International Journal of Contents

  • 제6권4호
  • /
  • Pages.69-78
  • /
  • 2010
  • /
  • 1738-6764(pISSN)
  • /
  • 2093-7504(eISSN)
한국콘텐츠학회 (The Korea Contents Association)
권호 표지
DOI QR코드

DOI QR Code

Influential Factors for the IT Investment Decision Making Quality: An Empirical Study Focus on IT Governance

  • Ham, Ju-Yeon (Department of MIS Korea University Business School) ;
  • Lee, Jung-Hoon (Graduate School of Information Yonsei University) ;
  • Woo, Hyeok-Jun (Graduate School of Information Yonsei University)
  • 투고 : 2010.10.11
  • 심사 : 2010.12.10
  • 발행 : 2010.12.28
PDF 다운로드
⟨ 이전 논문 다음 논문 ⟩

초록

In recent years, many leading corporations are actively adopting IT as competitive resources to improve productivity and processes efficiency with strategic alignments. In effect, IT investment also continues to increase. As a vast growth of IT investment, questions and criticism on recent IT investment results are also rapidly being raised. Especially, improper decision making and management on IT investment may cause negative impact on the company's reputation and finances, therefore companies need reasonable and wise investment decision making on new IT projects. This study applies the conceptual framework of IT governance to IT investment decision making cases to examine how IT investment governance influences the quality of IT investment decision making and how business-IT strategic alignment affects the quality of IT investment decision making. This paper contributes to identify the main factors for reasonable and effective IT investment decision making and expected to provide proper guidelines for IT investment decision making.

키워드

참고문헌

  1. F. Bannister and D. Remenyi, “Value proposition in IT investment decisions,” The Electronic Journal of Information Systems Evaluation, vol. 4, no. 1, 1999.
  2. F. Bannister and D. Remenyi, “Acts of faith: instinct, value and IT investment decisions,” Journal of Information Technology, vol. 15, no. 3, 2000, pp. 231-241. https://doi.org/10.1080/02683960050153183
  3. R. Baron and D. Kenny, “The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations,” Journal of personality and social psychology, vol. 51, no. 6, 1986, pp. 1173-1182. https://doi.org/10.1037/0022-3514.51.6.1173
  4. S. Buckby, Board review of IT governance in Australian universities, Queensland University of Technology, Australia, 2008.
  5. J. Burn and C. Szeto, “A comparison of the views of business and IT management on success factors for strategic alignment,” Information & Management, vol. 37, no. 4, 2000, pp. 197-216. https://doi.org/10.1016/S0378-7206(99)00048-8
  6. J. Coughlan, M. Lycett, and R. Macredie, “Understanding the business-IT relationship,” International Journal of Information Management, vol. 25, no. 4, 2005, pp. 303-319. https://doi.org/10.1016/j.ijinfomgt.2005.04.003
  7. M. C. Cronk and E. P. Fitzgerald, “Constructing a theory of 'IS business value' from the literature.” Electronic Journal of Business Research Methods, vol. 1, no. 1, 2002, pp. 11-17.
  8. A. Croteau and F. Bergeron, “An information technology trilogy: business strategy, technological deployment and organizational performance,” Journal of Strategic Information Systems, vol. 10, no. 2, 2001, pp. 77-99. https://doi.org/10.1016/S0963-8687(01)00044-0
  9. B. Cumps, S. Viaene, G. Dedene, and J. Vandenbulcke, “An empirical study on business/ict alignment in european organizations,” Proc. 39th Hawaii International Conference on System Sciences, 2006.
  10. L. Dadayan, “Measuring Return on Government IT Investments,” Proc. 13th European Conference on Information Technology Evaluation, September 2006.
  11. S. De Haes and W. Van Grembergen, “IT Governance and its Mechanisms,” Information Systems Control Journal, vol. 1, 2004, pp. 27-33.
  12. S. De Haes and W. Van Grembergen, “IT governance structures, processes and relational mechanisms: Achieving IT/Business alignment in a major Belgian financial group,” Proc. 38th Hawaii International Conference on System Sciences, 2005.
  13. J. Dean Jr. and M. Sharfman, “Does decision process matter? A study of strategic decision-making effectiveness,” The Academy of Management Journal, vol. 39, no. 2, 1996, pp. 368-396. https://doi.org/10.2307/256784
  14. J. Dedrick, V. Gurbaxani, and K. Kraemer, “Information technology and economic performance: A critical review of the empirical evidence,” ACM Computing Surveys (CSUR), vol. 35, no. 1, 2003, pp. 1-28. https://doi.org/10.1145/641865.641866
  15. J. Duffy, “IT/Business alignment: Is it an option or is it mandatory?,” IDC document #26831, 2002a.
  16. J. Duffy, “IT Governance and business value part 1: IT Governance-An issue of critical importance,” IDC document #27291, 2002b.
  17. M. Earl, Management strategies for information technology, Prentice-Hall, Inc., Upper Saddle River, NJ, USA. 1989.
  18. R. Feurer, K. Chaharbaghi, M. Weber, and J. Wargin, “Aligning strategies, processes, and IT: A case study,” Information Systems Management, vol. 17, no. 1, 2000, pp. 23-34. https://doi.org/10.1201/1078/43190.17.1.20000101/31211.4
  19. Gartner, “Gartner Says IT Spending to rebound in 2010 with 3.3 Percent Growth After Worst Year Ever in 2009,” 2009, Available at: http://www.gartner.com/it/page.jsp?id=1209913
  20. E. Guldentops, “IT Governance: Part and Parcel of Corporate Governance, CIO Summit,” Procs. The European Financial Management & Marketing Conference, Brussels, 2003.
  21. J. Henderson and N. Venkatraman, “Strategic alignment: Leveraging information technology for transforming organizations,” IBM systems Journal, vol. 32, no. 1, 1993, pp. 4-16.
  22. ITGI., Board briefing on IT Governance, 2001.
  23. P. G. W. Keen, Every Manager's Guide to Information Technology: A Glossary of Key Terms and Concepts of Today's Leader (2 ed.), Harvard Business School Press, Cambridge, Massachusetts, 1995.
  24. B. J. Koo and K. H. Lee, “Analysing Decision Making Factors of IT Investment Projects,” Information Systems Review, vol. 9, no. 1, 2007, pp. 161-189.
  25. C. Lee, J. Lee, and D. Jang, “IT Governance-Based IT Strategy and Management: Literature Review and Future Research Directions,” Proc. 35th Conference on The Korea Society of Management Information Systems, 2006, pp. 853-863
  26. J. Lee and C. Lee, IT Governance-Based IT Strategy and Management: Literature Review and Future Research Directions Information Technology Governance and Service Management: Frameworks and Adaptations (pp. 44-62), Information Science Reference (an imprint of IGI Global), Hershey PA, 2008.
  27. J. B. Lee, Y. J. Hong, and Y. H. Chang, “A Case Study on the Correlation between the Quantitative and the Qualitative Evaluation of IT Investment Performance,” Information Systems Review, vol. 9, no. 2, 2007, pp. 149-168.
  28. C. Lin, G. Pervan, and D. McDermid, “IS/IT investment evaluation and benefits realization issues in Australia,” Journal of Research and Practice in Information Technology, vol. 37, no. 3, 2005, pp. 235-251.
  29. J. Luftman, “Assessing business-IT alignment maturity,” Communications of AIS, vol. 4, no.14, 2000.
  30. J. Luftman and T. Brier, “Achieving and sustaining business-IT alignment,” California Management Review, vol. 42, no.1, 1999, pp. 109-122. https://doi.org/10.2307/41166021
  31. R. Maes, “Reconsidering information management through a generic framework,” PrimaVera working Paper, Amsterdam, 1999, pp. 99-15.
  32. D. Mirtidis and V. Serafeimidis, “Evaluating information technology investments in Greece,” Proc. 1st European Conference on IT Investment Evaluation, Henley, September 1994.
  33. R. Morgan, “Information technology: second-class citizen or strategy partner,” Journal of Business Strategy, vol. 24, no. 6, 2003, pp. 38-45. https://doi.org/10.1108/02756660310698849
  34. P. Nutt, “The formulation processes and tactics used in organizational decision making,” Organization Science, vol. 4, no. 2, 1993, pp. 226-251. https://doi.org/10.1287/orsc.4.2.226
  35. P. Nutt, “Framing strategic decisions,” Organization Science, vol. 9, no. 2, 1998, pp. 195-216. https://doi.org/10.1287/orsc.9.2.195
  36. N. Patel, An emerging strategy for e-business IT Governance. In W. Van Grembergen (Ed.), Strategies for information technology governance (pp. 81-97), Idea Group Publishing, 2004.
  37. R. R. Peterson, Information strategies and tactics for information technology governance. In W. Van Grembergen (Ed.), Strategies for information technology governance, Idea Group Publishing, Hershey, PA, 2003.
  38. R. R. Peterson, “Configurations and coordination for global information technology governance designs in a traditional European context,” Proc. 34th Hawaii International Conference on System Sciences, 2004.
  39. Y. Pollalis, “Patterns of co-alignment in informationintensive organizations: business performance through integration strategies,” International Journal of Information Management, vol. 23, no. 6, 2003, pp. 469-492. https://doi.org/10.1016/S0268-4012(03)00063-X
  40. C. Ranganathan and V. Sethi, “Rationality in strategic information technology decisions: The impact of shared domain knowledge and IT unit structure,” Decision Sciences, vol. 33, no. 1, 2002, pp. 59-86. https://doi.org/10.1111/j.1540-5915.2002.tb01636.x
  41. P. Ribbers, R. Peterson, and M. Parker, “Designing information technology governance processes: Diagnosing contemporary practices and competing theories,” Proc. 35th Hawaii International Conference on Systems Sciences, 2002.
  42. S. Rodrigues and D. Hickson, “Success in decision making: different organizations, differing reasons for success,” Journal of Management Studies, vol. 32, no. 5, 1995, pp. 655-678. https://doi.org/10.1111/j.1467-6486.1995.tb00793.x
  43. V. Sambamurthy and R. Zmud, “Arrangements for information technology governance: A theory of multiple contingencies,” MIS Quarterly, vol. 23, no. 2, 1999, pp. 261-290. https://doi.org/10.2307/249754
  44. M. J. Schniederjans, J. L. Hamaker, and A. M. Schniederjans, Information Technology Investment: Decision-Making Methodology, World Scientific Publishing Company River Edge, New Jersey, 2004.
  45. Standish group, Chaos, 1995.
  46. T. Smaczny, “Is an alignment between business and information technology the appropriate paradigm to manage IT in today's organisations?,” Management Decision, vol. 39, no. 10, 2001, pp. 797-802. https://doi.org/10.1108/EUM0000000006521
  47. T. Teo and J. Ang, “Critical success factors in the alignment of IS plans with business plans,” International Journal of Information Management, vol. 19, no. 2, 1999, pp. 173-185. https://doi.org/10.1016/S0268-4012(99)00007-9
  48. W. Van Grembergen, Strategies for information technology governance, Idea Group Publishing Inc., Hershey, PA, 2004.
  49. W. Van Grembergen and S. De Haes, Implementing Information Technology Governance: Models, Practices and Cases, IGI Publishing, Hershey, PA, USA, 2008.
  50. W. Van Grembergen, S. De Haes, and E. Guldentops, Structures, processes and relational mechanisms for information technology governance: Theories and practices. In W. Van Grembergen (Ed.), Strategies for Information Technology Governance, Idea Group Publishing, 2004.
  51. W. Van Grembergen and R. Saull, “Aligning business and Information Technology through the balanced scorecard at a major Canadian financial group: Its status measured with an IT BSC Maturity Model,” Proc. 34th Hawaii International Conference on System Sciences, 2001.
  52. W. Van Grembergen, R. Saull, and S. De Haes, Linking the IT balanced scorecard to the business objectives at a major Canadian financial group. In W. Van Grembergen (Ed.), Strategies for information technology governance (pp. 129), Idea Group Publishing, Hershey, PA, 2003.
  53. P. Weill and M. Broadbent, Leveraging the new infrastructure: How market leaders capitalize on information technology, Harvard Business School Press, 1998.
  54. P. Weill and M. Olson, “Managing investment in information technology: mini case examples and implications,” MIS Quarterly, vol. 13, no. 1, 1989, pp. 3-17. https://doi.org/10.2307/248694
  55. P. Weill and J. W. Ross, IT governance: How top performers manage IT decision rights for superior results, Harvard Business School Press, Cambridge, MA, 2004.
  56. P. Weill and R. Woodham, Don’t just lead, govern: Implementing effective IT governance, Center for Information Systems Research, Massachusetts Institute of Technology, CISR Working Paper (No.326), 2002.