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    Zethu Lubisi Response Paper 2 Complementarities Perspectives and Contingency Theory

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    Ntombizethu Lubisi
    The document discusses how information systems strategy influences organizational performance. It analyzes three papers that define and apply the contingency theory concept of "fit" between an organization's strategy, information systems, and business environment. The key aspects of fit are alignment and coordination between these elements. The document also examines frameworks that describe the relationships between business strategy, information systems strategy, and organizational strategy. Maintaining a balance between these is important for measuring performance. Ensuring strategic information systems planning properly defines goals and leads to implementation can help achieve fit and enhance performance.

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    Zethu Lubisi Response Paper 2 Complementarities Perspectives and Contingency Theory

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    Ntombizethu Lubisi
    23 views3 pages
    The document discusses how information systems strategy influences organizational performance. It analyzes three papers that define and apply the contingency theory concept of "fit" between an organization's strategy, information systems, and business environment. The key aspects of fit are alignment and coordination between these elements. The document also examines frameworks that describe the relationships between business strategy, information systems strategy, and organizational strategy. Maintaining a balance between these is important for measuring performance. Ensuring strategic information systems planning properly defines goals and leads to implementation can help achieve fit and enhance performance.

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    The document discusses how information systems strategy influences organizational performance. It analyzes three papers that define and apply the contingency theory concept of "fit" between an organization's strategy, information systems, and business environment. The key aspects of fit are alignment and coordination between these elements. The document also examines frameworks that describe the relationships between business strategy, information systems strategy, and organizational strategy. Maintaining a balance between these is important for measuring performance. Ensuring strategic information systems planning properly defines goals and leads to implementation can help achieve fit and enhance performance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    23 views3 pages

    Zethu Lubisi Response Paper 2 Complementarities Perspectives and Contingency Theory

    Uploaded by

    Ntombizethu Lubisi
    The document discusses how information systems strategy influences organizational performance. It analyzes three papers that define and apply the contingency theory concept of "fit" between an organization's strategy, information systems, and business environment. The key aspects of fit are alignment and coordination between these elements. The document also examines frameworks that describe the relationships between business strategy, information systems strategy, and organizational strategy. Maintaining a balance between these is important for measuring performance. Ensuring strategic information systems planning properly defines goals and leads to implementation can help achieve fit and enhance performance.

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    Zethu Lubisi Response Paper 2

    Complementarities Perspectives and Contingency


    Theory

    Technology has changed the way an organisation runs its day-to-day business activities. It has
    changed the business landscape in which the organisation operates, the business model has drastically
    changed. Managers often battle with finding the perfect fit for the different driving forces of business.
    Namely the organisation, the information system and the business strategy (Bechor et al., 2010a;
    Bergeron et al., 2001; Umanath, 2003a). Bechor et al., (2010b) argue that when an information system
    does not align with the business planning that often leads to the information system’s failure; Pearlson
    and Saunders (2013) misalignment of resources needed to achieve organisational goals often occurs
    when an organisation’s information systems fail to support the organisational systems. The
    introduction of strategy fit to ensure that there is alignment in the organisation, the system as well as
    the business.

    Three papers have been analysed and synthesised to get an in-depth view of the application of the
    contingency theory. The concept of fit needs to be thoroughly defined as it is central to the
    contingency theory (Bergeron et al., 2001). Venkatraman (1989) proposed a framework to classify the
    concept of fit.

    Fit Moderation Mediation Matching Covariation


    Profile Gestalts
    Deviation
    Defines An Based on Matching Internal Internal Seen as
    interaction intervention between consistency consistency pattern
    between two two variable among a set of multiple
    variables of contingencies
    underlying
    theoretical
    related
    variables

    How does IT strategy influence performance in the business environment?


    The organisation has used and continues to use the information system to counter force environmental
    uncertainty to gain competitive advantage, as well as the bargaining power of suppliers and alleviate
    threats of a substitute and new entrance (Pearlson and Saunders, 2013). Bergeron et al., (2001) argue
    that there have been a lot of studies to observe the connection between IT and performance among
    firms. More studies focused on strategy, IT and firm performance, other work has been done on
    environment IT and performance. Performance has not been afforded that much of an opportunity to
    be examined. What is also evident as mentioned by Bergeron et al., (2001) is the inability of
    technology fit to expound more on performance. Which then opens more room for work to be done in
    that area. What has been observed from studies, is performance can be the result of an organisation’s
    strong and focused IT management as well as a great strategic direction and implementation.
    Venkatraman (1989) makes emphasis on the differential conceptualisation of fit will lead to different
    results. The point of departure is a clear conceptualisation of fit will help avoid contradictory results.
    Bergeron et al., (2001) suggest that the fit (moderation, mediation, matching, covariation, profile
    deviation, or gestalts) to be studied, needs to be clearly defined. Furthermore, the different approaches
    indicate that profile deviation and covariation are better suited for testing a theory whereas gestalt will
    be better suited for theory building. The choices on which theory to be followed scholars should be
    clearly defined and selected perspectives of fit to get a richer and fuller explanation (Bergeron et al.,
    2001).

    Information Systems Strategy Triangle


    Pearlson and Saunders (2013) propose a framework that hopes to describe an alignment that is
    necessary within an organisation’s business strategy to understand the impact of IS on the
    organisation. Firms' business strategy drives are said to drive both organisational strategies as well as
    the IS strategy. Finding the perfect fit within the different entities may make room to examine
    performance. The business objectives, strategies, and tactics determine what IS must be implemented
    to meet the organisational strategy. The balance between business strategy, IS strategy and
    organisation strategy must be effectively maintained for the performance to be measured. Sabherwal
    and Chan (2001) also argued that alignment between business strategy and Information Systems has
    widely believed to improve performance. As a result, one can attest that proper strategic planning is
    necessary to ensure proper alignment is realised.

    Strategic Information System Planning (SISP) is defined as the process of strategic thinking that
    identifies the most desirable IS on which the firm can implement and enforce its long-term IT
    activities and policies (Bechor et al., 2010, p. 17). Salmela and Spil (2002) make emphasize the
    proper strategic planning to ensure IS assimilation. It is mentioned that a properly executed IS plan
    may ensure proper alignment of the organisation’s strategy (Bechor et al., 2010b).

    Bechor et al., (2010) suggested that to study the SIPS process and its impact on SISP success,
    contingency theory will be better suited. The framework suggested to study SISP processes on success
    is; Key Success Factors (KSF), the Planning approach and the Planning context. The analysis made by
    Bechor et al., (2010) is that SIPS success is dependent on alignment between SISP’ (context and
    approach). Ensuring the proper formulation of KSF during the formation phase of the SIPS process, a
    well-formulated plan during the SIPS KSF implementation has a positive effect on the SIPS process.
    In short, a proper plan of what is deemed as a key success factor in a SIPS process and its
    implementation can result in a successful SISP. Also, the opposite of that can lead to its failure.
    Managers are to ensure that proper definitions of the end goal, and proper implementation can lead to
    the success of the system information strategy (Pearlson and Saunders, 2013). When an IS strategy is
    well formulated and well carried out it stands a good chance to lead to better performance of an
    organization. An information system is at the centre of the organisation’s strategy and business
    strategy. Ensuring that IS strategy is well executed will ensure that an organisation performs well
    (Bechor et al., 2010b; Pearlson and Saunders, 2013).
    Bechor, T., Neumann, S., Zviran, M., Glezer, C., 2010a. A contingency model for estimating the
    success of strategic information systems planning. Inf. Manage. 47, 17–29.
    https://doi.org/10.1016/j.im.2009.09.004
    Bechor, T., Neumann, S., Zviran, M., Glezer, C., 2010b. A contingency model for estimating success
    of strategic information systems planning. Inf. Manage. 47, 17–29.
    https://doi.org/10.1016/j.im.2009.09.004
    Bergeron, F., Raymond, L., Rivard, S., 2001. Fit in strategic information technology management
    research: an empirical comparison of perspectives. Omega 29, 125–142.
    https://doi.org/10.1016/s0305-0483(00)00034-7
    Pearlson, K.E., Saunders, C.S., 2013. Strategic Management of Information System, Fifth. ed. John
    Wiley & Sons Ltd, Singapore.
    Sabherwal, R., Chan, Y.E., 2001. Alignment Between Business and IS Strategies: A Study of
    Prospectors, Analyzers, and Defenders. Inf. Syst. Res. 12, 11–33.
    Salmela, H., Spil, T.A.M., 2002. Dynamic and emergent information systems strategy formulation
    and implementation. Int J Inf Manag. https://doi.org/10.1016/S0268-4012(02)00034-8
    Umanath, N.S., 2003a. The concept of contingency beyond “It depends”: illustrations from IS
    research stream. Inf. Manage. 40, 551–562. https://doi.org/10.1016/s0378-7206(02)00080-0
    Umanath, N.S., 2003b. The concept of contingency beyond “It depends”: illustrations from IS
    research stream. Inf. Manage. 40, 551–562. https://doi.org/10.1016/s0378-7206(02)00080-0
    Venkatraman, N., 1989. The Concept of Fit in Strategy Research: Toward Verbal and Statistical
    Correspondence. Acad. Manage. Rev. 14, 423–444.
    https://doi.org/10.5465/amr.1989.4279078

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