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Open Access
Article
Publication date: 12 April 2024

Aleš Zebec and Mojca Indihar Štemberger

Although businesses continue to take up artificial intelligence (AI), concerns remain that companies are not realising the full value of their investments. The study aims to…

2462

Abstract

Purpose

Although businesses continue to take up artificial intelligence (AI), concerns remain that companies are not realising the full value of their investments. The study aims to provide insights into how AI creates business value by investigating the mediating role of Business Process Management (BPM) capabilities.

Design/methodology/approach

The integrative model of IT Business Value was contextualised, and structural equation modelling was applied to validate the proposed serial multiple mediation model using a sample of 448 organisations based in the EU.

Findings

The results validate the proposed serial multiple mediation model according to which AI adoption increases organisational performance through decision-making and business process performance. Process automation, organisational learning and process innovation are significant complementary partial mediators, thereby shedding light on how AI creates business value.

Research limitations/implications

In pursuing a complex nomological framework, multiple perspectives on realising business value from AI investments were incorporated. Several moderators presenting complementary organisational resources (e.g. culture, digital maturity, BPM maturity) could be included to identify behaviour in more complex relationships. The ethical and moral issues surrounding AI and its use could also be examined.

Practical implications

The provided insights can help guide organisations towards the most promising AI activities of process automation with AI-enabled decision-making, organisational learning and process innovation to yield business value.

Originality/value

While previous research assumed a moderated relationship, this study extends the growing literature on AI business value by empirically investigating a comprehensive nomological network that links AI adoption to organisational performance in a BPM setting.

Article
Publication date: 16 July 2024

Chae-Lin Lim, Woo-Jin Jung, Yea Eun Kim, Chanyoung Eom and Sang-Yong Tom Lee

This research investigates the differential impact of information technology (IT) investments based on their features, such as investment in data management capability, security…

Abstract

Purpose

This research investigates the differential impact of information technology (IT) investments based on their features, such as investment in data management capability, security improvement, IT outsourcing or new IT infrastructure. The Long-Horizon Event Study (LHES) is essential for providing a more appropriate measure of the value of IT investments because firms' strategic decisions often set long-horizon and large-scale organizational goals, and there is inherent uncertainty regarding future cash flows resulting from these investments. Therefore, the authors aim to analyze how announcements of IT investments affect the firm's abnormal stock returns over the long term and to compare the differential impact of different features of IT investment.

Design/methodology/approach

The authors gathered IT investment announcements and stock data of listed firms in Korea between 2000 and 2018, and the monthly stock market returns over the 5 years after the announcements. To measure the differential impact of IT investments based on the investment features, the authors separate announcements data into five groups. A LHES is used to estimate the long-term effects of IT investment announcements.

Findings

The results indicate that announcements of IT investments had a long-term positive effect on firm performance. Additionally, the findings reveal differential effects of IT investments across industries and investment features. Notably, news of self-developed IT investments and IT investments in the manufacturing industry had significantly positive effects. However, contrary to common belief, announcements of investments in so-called essential IT areas such as data, security, or new IT infrastructure did not yield significant effects.

Originality/value

Although the need for LHES has been emphasized in information systems research, few follow-up studies have been conducted since Barua and Mani (2018). This is primarily due to the challenges associated with collecting large-scale abnormal stock returns data over a long horizon. This research represents the first LHES to investigate the differential impact of IT investments based on their features. By doing so, this study can provide valuable insights for decision-makers within firms, helping them understand the time horizon of market outcomes of IT investments based on their features. Furthermore, this work extends the scope of LHES to comprehend the differential impacts of investment features. For instance, managers need to grasp that so-called essential IT investments, such as data management, security enhancements or new IT infrastructure, may not necessarily generate long-term market value.

Details

Industrial Management & Data Systems, vol. 124 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 22 November 2023

Salameh A. Mjlae

The purpose of this study is to investigate the value of cloud computing adoption (CCA) as a proxy for information technology (IT) flexibility (ITF) and IT effectiveness (ITE…

Abstract

Purpose

The purpose of this study is to investigate the value of cloud computing adoption (CCA) as a proxy for information technology (IT) flexibility (ITF) and IT effectiveness (ITE) among Small- and medium-sized enterprises (SMEs) in Jordan.

Design/methodology/approach

A research framework with five hypotheses has been developed based on the results of previous studies. Partial least squares-structural equation modeling has been used for data analysis.

Findings

The results revealed that elements of ITF in two domains, IT technical resource (connectivity, modularityand compatibility) and IT human resource (IT personnel skills) specific to CCA, were significantly correlated with ITE.

Research limitations/implications

The findings have crucial implications: they contribute to the research community, administrators and cloud computing providers (CSPs) concerning the framework-improved procedure for CCA. The proposed model can enhance the awareness of service providers about why some SMEs accept cloud computing services, whereas actually the same ones having the same type of business do not. In addition, the above providers should enhance their interaction with the SMEs that contributed to the cloud computing knowledge to make a well-organized setting for the CCA, specifically, SMEs need that adopt an on-premise private cloud architecture. Moreover, necessary to determine the challenges in deploying solutions from the perspective of CSPs. The sample has been limited to Jordan respondents.

Practical implications

The research studies about the usage of cloud computing have shown its effects on SMEs today. Also, the different impacts of cloud computing on other sectors are at the center of attention. SMEs could get significant advantages by carefully considering and managing CCA from the ITF and ITE perspective.

Originality/value

To the best of the author’s knowledge, this is the first study to develop a framework for CCA based on the standpoint of ITF in two domains, IT technical resources (connectivity, modularity and compatibility) and IT human resources (IT personnel skills) and effectiveness.

Details

Information Discovery and Delivery, vol. 52 no. 3
Type: Research Article
ISSN: 2398-6247

Keywords

Article
Publication date: 20 September 2024

Javier Santiago Cortes Lopez, Guillermo Rodriguez Abitia, Juan Gomez Reynoso and Angel Eduardo Muñoz Zavala

This qualitative study aims to fill gaps in a widely studied and relevant organizational feature: the alignment between information technologies and business strategies.

Abstract

Purpose

This qualitative study aims to fill gaps in a widely studied and relevant organizational feature: the alignment between information technologies and business strategies.

Design/methodology/approach

This research is a qualitative study. The authors used focus groups, content analysis and semantic networks as research approaches to identify the main factors that prevent or foster such alignment.

Findings

Results reveal a leading role of innovation, organizational culture, access to information and financial factors that could promote or inhibit alignment and competitiveness.

Originality/value

This research was conducted only in small and medium organizations in Mexico, which represents about 52% of the Mexican Gross Domestic Product (for Mexico as one of the leading trade partners of the USA).

Details

Measuring Business Excellence, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 4 June 2024

Leandro Feitosa Jorge, Elaine Mosconi and Luis Antonio de Santa-Eulalia

In response to the growing need for organizations to enhance their digital capabilities and the widespread adoption of enterprise social media (ESM) in the workplace, researchers…

Abstract

Purpose

In response to the growing need for organizations to enhance their digital capabilities and the widespread adoption of enterprise social media (ESM) in the workplace, researchers have extensively studied the effects of ESM on various organizational outcomes. Nonetheless, a notable theoretical gap exists regarding the influence of ESM on the development of organizational digital maturity. This paper aims to bridge this gap by conducting a comprehensive literature review to investigate how the utilization of ESM can facilitate the transformation of organizational value-creation processes, thereby contributing to the overall enhancement of digital maturity.

Design/methodology/approach

Using the information technology (IT) value-creation framework developed by Mooney et al. (1996) and applying a template analysis methodology as outlined by King (2012), the authors conducted a systematic literature review (Okoli and Schabram, 2010), to investigate the influence of ESM on value creation within the digital business environment.

Findings

The study’s outcomes are structured around a theoretical framework that combines the contingency theory and the sociotechnical perspective to provide a comprehensive understanding of digital maturity. This paper also delves into how ESM facilitates the transformation of organizational value-creation processes, ultimately contributing to the overall progress of their digital maturity.

Research limitations/implications

This study adapts existing theoretical models to fit the context of ESM and integrates multiple perspectives to provide a comprehensive understanding of its impact. It identifies a convergence in the definition of ESM and offers insights into its various dimensions and effects on value creation. Hence, scholars can use the identified theoretical frameworks and conceptual convergence to guide future investigations into the impact of ESM on value creation, fostering theoretical development and empirical research. Practitioners can benefit from the insights to develop effective strategies for implementing ESM within their organizations, aligning with broader organizational objectives to enhance performance, streamline operations and drive structural changes. Furthermore, both scholars and practitioners can use the identified limitations of the study to identify areas for further improvement and exploration, thus contributing to the advancement of knowledge and practice in ESM and value creation. Limitations of this research include the exclusion of gray literature, a relatively small sample size of analyzed articles, and the restriction to specific databases as per systematic review guidelines, potentially overlooking valuable contributions from alternative sources.

Practical implications

This paper provides a comprehensive exploration of how ESM can support value-creation processes within organizations. It offers valuable insights to help managers incorporate ESM into their digital strategies and to understand its value-creation effects.

Originality/value

Adopting a value-creation perspective and integrating the contingency theory and the sociotechnical perspective to build a comprehensive framework, this research introduces an original approach by showcasing how ESM can facilitate shifts in value-creation processes of organizations, paving the way to contribute to the development of their digital maturity.

Details

Journal of Systems and Information Technology, vol. 26 no. 3
Type: Research Article
ISSN: 1328-7265

Keywords

Article
Publication date: 15 July 2024

Cheng-Kui Huang and Yu-Hsin Cheng

Digital transformation (DT) has great potential to improve operations and stimulate business growth. It has attracted widespread attention from businesses around the world…

Abstract

Purpose

Digital transformation (DT) has great potential to improve operations and stimulate business growth. It has attracted widespread attention from businesses around the world. However, firm performance in DT implementation (DTI) cannot be neglected. This study examines the benefits and costs of DT and its effects on operations and financial performance of DT.

Design/methodology/approach

Based on the financial report data from S&P 500 firms, we measure the financial performance, productivity and market value of DTI with a baseline in 2020. In addition, we collect secondary data to construct linear regression models for three dummy variables, including DT adopters, first movers and better performers.

Findings

Empirical results demonstrate that digitally transformed firms are positively correlated with business performance, while the performance among first movers has a partially positive impact. DT has also had a significant impact on long-term performance as shown by our long-term observations. Empirical findings indicate that DT has varying impacts on organizational performance in different dimensions and provides DT target-setting guidance to enterprises.

Originality/value

There are no studies so far that could proffer certain evidence to reveal the influence of DTI on firm performance. Such evidence is necessary for managers to convince their investors and stakeholders to believe that DTI can create new revenue for enterprises.

Details

Managerial Finance, vol. 50 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 1 June 2022

Adeyl Khan, Md. Shamim Talukder, Quazi Tafsirul Islam and A.K.M. Najmul Islam

As businesses keep investing substantial resources in developing business analytics (BA) capabilities, it is unclear how the performance improvement transpires as BA affects…

1094

Abstract

Purpose

As businesses keep investing substantial resources in developing business analytics (BA) capabilities, it is unclear how the performance improvement transpires as BA affects performance in many different ways. This paper aims to analyze how BA capabilities affect firms’ agility through resources like information quality and innovative capacity considering industry dynamism and the resulting impact on firm performance.

Design/methodology/approach

This paper tested the research hypothesis using primary data collected from 192 companies operating in Bangladesh. The data were analyzed using partial least squares-based structural equation modeling.

Findings

The results indicate that BA capabilities improve business resources like information quality and innovative capacity, which, in turn, significantly impact a firm’s agility. This paper also found out that industry dynamism moderates the firms’ agility and, ultimately, firms’ performance.

Practical implications

The contribution of this work provides insight regarding the role of business analytics capabilities in increasing organizational agility and performance under the moderating effects of industry dynamism.

Originality/value

The present research is to the best of the authors’ knowledge among the first studies considering a firm’s agility to explore the impact of BA on a firm’s performance in a dynamic environment. While previous researchers discussed resources like information quality and innovative capability, current research theoretically argues that these items are a leveraging point in a BA context to increase firm agility.

Details

VINE Journal of Information and Knowledge Management Systems, vol. 54 no. 5
Type: Research Article
ISSN: 2059-5891

Keywords

Article
Publication date: 31 July 2024

Khawaja Saeed, Manoj Malhotra and Sue Abdinnour

The purpose of this paper is to examine the role that information systems (IS) artifacts (IS for automation and IS for analytics) and process standardization play in enhancing…

Abstract

Purpose

The purpose of this paper is to examine the role that information systems (IS) artifacts (IS for automation and IS for analytics) and process standardization play in enhancing different dimensions of supply chain agility (SCA) (sensing, comprehending and responding).

Design/methodology/approach

Data collected through the survey approach was used to examine the research model. The results were analyzed based on regression analysis. Various tests were conducted to validate the results of the mediation hypotheses.

Findings

The results show that IS for analytics has a significant association with all dimensions of SCA and mediates the relationship between IS for automation and SCA’s sensing and comprehending dimensions. In addition, process standardization directly and uniquely influences the comprehending and responding dimensions of SCA.

Research limitations/implications

The assessment of the relationship between different IS features in the context of SCA enhancement contributes to theory development in the area of IS-enabled supply chains. Furthermore, investing in both process and IS-related initiatives offers unique value in the context of supply chains. The data collection approach limited us to a cross-sectional analysis, whereas longitudinal data could have offered deeper insights.

Practical implications

IS artifacts and process-based initiatives can be leveraged for organizational capability enhancement. Organizations that are vigilant, analysis driven and take quick actions, invest in IS-based tools that support analytics. The highest impact of these tools is visible in the enhancement of the comprehending dimension of SCA.

Originality/value

Prior research does not explicitly examine the interplay among the different IS artifacts. Furthermore, process-centric initiatives can also be used in conjunction with or as an alternative to IS-based initiatives. The originality of this work stems from jointly evaluating the role of IS artifacts and process standardization in making the supply chain more agile.

Details

Journal of Systems and Information Technology, vol. 26 no. 3
Type: Research Article
ISSN: 1328-7265

Keywords

Open Access
Article
Publication date: 4 July 2024

Bart Lameijer, Elizabeth S.L. de Vries, Jiju Antony, Jose Arturo Garza-Reyes and Michael Sony

Many organizations currently transition towards digitalized process design, execution, control, assurance and improvement, and the purpose of this research is to empirically…

Abstract

Purpose

Many organizations currently transition towards digitalized process design, execution, control, assurance and improvement, and the purpose of this research is to empirically demonstrate how data-based operational excellence techniques are useful in digitalized environments by means of the optimization of a robotic process automation deployment.

Design/methodology/approach

An interpretive mixed-method case study approach comprising both secondary Lean Six Sigma (LSS) project data together with participant-as-observer archival observations is applied. A case report, comprising per DMAIC phase (1) the objectives, (2) the main deliverables, (3) the results and (4) the key actions leading to achieving the presented results is presented.

Findings

Key findings comprise (1) the importance of understanding how to acquire and prepare large system generated data and (2) the need for better large system-generated database validation mechanisms. Finally (3) the importance of process contextual understanding of the LSS project lead is emphasized, together with (4) the need for LSS foundational curriculum developments in order to be effective in digitalized environments.

Originality/value

This study provides a rich prescriptive demonstration of LSS methodology implementation for RPA deployment improvement, and is one of the few empirical demonstrations of LSS based problem solving methodology in industry 4.0 contexts.

Details

Business Process Management Journal, vol. 30 no. 8
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 4 June 2024

Lu Yang, Baofeng Huo and Yuxiao Ye

This study aims to empirically test the direct effects of three types of information technology (IT) use on three dimensions of supply chain coordination (SCC). It further…

Abstract

Purpose

This study aims to empirically test the direct effects of three types of information technology (IT) use on three dimensions of supply chain coordination (SCC). It further explores the spillover effects of IT use on coordination beyond its domain across the SC. Besides, this study probes into the moderating effects of environmental uncertainty (EU).

Design/methodology/approach

Structural equation modelling (SEM) is used to examine data collected from 202 firms in Hong Kong. Furthermore, multi-group SEM analysis with a series of invariance tests was used to test the moderating effects of EU.

Findings

Internal, supplier and customer IT use have direct effects on internal, supplier and customer coordination, respectively. Besides, IT use generates forward spillover effects beyond its domain along the forward physical flow in an SC. EU positively moderates the relationships between external IT use and SCC but does not shape the effectiveness of internal IT use in enhancing SCC. Moreover, under a high EU, the spillover effects of IT use on coordination can be intensified. Besides, the spillover effects further expand to benefit coordination on a larger scale of the SC under a high EU.

Originality/value

This study contributes by revealing that in addition to direct effects, IT use in a specific domain could generate spillover effects on coordination beyond its domain throughout an SC. More importantly, it contributes by explaining the difference in the effectiveness of IT use under different levels of EU using multi-group SEM analysis.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

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