Showing papers in "Journal of Management Information Systems in 2001"

Knowledge Management: An Organizational Capabilities Perspective

Abstract: A hallmark of the new economy is the ability of organizations to realize economic value from their collection of knowledge assets as well as their assets of information, production distribution, and affiliation. Despite the competitive necessity of becoming a knowledge-based organization, senior managers have found it difficult to transform their firms through programs of knowledge management. This is particularly true if their organizations have long histories of process and a tradition of business success. This research examines the issue of effective knowledge management from the perspective of organizational capabilities. This perspective suggests that a knowledge infrastructure consisting of technology, structure, and culture along with a knowledge process architecture of acquisition, conversion, application, and protection are essential organizational capabilities or “preconditions” for effective knowledge management. Through analysis of surveys collected from over 300 senior executives, this research empirically models and uncovers key aspects of these dimensions. The results provide a basis for understanding the competitive predisposition of a firm as it enters a program of knowledge management.

Knowledge Management Strategies: Toward a Taxonomy

Abstract: This paper draws on primary and secondary data to propose a taxonomy of strategies, or “schools,” for knowledge management. The primary purpose of this framework is to guide executives on choices to initiate knowledge management projects according to goals, organizational character, and technological, behavioral, or economic biases. It may also be useful to teachers in demonstrating the scope of knowledge management and to researchers in generating propositions for further study.

Identifying Software Project Risks: An International Delphi Study

Abstract: Advocates of software risk management claim that by identifying and analyzing threats to success (i.e., risks) action can be taken to reduce the chance of failure of a project. The first step in the risk management process is to identify the risk itself, so that appropriate countermeasures can be taken. One problem in this task, however, is that no validated lists are available to help the project manager understand the nature and types of risks typically faced in a software project. This paper represents a first step toward alleviating this problem by developing an authoritative list of common risk factors. We deploy a rigorous data collection method called a “ranking-type” Delphi survey to produce a rank-order list of risk factors. This data collection method is designed to elicit and organize opinions of a panel of experts through iterative, controlled feedback. Three simultaneous surveys were conducted in three different settings: Hong Kong, Finland, and the United States. This was done to broaden our view of the types of risks, rather than relying on the view of a single culture-an aspect that has been ignored in past risk management research. In forming the three panels, we recruited experienced project managers in each country. The paper presents the obtained risk factor list, compares it with other published risk factor lists for completeness and variation, and analyzes common features and differences in risk factor rankings in the three countries. We conclude by discussing implications of our findings for both research and improving risk management practice.

Toward a Theory of Knowledge Reuse: Types of Knowledge Reuse Situations and Factors in Reuse Success

Abstract: This paper represents a step toward a theory of knowledge reusability with emphasis on knowledge management systems and repositories, often called organizational memory systems. Synthesis of evidence from a wide variety of sources suggests four distinct types of knowledge reuse situations according to the knowledge reuser and the purpose of knowledge reuse. The types involve shared work producers, who produce knowledge they later reuse; shared work practitioners, who reuse each other's knowledge contributions; expertise-seeking novices; and secondary knowledge miners. Each type of knowledge reuser has different requirements for knowledge repositories. Owing to how repositories are created, reusers'requirements often remain unmet. Repositories often require considerable rework to be useful for new reusers, but knowledge producers rarely have the resources and incentives to do a good job of repurposing knowledge. Solutions include careful use of incentives and human and technical intermediaries.

General Perspectives on Knowledge Management: Fostering a Research Agenda

Abstract: We trace in pragmatic terms some of what we know about knowledge, information technology, knowledge management practice and research, and provide two complementary frameworks that highlight potential opportunities for building a research agenda in this area. The papers in this special issue are then discussed.

Using Mentoring and Storytelling to Transfer Knowledge in the Workplace

Abstract: The core capabilities of an organization include critical skills of employees, management systems, and norms and values. Core capabilities may be transferred formally and explicitly. However, much knowledge, particularly knowledge with rich tacit dimensions, is transferred informally through processes of socialization and internalization. We focus on two transfer mechanisms - mentoring and storytelling - that can leverage the knowledge of an organization, particularly its tacit knowledge, to build core capabilities. We draw on relevant research in learning and cognitive psychology to clarify the conditions under which mentoring and storytelling can be most effective as carriers of knowledge. Finally, we present recommendations for specific managerial practices that follow from our analysis.

Organizational Knowledge Management: A Contingency Perspective

Abstract: Prior research examines several knowledge management processes, considering each as universally appropriate. Instead, we propose that the context influences the suitability of a knowledge management process. We develop a contingency framework, including two attributes of the organizational subunit's tasks: process or content orientation, and focused or broad domain, and links knowledge management processes to them: internalization for focused, process-oriented tasks; externalization for focused, content-oriented tasks; combination for broad, content-oriented tasks; and socialization for broad, process-oriented tasks. The empirical research was done at the Kennedy Space Center (KSC), based on several interviews and survey data from 159 individuals across 8 subunits. The results supported the contingency framework. All the knowledge management processes except externalization had a positive impact in the expected cell. At the overall level, combination and externalization, but not internalization and socialization, affect knowledge satisfaction. Some implications for practice and research are identified.

Exploring Perceptions of Organizational Ownership of Information and Expertise

Abstract: Beliefs of organizational ownership relate to whether information and knowledge created by an individual knowledge worker are believed to be owned by the organization. Beliefs about property rights affect information and knowledge sharing. This study explored factors that help determine an individual's beliefs about the organizational ownership of information and expertise that he or she has created. Four different situations of organizational ownership (information vs. expertise/internal vs. external sharing) were considered. The study found that a belief in self-ownership was positively associated with organizational ownership - suggesting a collaborative type of ownership situation for both information and expertise and for both internal (intraorganizational) and external (interorganizational) sharing situations. Organizational culture and the type of employee also influenced the beliefs of organizational ownership in all four scenarios. We conclude the paper with implications for practice and future research.

Information Technology Competence of Business Managers: A Definition and Research Model

Abstract: This research explores the concept of the information technology (IT) competence of business managers, defined as the set of IT-related explicit and tacit knowledge that a business manager possesses that enables him or her to exhibit IT leadership in his or her area of business. A manager's knowledge of technologies, applications, systems development, and management of IT form his or her explicit IT knowledge. This domain further extends to include knowing who knows what, which enables the manager to leverage the knowledge of others. Tacit IT knowledge is conceptualized as a combination of experience and cognition. Experience relates to personal computing, IT projects, and overall management of IT. Cognition refers to two mental models: the manager’s process view and his or her vision for the role of IT. The outcomes expected from IT-competent business managers are chiefly two behaviors: an increased willingness to form partnerships with IT people and an increased propensity to lead and participate in IT projects.

An Integrative Contingency Model of Software Project Risk Management

Abstract: Drawing both from the IS literature on software project risk management and the contingency research in Organization Theory literature, the present study develops an integrative contingency model of software project risk management. Adopting a profile deviation perspective of fit, the outcome of a software development project (Performance) is hypothesized to be influenced by the fit between the project's risk (Risk Exposure) and how project risk is managed (Risk Management Profile). The research model was tested with longitudinal data obtained from project leaders and key users of 75 software projects. The results support the contingency model proposed and suggest that in order to increase project performance a project's risk management profile needs to vary according to the project's risk exposure. Specifically, high-risk projects were found to call for high information processing capacity approaches in their management. However, the most appropriate management approach was found to depend on the performance criterion used. When meeting project budgets was the performance criterion, successful high-risk projects had high levels of internal integration, as well as high levels of formal planning. When system quality was the performance criterion, successful high-risk projects had high levels of user participation.

Impact of Information Technology Management Practices on Customer Service

Abstract: Recently,despite huge incentives and subsequent increases in investment in customer relationship management technology, many firms have not been able to increase their customer satisfaction index ratings. The purpose of this paper is to gauge whether IT management practices differ among firms where IT has a major role in transforming marketing, operations, or both, which give the firms advantage by affecting their customer service. Several research hypotheses are tested using data obtained from a survey of 213 IT-leaders in the financial services industry. The results clearly indicate that the IT-leader firms have a higher level of IT management sophistication and a higher role for their IT-leaders compared to IT-enabled customer focus, IT-enabled operations focus, and IT-laggard firms. This paper concludes with the implications for both researchers and practitioners.

An Empirical Investigation of User Requirements Elicitation: Comparing the Effectiveness of Prompting Techniques

Abstract: Eliciting requirements from users and other stakeholders is of central importance to information systems development. Despite this importance, surprisingly little research has measured the effectiveness of various requirements elicitation techniques. The present research first discusses theory relevant to information requirements determination in general and elicitation in particular.We then develop a model of the requirements elicitation process. This model and its underlying theory were then used to construct a new requirements elicitation prompting technique. To provide a context for testing the relative effectiveness of the new technique, two other questioning methodologies were also operationalized as prompting techniques: (1) the interrogatories technique, which involves asking “who,” “what,” “when,” “where,” “how,” and “why” questions; and (2) a semantic questioning scheme, which involves asking questions based on a theoretical model of knowledge structures. To measure the usefulness of the prompting techniques in eliciting requirements, a set of generic requirements categories was adapted from previous research to capture requirements evoked by users. The effectiveness of the three methods in eliciting requirements for a software application was then tested in an experiment with users. Results showed that the new prompting technique elicited a greater quantity of requirements from users than did the other two techniques. Implications of the findings for research and systems analysis practice are discussed.

An Empirical Analysis of Data Requirements for Financial Forecasting with Neural Networks

Abstract: Neural networks have been shown to be a promising tool for forecasting financial time series. Several design factors significantly impact the accuracy of neural network forecasts. These factors include selection of input variables, architecture of the network, and quantity of training data. The questions of input variable selection and system architecture design have been widely researched, but the corresponding question of how much information to use in producing high-quality neural network models has not been adequately addressed. In this paper, the effects of different sizes of training sample sets on forecasting currency exchange rates are examined. It is shown that those neural networks-given an appropriate amount of historical knowledge-can forecast future currency exchange rates with 60 percent accuracy, while those neural networks trained on a larger training set have a worse forecasting performance. In addition to higher-quality forecasts, the reduced training set sizes reduce development cost and time.

The Impact of Technology Investments on a Firm's Production Efficiency, Product Quality, and Productivity

Abstract: For over a decade, empirical studies in the information technology (IT) value literature have examined the impact of technology investments on various measures of performance. However, the results of these studies, especially those examining the contribution of IT to productivity, have been mixed. One reason for these mixed empirical findings may be that these studies have not effectively accounted for the impact of technology investments that increase production efficiency and improve product quality on firm productivity. In particular, it is commonly assumed that such investments should lead to gains in both profits and productivity. However, using a closed-form analytical model we challenge this underlying assumption and demonstrate that investments in certain efficiency-enhancing technologies may be expected to decrease the productivity of profit-maximizing firms. More specifically, we demonstrate that investments in technologies that reduce the firm's fixed overhead costs do not affect the firm's product quality and pricing decisions but do increase profits and improve productivity. In addition, we demonstrate that investments in technologies that reduce the variable costs of designing, developing, and manufacturing a product encourage the firm to improve product quality and to charge a higher price. Although this adjustment helps the firm to capture higher profits, we show that it will also increase total production costs and will, under a range of conditions, decrease firm productivity. Finally, we show that the direction of firm productivity following such investments depends upon the relationship between the fixed costs of the firm and the size of the market.

New Buyers' Arrival Under Dynamic Pricing Market Microstructure: The Case of Group-Buying Discounts on the Internet

Abstract: Dynamic pricing mechanisms occur on the Internet when buyers and sellers negotiate the final transaction price for the exchange of goods or services. These mechanisms are used in online auctions (e.g., eBay.com, uBid.com) and name-your-own-price (Priceline.com) formats, for example. The current research studies the dynamics of one instance of dynamic pricing - group-buying discounts - used by MobShop.com, whose products' selling prices drop as more buyers place their orders. We collect and analyze changes in the number of orders for MobShop-listed products over various periods of time, using an econometric model that reflects our understanding of bidder behavior in the presence of dynamic pricing and different levels of bidder participation. We find that the number of existing orders has a significant positive effect on new orders placed during each three-hour period, indicating the presence of a positive participation externality effect. We also find evidence for expectations of falling prices, a price drop effect. This occurs when the number of orders approaches the next price drop level and the price level for transacting will fall in the near future. The results also reveal a significant ending effect, as more orders were placed during the last three-hour period of the auction cycles. We also assess the efficacy of group-buying business models to shed light on the recent failures of many group-buying Web sites.

Information Goods and Vertical Differentiation

Abstract: Second-degree price discrimination, that is, vertical differentiation, is widely practiced by firms selling physical goods to consumers with heterogeneous valuations This strategy leads to market segmentation and has been shown to be optimal by many researchers On the other hand, researchers have also demonstrated, under certain restrictive conditions, that vertical differentiation may not be optimal for information goods We analyze vertical differentiation for a monopolist, continuing the practice of modeling consumer valuation as a linear function of product quality and consumer type but generalizing assumptions about marginal costs and consumer distributions We show that the firm's optimal product line depends on the benefit-to-cost ratio of qualities in the choice vector We find that a vertical differentiation strategy is not optimal when the highest quality product has the best benefitto-cost ratio Many information goods satisfy this property

Situated Learning and the Situated Knowledge Web: Exploring the Ground Beneath Knowledge Management

Abstract: Knowledge is now recognized as an important basis for competitive advantage and many firms are beginning to establish initiatives to leverage and manage organizational knowledge. These include efforts to codify knowledge in repositories as well as efforts to link individuals using information technologies to overcome geographic and temporal barriers to accessing knowledge and expertise. We suggest that Knowledge Management (KM) efforts, to be successful, need to be sensitive to features of the context of generation, location, and application of knowledge. To this end, we highlight the situated organizational learning perspective that views knowledge as embedded in individuals, in connections between individuals, and in artifacts as a useful lens to examine phenomena related to the establishment of KM initiatives. In an ethnographic case study of an effort to change knowledge-work processes in a market research firm, we apply the situated knowledge perspective to highlight the factors responsible for the limited success of the initiative in the firm. This study suggests that a consideration of the situated knowledge web and the alignment of the initiatives with the features of the knowledge web are central to success in knowledge management efforts in firms.

Telecommunications and Economic Activity: An Analysis of Granger Causality

Abstract: The pervasive role of telecommunications in contemporary commerce is well documented, and has dramatically increased the demand for services. Across the world, countries are seeking to improve telecommunications infrastructure and benefit from anticipated increases in economic activity, and a causal relation between the two is often tacitly assumed. This paper analyzes aggregate data at the national level to see if there is any empirical evidence that supports this assumption. We apply the well established Granger test for causality using time series data for levels of telecommunications infrastructure and economic activity from thirty countries. We find that the evidence for causality from levels of telecommunications infrastructure to economic activity is stronger than that for causality in the opposite direction. Moreover, this pattern appears to hold for both industrialized and developing economies, even though the former has strong service sectors that are heavily dependent on telecommunications. These findings provide additional insights into the complex relationship between telecommunications and economic activity. Some potential policy implications are also discussed. Granger causality tests have not seen much application in the IS literature, and we mention some IS research issues that may benefit from such analysis.

Keeping Mum as the Project Goes Under: Toward an Explanatory Model

Abstract: The problem of “runaway” information systems (IS) projects can be exacerbated by the reluctance of organizational members to transmit negative information concerning a project and its status. Drawing upon relevant bodies of literature, this paper presents a model of the reluctance to report negative project news and develops hypotheses to be tested. An experiment, which was designed to test these hypotheses for both internal and external reporting alternatives, is then described. Two factors are manipulated: (1) the level of impact associated with project failure should an individual fail to report negative information, and (2) the level of observed behavioral wrongdoing associated with the project. The results explain a significant portion of the variance in the reluctance to report negative information and suggest that there are some differences in internal and external reporting behavior. Implications for research and practice are discussed.

Should We Wait? Network Externalities, Compatibility, and Electronic Billing Adoption

Abstract: This study examines the adoption of electronic bill presentment and payment (EBPP) technology. EBPP continues to grow and will become a multibillion dollar e-commerce industry. The technology adoption configuration in this context is quite interesting because it involves four stakeholders: billers, bill consolidators, banks, and consumers. Banks and bill consolidators compete to act as an intermediary between billers and consumers. Network externalities play a significant role: the more billers that adopt the technology, the more consumers are willing to use the services. Our analysis is based on the welfare economics concept of finding the socially optimum adoption configuration and the resulting adoption pattern in a market with sponsored technologies. The results show that due to network externalities, billers are more likely to adopt the existing technology early, though the next technology might be superior to the current one. When the higher costs of early adoption are taken into account, the model shows that billers are more willing to wait, ceteris paribus. Our results also show that anticipation of a new and better, but compatible, technology might cause billers to wait, depending on what benefits they expect by adopting early, and how much cost they anticipate to incur upgrading their technology later.

Retail Bank Services Strategy: A Model of Traditional, Electronic, and Mixed Distribution Choices

Abstract: Design of a retail banking distribution strategy is an important issue in that industry. This paper shows the effect of new electronic distribution technologies such as PC banking on the choice of a bank's distribution strategy. We present a competitive model of distribution strategy choice, including heterogeneous consumers and banks, that allows a rich variety of customer preference and technology cost parameters. Sensitivity analysis shows how several parameters affect the competitive outcome. This analysis suggests that changing consumer behavior and attitudes, instead of banks' cost structure with new technologies significantly affects the bank's distribution strategy choice. If the segment of consumers that prefers PC banking remains small relative to the segment that prefers branches, then there will still be a market for specialized branch banks. Branch banking without PC banking services will be a viable strategy until the segment that prefers PC banking grows larger (amounting to about 40 percent of all transactions). Banks offering both branch and PC banking services can prevent successful and profitable entry by virtual banks (Internet banks offering only PC banking services) as long as the segment of customers that prefer PC banking remains relatively small (less than two-thirds of all transactions). Beyond this fraction, virtual banks will be profitable. This analysis suggests that it may be a long time (if ever) before virtual banks turn a profit.

Special Issue: Knowledge Management

Abstract: (2001). Special Issue: Knowledge Management. Journal of Management Information Systems: Vol. 18, No. 1, pp. 3-4.

Rapid Information Technology Change, Coping Mechanisms, and the Emerging Technologies Group

Abstract: Information technology (IT) changes rapidly, seriously challenging IT management. In response, many organizations create a formal group of IT professionals to evaluate emerging IT so they can better cope with its change. A survey based on structured interviews was mailed to a nationwide sample of 1,000 IT organizations. Two hundred forty-six respondents provided data to identify categories of coping mechanisms to handle changing IT. Five categories emerged: Education and Training, Internal Procedures, Vendor Support, Consultant Support, and Endurance. Organizations apply Education and Training more extensively than the others. Thus the research contributes to understanding the means by which organizations cope with rapid IT change. The research also found that organizations with a group dedicated to investigating emerging IT cope more extensively, but not more successfully, than do those without one. Thus the research contributes not only by providing an understanding of how organizations cope with rapid IT change, but also by suggesting the need to achieve more from the group charged with emerging IT.

A Method for Generation of Alternatives by Decision Support Systems

Abstract: An essential feature of active Decision Support Systems (DSS) is the ability to take the initiative in performing decision-related tasks. One possibility for providing active high cognitive level decision support is through facilitating alternative generation in DSS. The method proposed in this work enables the generation of several diverse alternatives in a single run. The method relies on the principles of effective problem-solving/decision-making and facilitates divergent processes, the separation of alternative generation from evaluation, as well as the diminishing of human cognitive biases. A hybrid DSS based on genetic algorithms (GA) and fuzzy sets is used to operationalize the approach. The paper outlines the design requirements for alternative generation in DSS and discusses the inadequacies of the “what-if” simulation and traditional optimization methods in light of these requirements. The paper further elaborates on the appropriateness of GA as a tool for alternative generation in DSS for solving complex ill-structured problems. The method is illustrated using marketing mix problem in a simulated business environment. The results suggest that the GA-based alternative generation leads to promising diverse alternatives. An active DSS incorporating the proposed method reduces the time-consuming manual search for promising alternatives and provides a higher degree of man-machine collaboration.

A Choice Model for the Selection of Computer Vendors and Its Empirical Estimation

Abstract: Despite the important role of vendors in the IT procurement process, very few studies have considered vendor characteristics and their effects on the decision outcome of IT managers. In this paper,we present a discrete choice model to examine the effects of vendor characteristics on the purchase decisions of IT managers. Our intent is to empirically assess the effects of product variety, brand name, average price, and network externalities in the selection of computer vendors. To ensure that the effects are not technology-dependent, we deliberately use long time series data to calibrate the model.Annual data at the vendor level from 1965 to 1993 is used to infer the choice criteria of IT managers in three computer categories: mainframe, minis, and small systems. Our empirical findings indicate that a broader product line and a strong brand can effectively enhance the choice probability of a vendor. Implications of these findings and possible extensions are also discussed.

Forward Versus Spot Buying of Information Goods

Abstract: Several information goods, such as movie distribution rights or newspapers, are sold either at spot prices, or through forward subscription buying. Our paper considers a firm that offers an information good through spot buying, forward buying at a reduced price, or a combination of the two. The time lag between forward buying and spot buying brings about an uncertainty in a consumer's reservation price for the good at the time of advance purchase. We propose a consumer decision-making model that captures this fundamental feature and provides interesting insights into the key elements of consumer behavior. We establish that a consumer offered the choice between forward buying and waiting to (possibly) buy the good on spot faces the tradeoff between a lower unit price and the value of updated preferences. We also establish that consumers preferring forward buying have a relatively high expectation and low uncertainty in their reservation prices for the good at the time of advance purchase, while those preferring spot buying have a relatively low expectation and high uncertainty in their reservation prices for the good. We apply the model to formulate and analyze the firm’s problem when it is either a price taker or a price setter. When the firm is a price taker, the choice is whether to offer the good for only forward buying, only spot buying, or a combination of the two. With an example, we show that when both the spot price and the discount on forward buying are moderate in values, the seller chooses the mixed strategy of offering both forward and spot buying simultaneously. When the firm is a price setter, the goal is to choose the offering(s) and the price level(s). With the example, we show how firms selling information goods can increase their revenues by using a mixed offering strategy with both spot and forward offerings. This strategy lends itself to second-degree price discrimination by the seller when there are groups of customers potentially heterogeneous in terms of the distribution of their reservation prices. Our work takes significant importance in the context of information goods, which are becoming increasingly prominent and are being delivered on the Web through the mechanisms of forward and spot buying.

Toward a Theory of Knowledge Reuse

Abstract: This paper represents a step toward a theory of knowledge reusability with emphasis on knowledge management systems and repositories, often called organizational memory systems. Synthesis of eviden...

Situated Learning and the Situated Knowledge Web

Abstract: Knowledge is now recognized as an important basis for competitive advantage and many firms are beginning to establish initiatives to leverage and manage organizational knowledge. These include effo...

General Perspectives on Knowledge Management

Abstract: We trace in pragmatic terms some of what we know about knowledge, information technology, knowledge management practice and research, and provide two complementary frameworks that highlight potenti...

Special Section: Economics, Electronic Commerce, and Competitive Strategy

Abstract: Eric K. Clemons is Professor of Operations and Information Management at The Wharton School of the University of Pennsylvania. He has been a pioneer in the systematic study of the transformational impacts of information on the strategy and practice of business. His research and teaching interests include strategic uses of information systems such as e-commerce, information economics, the changes that information technology enables in the competitive balance between new entrants and established industry participants, transformation of distribution channels, and the impact of information technology on the risks and benefits of outsourcing and strategic alliances. Industries of focus include international securities markets and financial services firms, consumer packaged goods retailing, telecommunications, and travel. He specializes in assessing the competitive implications of information technology and in managing the risks of large-scale implementation efforts. Additionally, Dr. Clemons is the founder and Project Director for the Reginald H. Jones Center's Sponsored Research Project on Information: Industry Structure and Competitive Strategy, founder and area coordinator the School's new major in Information: Strategy, Systems, and Economics, director of the School's new MBA e-commerce major, an active participant in the School's eCommerce Forum research program, and member of the Faculty Council of the SEI Center for Advanced Studies in Management. Dr. Clemons is currently a member of the editorial board of the Journal of Management Information Systems and the International Journal of Electronic Commerce. He has served on the Congressional Office of Technology Assessment study of securities markets and on the Quality of Markets Advisory Board of the London Stock Exchange. He serves on the advisory board of numerous e-commerce start-ups.