The Relationships among Orientations of IT Strategy, Directions of IT Portfolio, and IT Performance

  • Kang Taegyung (Department of MIS Jinju International University) ;
  • Park Sanghyuk (Department of Electronic Commerce Jinju National University)
  • 발행 : 2004.11.01

초록

Many organizations experience that the Performance they gained from IT portfolio is lower than they expected values. As with any investment, executives are concerned with maximizing the performance from their investment in IT. This study focused on the relationship or fit between orientations of IT strategy and directions of IT portfolio to maximize IT performance. A field survey of chief information officers of Korea manufacturing sector was conducted in 2003. Complete data of 147 firms was analyzed to determine relationship among the three research constructs that are orientations of IT strategy, directions IT portfolio, and IT performance. In this study, the orientations of IT strategy have two dimensions that are operation orientation and market orientation. The directions of IT portfolio have two dimension that are internal system focused and external system focused. And the IT performance has divided into operational performance and competitive performance. As a result of this study, the companies that are putting a focus with operation orientation were concentrated on internal information systems than external information systems. On the other hand, the other companies that are focused on market orientation were concentrated on external information systems than internal information systems. Consequently, the companies that are focused on operation orientation were operational performance higher than competitive performance and the other companies that are focused on market orientation were competitive performance higher than operational performance. More importantly, the research results provide empirical evidence that supports the hypothesis related to closer fit between IT strategy and IT portfolio does lead to increase operational and competitive performance of IT. And the results emphasize manager's efforts of fit between orientations of IT strategy and directions of IT portfolio to be realized IT performance.

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