An empirical study of factors affecting the value gap in information systems investment

An empirical study of factors affecting the value gap in information systems investment

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Article ID: iaor20051627
Country: South Korea
Volume: 21
Issue: 2
Start Page Number: 145
End Page Number: 165
Publication Date: Nov 2004
Journal: Korean Management Science Review
Authors: ,
Abstract:

Frequently, lots of organizations have experienced the value discrepancy between the expected value and the realized value from IS (information systems) investments. Being positive or negative the difference is, however, the existence of discrepancy itself is an evidence of less-than-sound management and measurement of IS projects. Analyzing the factors that cause such discovery has become an issue of scrutiny both in academia and in practice. We model which factors, as predictors, will affect the value discrepancy, as dependent variables, in IS investment. This research will establish and examine the research model, the validity of category classification of value discrepancy factors and the perceptual level of IS value discrepancy by survey research. As a result of the survey research, the strategic alignment, the proper system design for staffs, the project planning capability, and interdepartmental task cooperation are perceived as the factors that significantly affect the value discrepancy. And known as IS access factors such as the managerial support, the change management, the standardized process, and the competitive investment are not significant factors. The research findings will provide and emphasize useful implications which factors should be deliberately investigated in IS investment both for practices considering IS deployment and for academia.

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