Pushing the contextual envelope: developing and diffusing IS theory for health information systems research

Top management has been concerned with IT-business strategic alignment (hereafter referred to as alignment) for the past 30 years. Consequently, alignment researchers have developed many mo...

Six types of IT-business strategic alignment: an investigation of the constructs and their measurement

Over the years, Information Technology (IT) has struggled with how to create an effective structure and processes. It is our main thesis that if organizations focused more on implementing a sound IT governance strategy, it might help senior executives to manage not only the IT-related activities, but also the perceptions between IT and the rest of the organization, and, in doing so, foster a more successful IT organization. Using six case studies conducted within the oil and gas industry, we explore differences in perceptions toward IT and in the organization of IT activities. Using an Extended Platform Logic Perspective, we note differences and similarities between the firms, with respect to IT capabilities, relational and integration mechanisms, measures of success, and relationships with the business units. Our results suggest that our colleagues-in-practice have evolved from focusing on one-way architectures within a centralization/decentralization context toward a two-way relationship-oriented approach to managing the IT structure. We conclude by offering some thoughts on how IT executives can help to shape perceptions of IT within their firms and explore how academics can begin to help our colleagues-in-practice as they struggle with the governance of the IT function.

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An extended platform logic perspective of IT governance: managing perceptions and activities of IT

This study develops and tests the idea that the cross-business information technology integration (CBITI) capability of an acquirer creates significant value for shareholders of the acquirer in mergers and acquisitions (M&A). In M&A, integrating the IT systems and IT management processes of acquirer and target could generate benefits such as (a) the consolidation of IT resources and the reduction of overall IT costs of the combined firm, (b) the development of an IT-based coordination mechanism and the realization of cross-firm business synergies, (c) the minimization of potential disruptions to business operations, and (d) greater ability to comply with relevant laws and regulations and the reduction of regulatory compliance costs. We test these ideas in a sample of 141 acquisitions conducted by 86 Fortune 1000 firms. In the short run, acquirers that have high levels of CBITI capabilities receive positive and significant cumulative abnormal returns to their M&A announcements. Announcement period returns indicate that the capital markets value CBITI similarly in same-industry and different-industry acquisitions. In the long run, acquirers with high levels of CBITI capabilities obtain significantly higher abnormal operating performance. They create significantly greater value in complementary acquisitions from different industries than in related acquisitions from the same industry. The findings have important implications for M&A research and practice.

Cross-Business Information Technology Integration and Acquirer Value Creation in Corporate Mergers and Acquisitions

Effectively integrating the information technology (IT) divisions in mergers of large organisations can be critical to merger success. This paper analyses a case study of IT integration in a merger of two large Australian banks, and argues that an understanding of organisational and strategic fit at the level of the IT organisation can contribute to effective management of IT integration. The paper explores the fit within and between two organisational configurations of IT, and the dynamics of their integration. We discuss the contingencies underlying use of different models of IT integration, and suggest that ‘best of breed’ prescriptions may be inappropriate when the IT configurations of merging organisations are incompatible. In which case, an ‘absorption’ strategy can simplify a multi-dimensional misfit and reduce integration complexity.

Integrating information technology divisions in a bank merger Fit, compatibility and models of change

In mid-1987, Baxter Healthcare Corporation undertook a major IS strategic planning study on the heels of the company's merger with American Hospital Supply. Central to this planning effort was the building of a new level of partnership between business and IS managers in the new corporation. This article describes Baxter's seven-month planning effort and the role of this effort in building the partnership. Two specific planning behaviors are noted for their contribution: dual purpose executive interviews, designed to both elicit information and provide a basis for executive understanding of planning options; and "micro" and "macro" analysis template, which served to focus and clarify planning activities and options at both local and global levels within the firm. Several key components in effective partnership -- shared knowledge, shared commitment, and shared decision making -- were therefore encouraged and supported by this approacy.

Thomas J. Main

Papers

Managing the merger: building partnership through IT planning at the new Baxter