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    Matching business strategy and CIOcharacteristics: The impact on organizationalperformanceYan Li a, Chuan-oo Tan

    !bstractThis paper examines the match between chiefnformation ocer (CIO) characteristics and theorganization'sbusiness strategy and how this match inuences the

    organization's business performance !ased on thetheoretica" underpinnings of typo"ogies of businessstrategy# a"ignment between IT strategy and businessstrategy and upper eche"on theory# this studyproposes a research mode" This study uses sur$eydata from%& CIOsIT managers to test the mode" empirica""yThe resu"ts indicate that a match between businessstrategyand CIOs of certain repertoires of competencies#experiences and persona"ities cou"d "ead to betterorganizationa"performance The business performance inmatched organizations is signi*cant"y better thanthat inmismatched ones

    "#$#"# Tenure+pper eche"on theory a"so imp"ies that years of insideser$ice by CIOsare negati$e"y re"ated to strategic choice in$o"$ingchanges ,re$iousresearch has indicated that "eaders tend to becomemore conser$ati$e

    toward changes as their tenure increases (-artina#.incent# / .irginia#0112) This is because as the years of tenurencrease# the CIOs mayha$e more psycho"ogica" commitment to theorganizationa" status3uo (4taw / 5oss# &6%1) and become more strong"ycommitted tomp"ementing their own paradigms of how the ITstrategy shou"d berun (7ambric8 / 9u8utomi# &66&) 9urthermore# "ongtenure cou"dresu"t in insu"ation and a narrowing of the CIO's

    perspecti$e (,fe:er#&6%;)

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    7&b CIOs of prospectors ha$e shorter tenure in theorganizationthan CIOs of defenders

    "#$#$# &ducational le(elnferring from upper eche"on theory (7ambric8 /-ason# &6%J)#this study proposes that the amounts of forma"education CIOs ha$ehad are positi$e"y associated with inno$ati$eness andexibi"ity inT strategy in organizations ,rior studies (eg#Kimber"y / ?$anis8o#&6%&) a"so indicate that higher "e$e"s of education areassociatedwith a person's abi"ity to generate and imp"ementcreati$e so"utionsto comp"ex prob"ems This abi"ity may exp"ain whypeop"e who aremore educated ha$e higher tendency to possess amore exib"e andrecepti$e attitude toward inno$ation (Kimber"y /?$anis8o# &6%&)The association between educationa" "e$e" and bothcogniti$e abi"ityand attitudes toward inno$ation may suggest thatCIOs with a highereducationa" "e$e" are more "i8e"y to adopt IT

    strategies that are inno$ati$eand exib"eLfeatures consistent with prospectors'business needs for ITstrategy In contrast# researches associate "esseducated CIOs with moreconser$ati$e# ris8=a$erse IT strategiesLfeaturesconsistent with thedefenders' business needs for IT strategy (Thomas /5amaswamy# &662)7&c CIOs of prospectors ha$e higher "e$e" ofeducation than CIOsof defenders

    "#)# *ersonality traits of CIO and businessstrategyMhi"e the upper eche"on perspecti$e has attractedtremendous attentionfrom academics in the "ast two decades# se$era"organizationa"beha$iora" researchers ha$e a"so noted itsnade3uacy in teasing outthe true exp"anations for the e:ects obser$ed indemographic=strategic choice re"ationships (eg#

    ,apada8is / !ourantas# &66%) ?$en thoughsome researchers (eg# 9in8e"stein / 7ambric8# &661)continue to fa$ordemographic characteristics because of theirob@ecti$ity and ease of measurement#others (eg#

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    characteristics per se are un"i8e"y to inuencestrategicprocesses and outcomes 9urthermore# they $iewpersona"ity dimensionsas better predictors of decision=ma8ing beha$ior# andha$e pro$ided e$idencethat persona"ity $ariab"es are especia""y usefu" inpredicting strategiesn IT inno$ation To address this contention# this studyexamines both

    demographic characteristics and persona"ity traits ofthe CIO as potentia"sources of inuence on the organizationa" businessstrategy,re$ious studies examining the re"ationship betweenthe executi$e'spersona"ity characteristics and the organization'sstrategy often focus ontraits such as need for achie$ement# "ocus of contro"#exibi"ity# ris8ta8ingpropensity# dogmatism# persuasi$eness# andto"erance of ambiguity(7owe"" / 7iggins# &661> -i""er / Tou"ouse#&6%2) The persona"ity traits examined in thesepapers do not fo""ow aspeci*c taxonomy> hence# they do not comp"ete"yencompass a"" the attributesthat cou"d potentia""y dri$e an organization's strategyn addition#some conceptua" o$er"aps among se$era" attributesare discussed in thepapers (,apada8is / !ourantas# &66%) 7ence# thisstudy adopts the !ig9i$e taxonomy (igman# &661) to ana"yze the

    persona"ity traits of a CIOCosta and -cCrae (&660) argue that it is possib"e togenera"ize tothe fu"" range of persona"ity traits on"y if acomprehensi$e taxonomyof persona"ity is examined 4e$era" "ines of e$idencesuggest that the!ig 9i$e mode" pro$ides such taxonomy (igman /nouye# &6%2)5esearchers (!arric8# -ount# / Pudge# 011&) a"soconsider this taxonomythe most $a"uab"e in persona"ity research# most"ybecause of the

    rep"icabi"ity of the *$e factor structure acrossdi:erent theoretica"framewor8s# using di:erent assessment approachesnc"uding 3uestionnairesand "exica" data# in di:erent cu"tures# emp"oyingdi:erentanguages# and using ratings from di:erent sources(igman /4hme"yo$# &662)The *rst dimension# extra$ersion# consists ofsociabi"ity# positi$eemotiona"ity# ambition and excitement=see8ing Thesecond dimension

    s neuroticism G person who is high in neuroticismtends to beof a high "e$e" of insecurity# is suspicious and "ow inse"f=con*denceThe third dimension is agreeab"eness# which is thetrait of simp"ybeing easier to get a"ong with The fourth dimension

    a*rmaciAn# este estudio examina tantocaracterBsticas demogrF*cas y "os rasgos depersona"idad de" CIO como potencia"fuentes de inuencia en "a estrategia de negocio de"a organizaciAn?studios pre$ios 3ue examinaron "a re"aciAn entre e"e@ecuti$o decaracterBsticas de "a persona"idad y "a estrategia de "aorganizaciAn menudo se centran enrasgos como "a necesidad de "ogro# "ocus de contro"#

    "a exibi"idad# "a toma de riesgospropensiAn# e" dogmatismo# "a persuasiAn y "ato"erancia a "a ambigQedad(7owe"" y 7iggins# &661> -i""er y Tou"ouse#%2) ,or "o tanto# no abarcancomp"etamente todos "os atributos3ue podrBa potencia"mente conducir "a estrategia deuna organizaciAn ?n adiciAn#a"gunos so"apamientos conceptua"es entre $ariosatributos se discuten en e"pape"es (,apada8is y !ourantas# &66%) ,or "o tanto#este estudio adopta e" !igCinco taxonomBa (igman# &661) para ana"izar "osrasgos de persona"idad de un CIOCosta y -cCrae (&660) sostienen 3ue es posib"egenera"izar atoda "a gama de rasgos de persona"idad sA"o si unataxonomBa exhausti$ade "a persona"idad se examina .arias "Bneas dee$idencia sugieren 3ue "aRran mode"o Cinco ofrece ta" taxonomBa (igman yInouye# &6%2)

    In$estigadores (!arric8# e" monte# y e" @uez# 011&)tambiDn consideran esta taxonomBae" mFs $a"ioso en "a in$estigaciAn de "a persona"idad#sobre todo debido a "arep"icabi"idad de "a estructura de cinco factores atra$Ds de diferentes teAricomarcos# uti"izando diferentes enfo3ues de e$a"uaciAn3ue inc"uye cuestionarios y datos "Dxicas# en "asdiferentes cu"turas# emp"eando diferentesidiomas# y uti"izando ca"i*caciones de diferentesfuentes (igman y4hme"yo$# &662)

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    s conscientiousness#which characterizes a person who is responsib"e#dependab"e#persistent# organized# thorough and oriented towardwor8 The "astdimension is openness# which describes a person whos imaginati$e#creati$e# curious# uncon$entiona"# broad=minded# andad$enturous(Costa / -cCrae# &660) The focus of this study wi""

    be on openness#extra$ersion and conscientiousness# which are themost re"e$ant instrategic formation beha$ior (!arric8 et a"# 011&)

    "#)## Openness,re$ious empirica" studies show a strong re"ationshipbetweenopenness and propensity toward inno$ation Inferringfrom thestudy of Kets e .ries and -i""er (&6%J)# one maysuggest that CIOswho are "ow in openness# and who are inexib"e# rigidandunadapti$e are often associated with IT strategiesthat are extreme"ynexib"e and anachronistic as the CIOs' insu"artendencies causethem to ignore en$ironmenta" conditions (-i""er /Tou"ouse# &6%2)Con$erse"y# CIOs with high openness see8 out newnformation

    Their strategies are responsi$e to the en$ironmentThey emphasizereacting and adapting to changing conditions throughnno$ationand exibi"ity 9rom another aspect of openness#which is being ad$enturousand ris8=ta8ing# the study of

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    some commentthat managers need to more systematica""y and morecarefu""y managet compared with norma" tas8s (see eg# !essant#Ca:yn# /Ri"bert# &662) CIOs high in conscientiousness mayfee" more competentand comfortab"e in ta8ing up such 8ind of tas8sbecause they areready for cha""enges# and they wou"d pursue a goa"

    fo""owing a detai"edp"an and schedu"e To the degree that openness andextra$ersionn the CIO's persona"ity are essentia" to the strategic$ision of nno$ati$e and exib"e IT strategy# conscientiousnesss centra" tothe operationa"ization of the $ision fu"" ofuncertainties through p"anning#commitment and perse$erance In the fast changingT wor"d#ha$ing the conscientiousness characteristic wou"d bean importanttrait of a prospector CIO Therefore CIOs with highe$e" of conscientiousnessare more suitab"e for prospectors than for defenders7&f CIOs of prospectors possess higher "e$e" ofconscientiousnessthan CIOs of defenders

    "#1# *erformance bene3t of match bet4een CIOand business strategy

    CIO characteristics# both demographics andpersona"ity# are "i8e"y toa:ect the organization's IT strategy (4ma"tz et a"#0112> ay"a / 7u#011%)# which in turn needs to match theorganization's business strategy(Kearns# 0112) Gn organization that has a CIO whosecharacteristics *t the re3uirements of theorganization's business strategy (eg# a prospectorwith a younger# more open and more extra$ertedCIO) wi"" ha$ea better match between IT and business strategy#which wi"" in turn

    bene*t organizationa" performance in terms ofemp"oyee producti$ity#operationa" eciency# operationa" cost# customersatisfaction# re"ationshipswith partners# re$enue# pro*t and mar8et share(4abherwa" /Chan# 011&)70a The business performance of prospectors thatachie$e amatch between CIO characteristics and businessstrategy exceedsthe performance of those that do not70b The business performance of defenders that

    achie$e a matchbetween CIO characteristics and business strategyexceeds the performanceof those that do not

    $# 5esearch methodThis study adopts sur$ey method to test the research

    el CIO y estrategia de negociosCaracterBsticas CIO# tanto "a demografBa y de "apersona"idad# es probab"e 3ueafectar a "a estrategia de TI de "a organizaciAn(4ma"tz et a"# 0112> ay"a y 7u#011%)# 3ue a su $ez tiene 3ue coincidir con "aestrategia de negocio de "a organizaciAn(Kearns# 0112) +na organizaciAn 3ue tiene un CIOcuyas caracterBsticas adaptarse a "os re3uisitos de "aestrategia de negocio de "a organizaciAn (por

    e@emp"o# un buscadorcon un CIO mFs @o$en# mFs abierta y mFsextra$ertido) tendrFuna me@or correspondencia entre "a TI y "a estrategiade negocio# 3ue a su $ezbene*ciar e" desempeEo organizaciona" en tDrminosde producti$idad de "os emp"eados#e*ciencia operati$a# costos operati$os# "a satisfacciAnde" c"iente# re"aciones con "os socios# ingresos#bene*cios y cuota de mercado (4abherwa" y Chan#011&)70a ?" desempeEo de" negocio de "os buscadores3ue "ograr uncoincidencia entre "as caracterBsticas CIO y estrategiade negocio supera e" rendimiento de "os 3ue no "ohacen70b ?" rendimiento de" negocio de "os defensores de3ue "ogren un partido entre "as caracterBsticas de" CIOy "a estrategia de negocio supera e" rendimientode "os 3ue no "o hacen

    $# M6todo de in(estigaci0n?ste estudio adopta mDtodo de encuesta para ponera prueba e" mode"o de in$estigaciAn por3ue

    3ue proporciona una base para e" estab"ecimiento degenera"izar# permite rep"icabi"idad#y tiene e" poder estadBstico GsociaciAn de RestiAn de TI (IT-G)hace suya "a encuesta ?s una organizaciAn sin *nesde "ucro inuyente en Gsiacon una base de suscriptores signi*cati$o deprofesiona"es y directi$os de TI

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    mode" becauset pro$ides a basis for estab"ishing genera"izabi"ity#a""ows rep"icabi"ity#and has statistica" power IT -anagement Gssociation(IT-G)endorses the sur$ey It is an inuentia" non=pro*torganization in Gsiawith a signi*cant subscriber base of IT professiona"sand managersThe operationa"ization of demographic $ariab"es is

    main"y adaptedfrom !ar8er and -ue""er (0110) This study measuresCIO age by as8ingrespondents to indicate the age range to which theybe"ong In this way#t is possib"e to minimize the discomfort thatrespondents might experiencewhen responding to sensiti$e 3uestions such as theirage Thisstudy measures educationa" "e$e" by as8ingrespondents to pro$idethe highest degree they ha$e obtained (& U ip"oma>0 U !ache"or>; U -aster> J U ,h> and S U others) 5esponsescontaining Othersare re=coded as & without "oss of genera"ity becausethese respondentson"y ha$e high schoo" 3ua"i*cations This studyassesses tenure byas8ing how many years the respondents ha$e been inthe position of CIO or 7ead of IT in his current organization ofa"iation,ersona"ity $ariab"es are adapted from thenternationa" ,ersona"ity

    tem ,oo" (httpipiporiorgipip) !ecause the poo"of persona"ityconstructs (openness# extra$ersion andconscientiousness) contains toomany items (about ;1> see Gppendix ! for the fu""sca"e and se"ectedtems)# and using a"" of them wi"" ma8e the3uestionnaire unbearab"yong# this study co""ects data from &S1 -anagementof Information4ystems (-I4) undergraduates to trim thenstruments for each of thepersona"ity constructs The authors app"y factor

    ana"ysis based on theresponses in order to identify and se"ect four itemswith the highestfactor "oadings in each construct (see Gppendix G)This study anchorsa"" persona"ity items on a &=to=N N U strong"y agree)This study measures business strategy attributes insix dimensions(defensi$eness# ana"ysis# ris8 a$ersion# pro=acti$eness# futurity andaggressi$eness) using N=point $Dase e" GpDndice! para "a esca"a comp"eta y se"eccionadosmateria")# y e" uso de todos e""os harF 3ue e"cuestionario insoportab"ementede "argo# este estudio recoge datos de &S1 RestiAn de

    "a InformaciAn4istemas (-I4) de pregrado para recortar "osinstrumentos para cada uno de "ospersona"idad construye N U tota"mente de acuerdo)?sta estrategia de negocio estudio mide "os atributosen seis dimensiones(actitud defensi$a# e" anF"isis# "a a$ersiAn a" riesgo#proacti$idad# futuridad yagresi$idad)# uti"izando esca"as

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    persona"ityconstruct using the new"y se"ected items and thebusiness strategyconstruct The authors gi$e the respondents theoptions to pro$ideopen=ended comments on the 3uestions and theyha$e not detectedprob"em with re"iabi"ity with the shortened instrumentfor the persona"ityconstructs and the items adapted from pre$ious

    studies for businessstrategy,rior research suggests that manageria" assessmentsof organization'sbusiness performance are high"y corre"ated withob@ecti$e performancendicators and hence# fo""owing 4abherwa" and Chan(011&)# this studyre"ies on perceptua" measures of businessperformance These measuresnc"ude &) emp"oyee producti$ity# 0) operationeciency# ;) operationcost# J) customer satisfaction# S) re"ationship withpartners# 2) re$enueearnings# N) pro*t# and %) mar8et share This studymeasures a"" thesetems with se$en=point

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    members Togetherwith the authors' decision not to co""ect anypersona""y identi*ab"e information#separating sending tas8s from recei$ing tas8s in theadministrationof the sur$ey enab"es them and the endorsers toenforce strictanonymity and con*dentia"ity for the respondents;&% se"ected seniorT-G members from di:erent organizations recei$e

    the sur$ey in$itationThey *t the @ob pro*"e of a CIO and shou"d becognizant of IT strategy intheir organizations# and shou"d thus be ab"e topro$ide $a"id and accuratenformationTo increase the response rate# the study inc"udesother options 9irst#the authors send the sur$ey pac8age as an e=mai"attachment to two organizationsthat ha$e reported prob"ems in accessing the on"inesur$eywebsite 4econd# the authors a"so send &1 pac8agesby con$entiona"mai" to organizations that prefer a paper=basedsur$ey One wee8 beforethe c"osing dead"ine of the sur$ey# the head of IT-Ga"so sendsreminders to the pre=se"ected members to respondWote that theymaintain the separation of sending and recei$ingtas8s in these newmodes of data co""ectionOf the ;&% pre=se"ected members# 6S respond#yie"ding a response

    rate of 06%NV This response rate is acceptab"e#gi$en the unso"icited natureof the sur$ey and the high pro*"e of the targetrespondents# that is#the CIOs (Teo# Mei# / !enbasat# 011;) 5esponsesfrom six respondents#howe$er# are incomp"ete The authors omit these sixresponses fromfurther ana"ysis because they cannot reco$er themissing data due tothe anonymous nature of their sur$ey Therespondents come fromorganizations with di$erse characteristics in terms of

    ndustry# numberof emp"oyees# and number of IT professiona"semp"oyed Gs the authorsha$e no detai"ed information on the non=respondents#they fo""ow thetest for non=response bias suggested by Grmstrongand O$erton(&6NN) That is# they compare the chi=s3uares of theresponses to demographic3uestions from the *rst 0SV of the respondents tothose of the*na" 0SV Gny signi*cant di:erence wou"d indicatethe presence of 

    non=response bias The resu"ts indicate no non=response bias

    "os directores de TI (Teo# Mei# y !enbasat# 011;)