Ten years ago, we presented the DeLone and McLean Information Systems (IS) Success Model as a framework and model for measuring the complex-dependent variable in IS research. In this paper, we discuss many of the important IS success research contributions of the last decade, focusing especially on research efforts that apply, validate, challenge, and propose enhancements to our original model. Based on our evaluation of those contributions, we propose minor refinements to the model and propose an updated DeLone and McLean IS Success Model. We discuss the utility of the updated model for measuring e-commerce system success. Finally, we make a series of recommendations regarding current and future measurement of IS success.

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The DeLone and McLean Model of Information Systems Success: A Ten-Year Update

Prior research has provided valuable insights into how and why employees make a decision about the adoption and use of information technologies (ITs) in the workplace. From an organizational point of view, however, the more important issue is how managers make informed decisions about interventions that can lead to greater acceptance and effective utilization of IT. There is limited research in the IT implementation literature that deals with the role of interventions to aid such managerial decision making. Particularly, there is a need to understand how various interventions can influence the known determinants of IT adoption and use. To address this gap in the literature, we draw from the vast body of research on the technology acceptance model (TAM), particularly the work on the determinants of perceived usefulness and perceived ease of use, and: (i) develop a comprehensive nomological network (integrated model) of the determinants of individual level (IT) adoption and use; (ii) empirically test the proposed integrated model; and (iii) present a research agenda focused on potential pre- and postimplementation interventions that can enhance employees' adoption and use of IT. Our findings and research agenda have important implications for managerial decision making on IT implementation in organizations.

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Technology Acceptance Model 3 and a Research Agenda on Interventions

The Social Psychology of Organizations.

Trust: The Social Virtues and the Creation of Prosperity

How have Japanese companies become world leaders in the automotive and electronics industries, among others? What is the secret of their success? Two leading Japanese business experts, Ikujiro Nonaka and Hirotaka Takeuchi, are the first to tie the success of Japanese companies to their ability to create new knowledge and use it to produce successful products and technologies. In The Knowledge-Creating Company, Nonaka and Takeuchi provide an inside look at how Japanese companies go about creating this new knowledge organizationally. The authors point out that there are two types of knowledge: explicit knowledge, contained in manuals and procedures, and tacit knowledge, learned only by experience, and communicated only indirectly, through metaphor and analogy. U.S. managers focus on explicit knowledge. The Japanese, on the other hand, focus on tacit knowledge. And this, the authors argue, is the key to their success--the Japanese have learned how to transform tacit into explicit knowledge. To explain how this is done--and illuminate Japanese business practices as they do so--the authors range from Greek philosophy to Zen Buddhism, from classical economists to modern management gurus, illustrating the theory of organizational knowledge creation with case studies drawn from such firms as Honda, Canon, Matsushita, NEC, Nissan, 3M, GE, and even the U.S. Marines. For instance, using Matsushita's development of the Home Bakery (the world's first fully automated bread-baking machine for home use), they show how tacit knowledge can be converted to explicit knowledge: when the designers couldn't perfect the dough kneading mechanism, a software programmer apprenticed herself withthe master baker at Osaka International Hotel, gained a tacit understanding of kneading, and then conveyed this information to the engineers. In addition, the authors show that, to create knowledge, the best management style is neither top-down nor bottom-up, but rather what they call "middle-up-down," in which the middle managers form a bridge between the ideals of top management and the chaotic realities of the frontline. As we make the turn into the 21st century, a new society is emerging. Peter Drucker calls it the "knowledge society," one that is drastically different from the "industrial society," and one in which acquiring and applying knowledge will become key competitive factors. Nonaka and Takeuchi go a step further, arguing that creating knowledge will become the key to sustaining a competitive advantage in the future. Because the competitive environment and customer preferences changes constantly, knowledge perishes quickly. With The Knowledge-Creating Company, managers have at their fingertips years of insight from Japanese firms that reveal how to create knowledge continuously, and how to exploit it to make successful new products, services, and systems.

The knowledge-creating company

Best practice exemplars suggest that digital platforms play a critical role in managing supply chain activities and partnerships that generate performance gains for firms. However, there is limited academic investigation on how and why information technology can create performance gains for firms in a supply chain management (SCM) context. Grant's (1996) theoretical notion of higher-order capabilities and a hierarchy of capabilities has been used in recent information systems research by Barua et al. (2004), Sambamurthy et al. (2003), and Mithas et al. (2004) to reframe the conversation from the direct performance impacts of IT resources and investments to how and why IT shapes higher-order process capabilities that create performance gains for firms. We draw on the emerging IT-enabled organizational capabilities perspective to suggest that firms that develop IT infrastructure integration for SCM and leverage it to create a higher-order supply chain integration capability generate significant and sustainable performance gains. A research model is developed to investigate the hierarchy of IT-related capabilities and their impact on firm performance. Data were collected from 110 supply chain and logistics managers in manufacturing and retail organizations. Our results suggest that integrated IT infrastructures enable firms to develop the higher-order capability of supply chain process integration. This capability enables firms to unbundle information flows from physical flows, and to share information with their supply chain partners to create information-based approaches for superior demand planning, for the staging and movement of physical products, and for streamlining voluminous and complex financial work processes. Furthermore, IT-enabled supply chain integration capability results in significant and sustained firm performance gains, especially in operational excellence and revenue growth. Managerial initiatives should be directed at developing an integrated IT infrastructure and leveraging it to create process capabilities for the integration of resource flows between a firm and its supply chain partners.

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Firm performance impacts of digitally enabled supply chain integration capabilities

The value added by an organization’s IT assets is a critical concern to both research and practice. Not surprisingly, a large number of IS effectiveness measures can be found in the IS literature. What is not clear in the literature is what measures are appropriate in a particular context. In this paper we propose a two-dimensional matrix for classifying IS Effectiveness measures. The first dimension is the type of system studied. The second dimension is the stakeholder in whose interests the system is being evaluated. The matrix was tested by using it to classify IS effectiveness measures from 186 empirical papers in three major IS journals for the last nine years. The results indicate that the classifications are meaningful. Hence, the IS Effectiveness Matrix provides a useful guide for conceptualizing effectiveness measurement in IS research, and for choosing appropriate measures, both for research and practice.

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Dimensions of information systems success

A new model of competition, where competition is among supply chain networks rather than individual firms, is transforming traditional market-based buyer-supplier relations to one of competition among cooperative sets. In order to integrate and realize performance gains from participating in cooperative supply networks, the importance of information sharing across the supply chain has been emphasized in different literature streams. In this study, we examine the relational antecedents of this critical aspect of supply chain integration-that is, information flow integration. Our objective is to investigate the relationship between relational orientation of the focal firm, as characterized by (1) long-term orientation of its supply chain relationships, (2) asset specificity, and (3) interaction routines and the information flow integration between a firm and its supply chain partners. A research model was developed and data were collected from 110 supply chain and logistics managers in manufacturing and retail organizations. Our results suggest that tangible and intangible resources invested in supply chain relationships enable the integration of information flows with supply chain partners. Specifically, formal and informal interaction routines that take time and effort to develop enable integration of informational flows across a firm's supply chain. Investments in relation-specific assets and long-term orientation in relationships enable the development of these interaction routines.

Relational Antecedents of Information Flow Integration for Supply Chain Coordination

relationships between measures of information technology (IT) investment and facets of corporate business performance. The results of our study suggest that IT investments have begun to show results in proving they can make a positive contribution to firm output and labor productivity. However, various measures of IT investment do not appear to have a positive relationship with administrative productivity, showing inconsistent results in terms of business performance. Our analysis suggests that while IT is likely to improve organizational efficiency, its effect on administrative productivity and business performance might depend on such other factors as the quality of a firm’s management processes and ITstrategy links, which can vary significantly across organizations. Measurement of the business value of IT investment has been the subject of considerable debate by academics and practitioners. The term productivity paradox is gaining increasing notoriety as several studies point toward falling productivity and rising IT expenditure in the service sector. Loveman [9] summarizes the research that provides evidence suggesting IT investment produces negligible benefits. Other studies [3] take the position that the “shortfall of evidence” is not “evidence of a shortfall” [3]. Brynjolfsson [3] argues that lack of positive evidence is due to mismeasurements of outputs and inputs, lags in learning and adjustment, redistribution and dissipation of profits, and mismanagement of IT. Our first objective was to reexamine the performance effects of IT investment in light of data collected up to 1994 (see the sidebar, “How the Study Was Done”). We are uncomfortable making such a statement as we have not conducted similar systematic scientific analysis with data later than 1994. We included three measures of IT investments: aggregate IT, client/server systems, including Internet-related systems, and IT infrastructure. We studied firm performance in terms of firm output, measured using value added by the organization and total sales; business results, assessed using return on assets (ROA) and return on equity (ROE) measures of financial performance; and intermediate performance, assessed using labor productivity and administrative productivity. Older studies examining the value of IT investment treat such investment as a monolithic entity. It is reasonable to argue that how investment dollars are differentially allocated among various elements of the IT infrastructure should be examined in tandem with how many dollars are spent cumulatively. Our second objective was to examine the relationships between investments in

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Technology investment and business performance

The adoption rate of computer-aided software engineering (CASE) technology continues to be low among information systems departments (ISDs). Some ISDs have reported significant hurdles in propagating CASE usage, while documenting the advantages of the technology. We construct and empirically test a theoretical model to explain CASE adoption behavior. Factors considered include need pull (environmental instability of the ISD and performance gap of the ISD), technology push (internal experimentation and learning from external information sources), and the adoption context (top-management support for the IS function, CASE championship, training availability, and job/role rotation). A national survey of 2,700 ISDs resulted in 405 usable responses for the data analysis.Our analysis suggests a reasonable fit between the model and the data. The results indicate that the need-pull factors do not directly promote CASE adoption behavior. Performance deficit promotes CASE championship behavior while negatively affecting other elements of the adoption context. The instability of ISDs, where the very existence of the ISD may be in question, negatively affects all elements of the adoption context. Learning about CASE from external information sources directly promotes CASE adoption. Both technology push factors positively affect all four elements of the adoption context. Of the contextual elements, CASE training availability, CASE championship, and job/role rotation positively affect CASE adoption behavior. Top management support does not affect CASE adoption behavior, which suggests that such support may be more critical for postadoption stages of the diffusion process.

Ravi Patnayakuni

Papers

Firm performance impacts of digitally enabled supply chain integration capabilities

Dimensions of information systems success

Relational Antecedents of Information Flow Integration for Supply Chain Coordination

Technology investment and business performance

A structural model for CASE adoption behavior