IT & Organizational
Performance:
An Integrative Model of
Business Value
Miniproject#2
MOIS 433
Presented by
Sara Maamoun
Presented to
Dr. Dina Rateb
About Review
 Authors:
 Nigel Melville
 Kenneth Kraemer
 Vijay Gurbaxani
 Journal:

 Vol.28 No.2/ June 2004
I. Introduction
Topic Overview
 IT Business Value
•
Impacts of IT on organizational performance
 Knowledge Perspectives & Computing Paradigms
•
Pre-Internet Era
–
–
•
Mainframes, minicomputers
Used for storing and processing information within one
organization
Network Era
–
–
Electronic linkages
Within & among multiple organizations
Objectives of Review
Develop a model of IT business value based in theory
and informed by existing IT business value research
Use the model to synthesize & unify what is known
about IT value
Guide future research by developing propositions
and putting forward a research agenda
II. IT Business Value
Research:
Definition
Conceptualizing Information
Technology
1. Tool View: IT viewed as an engineered tool doing what
its designers intended
2. Proxy View: Conceptualized by its essential
characteristics, which are defined by
a) Individual perception of its usefulness or value
b) Its investment or capital stock denominated in financial units
3. Ensemble View: Interaction of people and technology
in both the development and use of IT
Defining IT Business Value
Research
 IT Business Value refers to the
organizational performance impacts of
IT including
 Productivity enhancement
 Cost reduction
 Competitive advantage
 Inventory reduction and other measures of performance
 Formulations of performance
 Efficiency
 Effectiveness
III. Integrative Model of
IT Business Value
Theoretical Paradigms
Used in IT Business Value
Research
 Microeconomic Theory
 Industrial Organization Theory
 Sociology & Socio-Political
Perspectives
Chosen Theory base:
Resource-Based View of the
Firm
 RBV & IT Business Value
 Prior Models
 IT impacts orgnl. performance via intermediate business processes
 Other orgnl. resources such as workplace practices interact with
IT, whether as mediator or moderator, in the attainment if orgnl.
performance impacts.
 External environment plays a role in IT business value generation
 It is important to disaggregate the IT construct into meaningful
subcomponents
IT Business Value Model
Model Constructs
IBM IT Value Model
IV. Literature Synthesis
Research Questions
Summary of Propositions
Sources
 “IT & Organizational Performance:
An Integrative Model of Business Value.” MIS
Quarterly. PDF:
http://web.gsm.uci.edu/~gurbaxan/itbv.pdf
 “The IT Value Model: Winning the Business
“Battle” with the right IT “Nails””. IBM Global
Services. PDF:
 http://www-1.ibm.com/services/us/its/pdf/g510-3887-00.pdf
Thank You 