The evolution of information technology (IT) in organizations is often portrayed as following three eras—Data Processing, Management Information Systems, and Strategic Information Systems (SIS)—each displaying distinct characteristics regarding the application of IT and having different objectives. While investments in IT continue to made for both efficiency and effectiveness purposes, the SIS era is premised on management proactively seeking out opportunities for competitive advantage through IT, with approaches to information systems (IS) strategy formulation accommodating the requirement for both alignment of IS/IT investments with corporate strategy and assessing the disruptive impact of technology and the options for its use in shaping business strategy. Frameworks, methodologies and tools have been developed to support the objectives of the SIS era, yet the mechanisms through which organizations achieve repeated and sustained value from IT has received scant attention. Drawing on resource-based theory, this paper proposes a perspective on the management of IT in organizations that specifically considers how organizations can continuously derive and leverage value through IT. The analysis moves beyond a focus on identifying ‘strategic systems’ and develops the concept of an IS capability, suggesting that it heralds the arrival of a new era. The paper presents a model of an IS capability, outlines its core components and illustrates its application.

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Beyond strategic information systems: towards an IS capability

The role of information systems in the creation and appropriation of economic value has a long tradition of research, within which falls the literature on the sustainability of IT-dependent competitive advantage. In this article, we formally define the notion of IT-dependent strategic initiative and use it to frame a review of the literature on the sustain- ability of competitive advantage rooted in information systems use. We offer a framework that articulates both the dynamic approach to IT-dependent strategic advantage currently receiving attention in the literature and the underlying drivers of sustainability. This framework models how and why the characteristics of the IT-dependent strategic initiative enable sustained competitive advantage, and how the determinants of sustainability are developed and strengthened over time. Such explanation facilitates the pre-implementation analysis of planned initiatives by innovators, as well as the post-implementation evaluation of existing initiatives so as to identify the basis of their sustainability.

In carrying out this study, we examined the interdisciplinary literature on strategic information systems. Using a structured methodology, we reviewed the titles and abstracts of 648 articles drawn from information systems, strategic management, and marketing literature. We then examined and individually coded a relevant subset of 117 articles. The literature has identified four barriers to erosion of competitive advantage for IT-dependent strategic initiatives and has surfaced the structural determinants of their magnitude. Previous work has also begun to theorize about the process by which these barriers to erosion evolve over time. Our review reveals that significant exploratory research and theoretical development have occurred in this area, but there is a paucity of research providing rigorous tests of theoretical propositions.

Our work makes three principal contributions. First, it formalizes the definition of IT-dependent strategic initiative. Second, it organizes the extant interdisciplinary research around an integrative framework that should prove useful to both research and practice. This framework offers an explanation of how and why IT-dependent strategic initiatives contribute to sustained competitive advantage, and explains the process by which they evolve over time. Finally, our review and analysis of the literature offers the basis for future research directions.

Review: it-dependent strategic initiatives and sustained competitive advantage: a review and synthesis of the literature

In information systems, most research on knowledge management assumes that knowledge has positive implications for organizations. However, knowledge is a double-edged sword: while too little might result in expensive mistakes, too much might result in unwanted accountability. The purpose of this paper is to highlight the lack of attention paid to the unintended consequences of managing organizational knowledge and thereby to broaden the scope of IS-based knowledge management research. To this end, this paper analyzes the IS literature on knowledge management. Using a framework developed by Deetz (1996), research articles published between 1990 and 2000 in six IS journals are classified into one of four scientific discourses. These discourses are the normative, the interpretive, the critical, and the dialogic. For each of these discourses, we identify the research focus, the metaphors of knowledge, the theoretical foundations, and the implications apparent in the articles representing it. The metaphors of knowledge that emerge from this analysis are knowledge as object, asset, mind, commodity, and discipline. Furthermore, we present a paper that is exemplary of each discourse. Our objective with this analysis is to raise IS researchers' awareness of the potential and the implications of the different discourses in the study of knowledge and knowledge management.

Studying knowledge management in information systems research: discourses and theoretical assumptions

This chapter explains the meaning of basic terms and concepts related to expert systems, describes the architecture and functions of an expert system, and the conditions under which the building or purchase of an expert system is feasible. The benefits and disadvantages attached to the use of expert systems will be analysed. Also included are a description of the tools and methods used for building expert systems plus the criteria used to evaluate and compare these tools. Finally the reader will gain an understanding of the difficult process of knowledge acquisition and an awareness of the legal implications of the use of expert systems.

Expert systems

Supply chain uncertainty is an issue with which every practicing manager wrestles, deriving from the increasing complexity of global supply networks. Taking a broad view of supply chain uncertainty (incorporating supply chain risk), this paper seeks to review the literature in this area and develop a theoretical foundation for future research. The literature review identifies a comprehensive list of fourteen sources of uncertainty, including those that have received much research attention, such as the bullwhip effect, and those more recently described, such as parallel interaction. Approaches to managing these sources of uncertainty are classified into: ten approaches that seek to reduce uncertainty at its source; and, eleven approaches that seek to cope with it thereby minimising its impact on performance. Manufacturing strategy theory, including the concepts of alignment and contingency, is then used to develop a model of supply chain uncertainty, which is populated using the literature review to show alignment between uncertainty sources and management strategies. Future research proposed includes more empirical research in order to further investigate: which uncertainties occur in particular industrial contexts; the impact of appropriate sources/management strategy alignment on performance; and the complex interplay between management strategies and multiple sources of uncertainty (positive or negative).

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Supply-chain uncertainty: a review and theoretical foundation for future research

The use of information technology (IT) in organizations is subject to various kinds of potential risks. Explores the environment of IT in organizations, identifies the probable threats, and proposes a framework for integrated risk management. The risk management process has four major components ‐‐ risk identification, risk analysis, risk‐reducing measures, and risk monitoring. The framework can be used to guide organizations in reducing the losses resulting from the realization of threats to IT use.

A framework for integrated risk management in information technology

Knowledge acquisition skills and traits: a self-assessment of knowledge engineers

A number of information technology (IT) researchers have examined IT and sustained competitive advantage. However, the relationship between software patents and IT sustained advantage is often unclear and incomplete. This paper reviews some of that research, pointing out various research contributions while indicating some of the problematic issues in dealing with competitive advantage and software patents. In addition, we highlight a number of software-based patents that have been awarded to organizations in diverse industries, including some that provide researchers and executives with insight into how organizations are protecting unique business methods with software patents. We also pose some intriguing research questions, including determining why firms do in fact patent software, and investigating the potential differences in doing business globally involving countries that either take steps to protect software assets with patents versus those that do not. Based on the information presented, we anticipate that IT researchers would be more open to investigating the relationship between software patents and sustaining IT-based competitive advantage.

The role of software patents in sustaining IT-enabled competitive advantage: a call for research

The development of expert systems has changed dramatically in recent years based largely on concepts dealing with artificial intelligence. These efforts are evolving from very specific, academically oriented efforts, such as medical diagnosis, to more managerially oriented corporate issues. Unfortunately, many proponents of these systems may be overlooking possible legal ramifications related to both the development and use of these systems. A major issue concerns the establishment of liability for the decisions and recommendations made by expert systems. Some liabilities could include product liability and negligence. All individuals involved with expert systems (knowledge engineers, domain experts, and users) are potentially subject to legal scrutiny. It behooves organizations involved in these systems to investigate potential legal problems concerning them. As these systems become more pervasive, courts may look upon them for what they are: systems of knowledge and experience, not simply passive computer software. A framework is presented that traces the development of a product, legal issues related to the development, and normative measures that organizations can take to forestall possible legal calamities.

https://www.jstor.org/stable/pdfplus/249305.pdf

Expert systems: a question of liability?

Defects in computer-based systems (CBS) can adversely affect systems development efforts and can present serious legal challenges to developers. Of particular significance are the torts of strict products liability and negligence that can arise as a result of harm or injury resulting from, among other things, poor testing of systems, inadequate warnings, or failure to use state-of-the-art technology. The threat of injury has caused federal and state agencies and legislatures to consider seriously courses of action to inhibit the more injurious effects of such systems. This paper examines these two torts in some detail and illustrates how CBS developers could be threatened as a result of defective systems. We also present a framework for injury assessment and reduction of legal liability that can be used to guide CBS developers in assessing the possibility of injury resulting from development flaws. Further, the framework aids developers in their decision-making process by identifying appropriate measures to take to reduce their legal liability arising from what could be determined to be faulty systems development efforts. In addition, the use of the measures suggested by our framework might provide safer systems to avoid harming individuals.

Kathleen Mykytyn

Papers

A framework for integrated risk management in information technology

Knowledge acquisition skills and traits: a self-assessment of knowledge engineers

The role of software patents in sustaining IT-enabled competitive advantage: a call for research

Expert systems: a question of liability?

A framework to limit systems developers' legal liabilities