Information technology resources,complementaries and capabilities : towards a deeper understanding of leveraging business value from IT

Organisations devote substantial resources to acquire information technology (IT), and explaining the important issue of how IT can affect performance has posed a significant challenge to information system (IS) researchers. Owing to the importance of expanding our understanding on how and where IT and IT-related resources impact organisational performance, this study investigates the differential effects of IT resources and IT-related capabilities, in the presence of platform-related complementarities, on business process performance. We test these relationships empirically via a field survey of 216 firms. The findings suggest that IT resources and IT-related capabilities explain variance in performance. Of interest is the finding that IT resources and IT-related capabilities ability to explain variance in business process is further enhanced by the presence of the platform-related complementarities. Our findings are largely consistent with the resource-based and complementarity arguments of sources of IT-related business value.

Information technology and business value: how complementary IT usage platform and capable resources explain IT business value variation

Understanding information technology’s (ITs) contribution to business value is an imperative issue, and while we have attempted to untangle the relationship between IT and business value with some success, our knowledge of specific factors leading to ITs contribution to business value still remains limited. In this paper we propose that complementing IT resources, by establishing a sound IT platform with capable organisational resources may aid in ITs ability to contribute to business value. We suggest that performance measurement of this contribution be undertaken at the business process level first, and then mapped through to firm level performance measurement to obtain a better understanding of the path of IT business value contribution.

Sourcing and evaluating IT business value in emerging economies : the case of the South Pacific Island Countries

Information Technology (IT) is an important resource that facilitates growth and development in both the developed and emerging economies. The increasing forces of globalization are creating a wider digital divide between the developed and emerging economies. The smaller emerging economies are the most venerable. Intense competition for IT resources means that these emerging economies would need to acquire a deeper understanding of how to source and evaluate their IT-related efforts. This effort would put these economies in a better position to source funding from various stakeholders. This research presents a complementary approach to securing better IT-related business value in organizations in the South Pacific Island countries – a case of emerging economies. Analysis of data collected from six South Pacific Island countries suggests that organizations that invest in IT and related complementaries are able to better their business processes. The data also suggest that improved business processes lead to overall business processes improvements.

ACE research vignette 007 : what is the value of entrepreneurship?

This series of research vignettes is aimed at sharing current and interesting research findings from our team and other international Entrepreneurship researchers. In this vignette, we summarise the findings from a paper written by Mirjam van Praag and Peter Versloot that examines the research relating to the value of entrepreneurship.

ACE research vignette 014 : how does networking contribute to the bottom line? - The value of purpose-driven networking

This series of research vignettes is aimed at sharing current and interesting research findings from our team and other international researchers. In this vignette, Dr Martie-Louise Verreynne from the University of Queensland Business School summaries the findings from a paper written in conjunction with Sarel Gronum and Tim Kastelle from the UQ Business School that examined if networking really contributes to small firms' bottom line. Their findings show that unless networks are used for productive means, efforts to cultivate and maintain them may be wasteful.

Leveraging value within IT-backed collaborative alliances

Organizations today make radical use of the IT resources to sustain or better their existing competitive position. One such initiative is forming alliances on a shared IT backbone with partners of their value chain. We term these alliances the collaborative organizational structures (COS). Regardless of the nature of engagement with IT resources, organizations will require unique competencies to obtain performance-differentiating value from these IT resources. In a collaborative environment, these competencies would be a result of the synergy between the alliances’ unique competences. We call these the inter-firm IT-related capabilities. The resource centric theoretical frameworks suggest a trajectory of competence development and the structure of inter-firm competencies, but does not inform on the nature of these competencies. We employ an interpretive design to suggest three inter-firm IT-related capabilities for IT-backed collaborative alliances. We discuss these capabilities in this research and suggest that their effectiveness be measured directly against the collaborative rent, and indirectly against the firm-level performance of the alliance partners. This forms a model of leveraging and evaluating value within IT-backed collaborative alliances.

Creating and evaluating IT-related business value in developing markets : part 1

There is no doubt that information technology (IT) resources are important for organisations in any jurisdiction to manage their processes. Organisations consume considerable financial resources to acquire and manage their IT resources with various IT governance structures. Investment in IT, thus, is a strategic necessity. IT resources, however, do not contribute fully to business value on their own. Business value considers performance impacts of resources at various organisational levels (e.g., processes and firm levels). ITs are biased resources in that they require some form of manipulation to attain their maximum value. While we know that IT resources are important, a deeper understanding on two aspects of use of IT resources in organisations is important. First, is how to leverage the IT resources to attain its maximum value, and second, is where to evaluate IT-related business value in the organisation’s value chain. This understanding is important for organisation to sustain their operations in an ever-changing business environment. We address these issues in two parts. This paper discusses the first aspect of ways in which organisations can create and sustain their IT-related business value.

Creating and evaluating IT-related business value in developing markets - Part 2

A deeper understanding on two aspects of use of IT resources in organisations is important to ensure sustainable investment in these IT resources. The first is how to leverage the IT resources to attain its maximum value. We discussed this aspect of use of IT resources in part 1 of this series. This discussion suggested a complementary approach as a first stage of IT business value creation, and dynamic capabilities approach to secure sustainable IT-related business value from the IT resources. The second important aspect of IT business value is where to evaluate IT-related business value in the organisations value chains. This understanding is important for organisations to ensure appropriate accountability of the investment and management of IT resources. We address this issue in this second part of the two part series.

Investigating the potential value of individual parameters of histological grading systems in a sheep model of cartilage damage : the modified Mankin method

A total histological grade does not necessarily distinguish between different manifestations of cartilage damage or degeneration. An accurate and reliable histological assessment method is required to separate normal and pathological tissue within a joint during treatment of degenerative joint conditions and to sub-classify the latter in meaningful ways. The Modified Mankin method may be adaptable for this purpose. We investigated how much detail may be lost by assigning one composite score/grade to represent different degenerative components of the osteoarthritic condition. We used four ovine injury models (sham surgery, anterior cruciate ligament/medial collateral ligament instability, simulated anatomic anterior cruciate ligament reconstruction and meniscal removal) to induce different degrees and potentially 'types' (mechanisms) of osteoarthritis. Articular cartilage was systematically harvested, prepared for histological examination and graded in a blinded fashion using a Modified Mankin grading method. Results showed that the possible permutations of cartilage damage were significant and far more varied than the current intended use that histological grading systems allow. Of 1352 cartilage specimens graded, 234 different manifestations of potential histological damage were observed across 23 potential individual grades of the Modified Mankin grading method. The results presented here show that current composite histological grading may contain additional information that could potentially discern different stages or mechanisms of cartilage damage and degeneration in a sheep model. This approach may be applicable to other grading systems.

Creating value in project management using PRINCE2

This important research is published at a critical time in the history of PRINCE2. The world’s project managers are under incredible scrutiny and pressure to ensure their projects deliver quality on time and on budget – and even more so during a world recession. The research shows that PRINCE2 goes a long way to helping them achieve these goals. Although its origins began in the UK, PRINCE2 now has a truly international reach. We are delighted that the Queensland University of Technology (QUT) has undertaken this global, thorough and informative research project. While it highlights the strengths of the methodology itself, the report also looks at the challenges organisations face when using a project management method such as PRINCE2. We’re sure the challenges will resonate with project managers around the world. Securing executive support to champion the adoption of PRINCE2, creating a robust business case and prioritising project governance are key issues that all project managers will grapple with during their career. The research also shows that to be thoroughly effective, organisations need to properly embed PRINCE2 and tailor it to suit their particular circumstances. Many successful organisations have sought the effective help of accredited consulting organisations to assist them in developing a programme to tailor and inculcate this method into their organisational culture. The latest version incorporates a whole chapter on tailoring PRINCE2. We believe that the publication of PRINCE2 Directing Successful Projects using PRINCE2 and the development of further support in the form of materials, mentoring and training for senior executives will be of significant benefit to contemporary project based organisations. The APM Group has already developed a qualification for sponsors in conjunction with the UK’s Home Office to help with this.

Nonprofit organisations and value added (GST) taxation

The subject of this paper is the changes in the taxation of non-profit organisations which seem to be more or less inherent in the value added taxes. The Australian federal Coalition's proposed goods and services tax will be part of the discussion.

The "free-factor" impact on value in health services

Purpose - This paper seeks to understand the impact of financial cost on customer value in health prevention services by comparing free government services with private fee-charging providers. This is important as there is a common belief that a free health service is of lower quality and thus lower value than a paid service. However there is no evidence to verify this notion. Design / Methodology / Approach - A large-scale online survey was administered nationwide to Australian women. The respondents were asked about the functional and emotional value derived from their service experiences. Findings - Structural equation modelling (SEM) revealed non significant relationships between fee/free services and functional and emotional value (FV/EV). The non-significant relationship with FV is contrary to the theory of price quality relationship in services. This could be attributed to consumer perceptions that the technical quality of health professionals is comparable across free and paid services. The non-significant relationship with EV could be explained by the indicators used to reflect EV. These indicators were reflective of breast screening behaviour, not breast screening services. Subsequently, it may be posited that the act of having a breast screen is sufficient for consumers to derive emotional value, regardless of the financial cost. Originality / Value - This research fills an important gap in the literature by investigating the impact of financial cost on a service that consumers use proactively(prevention), rather than reactively (treatment). Insights are provided into the impact of cost on customer value in preventive health services, which are valuable to social marketing academics, health practitioners, and governments