Organizational Structure vs. Capabilities: Examining Critical Success Factors for Managing IT Service Delivery

IT managers are under constant pressure to deliver high quality IT services at low cost to their internal customers. Although this task seems to be virtually impossible it is the daily life of many IT professionals and as such of high practical importance. However, research on IT service delivery (ITSD) is rare and little analysis is devoted to the question how organizational settings and specific capabilities impact the performance of ITSD. Addressing this gap, this paper identifies critical success factors for ITSD management. A research framework was developed and tested using a multiple case study approach. The analysis was conducted using qualitative comparative analysis (QCA). Findings show that a central organizational unit responsible for service delivery (a so called “retained organization”) is not necessarily a condition for high performing ITSD. Outstanding performance was only found in firms where adequate organizational structures are in place and ITSD-specific competencies like knowledge integration and measurement capabilities were cultivated.