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Examining the Emergence of Hybrid IS Governance Solutions: Evidence From a Single Case Site

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  • Carol V. Brown

    (Decision & Information Systems, Graduate School of Business, Indiana University, 801 W. Michigan Street, Indianapolis, Indiana 46202-5151)

Abstract

The prior IS literature points to the importance of organizational context for predicting a firm’s IS governance solution. However, for the most part this literature assumes that firms adopt a uniform IS governance solution for all business units and that this solution can be predicted by context variables at the overall organization level. The purpose of this study is to increase our knowledge about why firms implement a hybrid IS governance solution in which a subset of IS functions that includes systems development is decentralized to some business units, but not to other business units, in the same enterprise. A theoretical framework of context variables at the business unit level is first developed. An embedded, single case study provides an initial test of eight propositions derived from the framework, as well as an opportunity for theory building. Data are collected utilizing both deductive and inductive methods from IS and non-IS executives of a divisionalized Fortune 500 firm in which a uniform decentralized solution for systems development in place for almost a decade has recently been replaced by a hybrid solution. The case study findings suggest that a configuration of four variables characterizes a business unit context conducive to decentralized systems development governance (organic decision-making, high business unit autonomy, a differentiation competitive strategy, and an unstable industry environment). As predicted, however, the influence of these variables is likely to be overridden and a “deviant” solution adopted when deficiencies in IT capabilities are perceived and there is a culture that supports structural change at the business unit level. Additional interview and survey data collected from the key stakeholders are then analyzed in order to develop a richer understanding of the dimensions of the IT capabilities construct at the business unit level. The notion of absorptive capacity provides a theoretical argument for the emergent findings. Implications for researching today's increasingly complex IS governance forms are then drawn.

Suggested Citation

  • Carol V. Brown, 1997. "Examining the Emergence of Hybrid IS Governance Solutions: Evidence From a Single Case Site," Information Systems Research, INFORMS, vol. 8(1), pages 69-94, March.
  • Handle: RePEc:inm:orisre:v:8:y:1997:i:1:p:69-94
    DOI: 10.1287/isre.8.1.69
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    Citations

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    Cited by:

    1. Rajiv Sabherwal & Rudy Hirschheim & Tim Goles, 2001. "The Dynamics of Alignment: Insights from a Punctuated Equilibrium Model," Organization Science, INFORMS, vol. 12(2), pages 179-197, April.
    2. Jens Dibbern & Armin Heinzl, 2009. "Outsourcing of Information Systems Functions in Small and Medium Sized Enterprises: A Test of a Multi-Theoretical Model," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 1(1), pages 101-110, February.
    3. Prasad, Acklesh & Heales, Jon & Green, Peter, 2010. "A capabilities-based approach to obtaining a deeper understanding of information technology governance effectiveness: Evidence from IT steering committees," International Journal of Accounting Information Systems, Elsevier, vol. 11(3), pages 214-232.
    4. Milomir Vojvodic & Christian Hitz, 2022. "Relation of Data Governance, Customer-Centricity and Data Processing Compliance," Central European Business Review, Prague University of Economics and Business, vol. 2022(5), pages 109-148.
    5. Sebastian Firk & André Hanelt & Jana Oehmichen & Michael Wolff, 2021. "Chief Digital Officers: An Analysis of the Presence of a Centralized Digital Transformation Role," Journal of Management Studies, Wiley Blackwell, vol. 58(7), pages 1800-1831, November.
    6. Brown, Carol V., 2003. "Linking intra-organizational stakeholders ; CIO perspectives on the use of coordination mechanisms," Working papers no. 304, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    7. Artur Siurdyban, 2014. "Understanding the IT/business partnership: A business process perspective," Information Systems Frontiers, Springer, vol. 16(5), pages 909-922, November.
    8. Katia Lobre & Jean-Baptiste Cartier, 2012. "Mutualisme bancaire, Hétérosis organisationnelle et difficultés de gouvernance," Post-Print halshs-00696908, HAL.
    9. Otto, Boris, 2012. "How to design the master data architecture: Findings from a case study at Bosch," International Journal of Information Management, Elsevier, vol. 32(4), pages 337-346.
    10. Saida Harguem, 2021. "A Conceptual Framework on IT Governance Impact on Organizational Performance: A Dynamic Capability Perspective," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 10, January.
    11. Amrit Tiwana, 2009. "Governance-Knowledge Fit in Systems Development Projects," Information Systems Research, INFORMS, vol. 20(2), pages 180-197, June.
    12. Carol V. Brown & Sharon L. Magill, 1998. "Reconceptualizing the Context-Design Issue for the Information Systems Function," Organization Science, INFORMS, vol. 9(2), pages 176-194, April.
    13. Amrit Tiwana & Stephen K. Kim, 2015. "Discriminating IT Governance," Information Systems Research, INFORMS, vol. 26(4), pages 656-674, December.
    14. Ling Xue & Gautam Ray & Bin Gu, 2011. "Environmental Uncertainty and IT Infrastructure Governance: A Curvilinear Relationship," Information Systems Research, INFORMS, vol. 22(2), pages 389-399, June.
    15. Peterson, R.R. & O'Callaghan, R. & Ribbers, P.M.A., 2000. "Information technology governance by design : Investigating hybrid configurations and integration mechanisms," Other publications TiSEM 80a15cf9-fb7e-4f63-946e-2, Tilburg University, School of Economics and Management.
    16. Dong, Shutao, 2012. "Decision execution mechanisms of IT governance: The CRM case," International Journal of Information Management, Elsevier, vol. 32(2), pages 147-157.
    17. Amrit Tiwana & Benn Konsynski, 2010. "Complementarities Between Organizational IT Architecture and Governance Structure," Information Systems Research, INFORMS, vol. 21(2), pages 288-304, June.
    18. Kim, Yong Jin & Lee, Jong Man & Koo, Chulmo & Nam, Kichan, 2013. "The role of governance effectiveness in explaining IT outsourcing performance," International Journal of Information Management, Elsevier, vol. 33(5), pages 850-860.

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