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A process-oriented perspective of IS success: Examining the impact of IS on operational cost

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  • Byrd, Terry Anthony
  • Thrasher, Evelyn H.
  • Lang, Teresa
  • Davidson, Nancy W.

Abstract

Effective measurement of information system (IS) success continues to be a top concern for both practitioners and researchers. Labeled the "productivity paradox", previous attempts to quantify the benefits of IS have often resulted in inconclusive or inconsistent results. The present study contributes to IS success research through the development and empirical testing of a process-oriented model of IS success. Using an operational perspective and combining primary and secondary measures, this study examines the influence of lower-level intangible IS and information technology (IT) benefits on higher-level financial measures. Additionally, we introduce IS plan quality as an antecedent to the model's input variables. Primary survey data from CIOs of primarily Fortune 2000 size firms are combined with secondary data, total operational cost, from Compustat to facilitate the examination of the IS benefits. This study also addresses shortcomings cited in other studies that might have contributed to the productivity paradox by including control variables in the model, defining a research perspective--the operational success perspective--and clearly articulating the level of analysis as the organizational level. The results supported a process-oriented view of the benefits from IS and showed how the effects of IS along a path can lead to better organizational performance, in this case, lower overall costs. These results are discussed and future research implications are presented.

Suggested Citation

  • Byrd, Terry Anthony & Thrasher, Evelyn H. & Lang, Teresa & Davidson, Nancy W., 2006. "A process-oriented perspective of IS success: Examining the impact of IS on operational cost," Omega, Elsevier, vol. 34(5), pages 448-460, October.
    • Handle: RePEc:eee:jomega:v:34:y:2006:i:5:p:448-460
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    References listed on IDEAS

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    Cited by:

    1. Kyu Kim, Kyung & Yul Ryoo, Sung & Dug Jung, Myung, 2011. "Inter-organizational information systems visibility in buyer-supplier relationships: The case of telecommunication equipment component manufacturing industry," Omega, Elsevier, vol. 39(6), pages 667-676, December.
    2. Lee, Sang-Yong Tom & Kim, Hee-Woong & Gupta, Sumeet, 2009. "Measuring open source software success," Omega, Elsevier, vol. 37(2), pages 426-438, April.
    3. Sung Yul Ryoo & Chulmo Koo, 2013. "Green practices-IS alignment and environmental performance: The mediating effects of coordination," Information Systems Frontiers, Springer, vol. 15(5), pages 799-814, November.
    4. Nils Urbach & Stefan Smolnik & Gerold Riempp, 2009. "The State of Research on Information Systems Success," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 1(4), pages 315-325, August.
    5. Morteza Ghobakhloo & Sai Hong Tang, 2015. "Information system success among manufacturing SMEs: case of developing countries," Information Technology for Development, Taylor & Francis Journals, vol. 21(4), pages 573-600, October.
    6. Badri Abbasi, 2017. "Relationship between Consumer Characteristics and Impulse Buying Behavior: The Mediating Role of Buying Intention of New Clothing Buyers," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 26-33.
    7. Pérez-Méndez, José Antonio & Machado-Cabezas, Ángel, 2015. "Relationship between management information systems and corporate performance," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 18(1), pages 32-43.
    8. Hermano, Víctor & Martín-Cruz, Natalia, 2016. "The role of top management involvement in firms performing projects: A dynamic capabilities approach," Journal of Business Research, Elsevier, vol. 69(9), pages 3447-3458.

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