Skip to main content

IT Capabilities and Organizational Change: Digging Deeper into the Banking Industry

  • Conference paper
Enterprise Applications and Services in the Finance Industry (FinanceCom 2007)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 4))

  • 523 Accesses

Abstract

The importance for organizational performance of aligning IT and organizational change is well recognized in the empirical literature [1], [2], [3] and there are many theoretical approaches that focus on this subject. In this study we use an emergent perspective [3], [4], [5] to show how IT capabilities can help management in strategic planning involving organizational change. The organizational change is studied according to process-level research [6] and the findings describe how IT capabilities can drive this change. The context for our study is the Italian financial industry in its bid to be compliant with the MiFID directive. The method combines quantitative (questionnaire) and qualitative (focus groups) analysis to achieve reliable evidence and results. The sample is composed of 37 Italian financial institutions and the study focuses on theoretical and empirical work.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Croteau, A.M., Bergeron, F.: An Information Technology Trilogy: Business Strategy, technological deployment and Organizational Performance. Journal of Strategic Information Systems 10(2), 77–99 (2001)

    Article  Google Scholar 

  2. King, W.R., Teo, T.S.H.: Integration between business planning and information systems planning: an evolutionary-contingency perspective. Journal of Management and Information Systems 14(1), 185–214 (1997)

    Google Scholar 

  3. Sambamurthy, V., Zmud, R.W.: Arrangements for Information Technology Governance: A Theory of Multiple Contingencies. Mis Quarterly 23(2), 261–290 (1999)

    Article  Google Scholar 

  4. Orlikowski, W.J., Iacono, C.S.: Research Commentary: Desperately Seeking the “IT” in IT Research—A Call to Theorizing the IT Artifact. Information Systems Research 12(2), 121–134 (2001)

    Article  Google Scholar 

  5. Mitchell, V.L., Zmud, R.W.: Endogenous Adaptation: The Effects of Technology Position and Planning Mode on IT-Enabled Change. Decision Science 37(3), 325–355 (2006)

    Article  Google Scholar 

  6. Van de Ven, A.H., Poole, M.S.: Handbook of Organizational Change and Innovation, pp. 261–264 (2004)

    Google Scholar 

  7. Rose, J., Jones, M., Truex, D.: Socio-Theoretic Accounts of IS: The Problem of Agency. Scandinavian Journal of Information Systems 17(1), 133–152 (2005)

    Google Scholar 

  8. Williams, J.R.: Technological Evolution and Competitive Response. Strategic Management Journal 4(1), 55–65 (1983)

    Article  Google Scholar 

  9. Katz, M.L., Shapiro, C.: Network Externalities, Competition and Compatibility. The American Economy Review 75(3), 424–440 (1985)

    Google Scholar 

  10. Arthur, B.W.: Competing Technologies, Increasing Returns, and Lock-In by Historical Events. Economic Journal 99(394), 116–131 (1989)

    Article  Google Scholar 

  11. Shapiro, C., Varian, H.L.: Information Rules. Harvard Business Press, Boston (1998)

    Google Scholar 

  12. Grandori, A.: Organization and Economical Behavior. Routledge, London (1995)

    Google Scholar 

  13. Leavitt, H.J., Whisler, T.L.: Management in the 1980s. Harvard Business Review 36(6), 41–48 (1958)

    Google Scholar 

  14. Bakopoulos, J.A.Y.: Toward a More Precise Concept of Information Technology. In: Proceedings of the Sixth International Conference of Information Systems, Indianapolis, IN, pp. 17–24 (1985)

    Google Scholar 

  15. Fry, L.W.: Technology-Structure Research: The Critical Issues. Academy of Management Journal 25(3), 532–552 (1982)

    Article  Google Scholar 

  16. Bowman, B., Davis, G., Wetherbe, J.: Three Stage Model of MIS Planning. Information and Management 6(1), 11–25 (1983)

    Article  Google Scholar 

  17. Earl, J.: Experiences in Strategic Information Systems Planning. Mis Quarterly 17(1), 1–24 (1993)

    Article  Google Scholar 

  18. King, W.R.: Developing Global IT Capabilities. Information Systems Management 23(4), 78–79 (2006)

    Article  Google Scholar 

  19. Bharadwaj, A.S., Sambamurthy, V., Zmud, R.W.: IT Capabilities: Theoretical Perspectives and Empirical Operationalization. In: Proceedings of the 20th International Conference of Information Systems, Charlotte, NC, pp. 378–385 (1999)

    Google Scholar 

  20. Prieto, E., Revilla, E., Rodriguez, B.: Information Technology and the ambidexterity Hypotheses: an analysis in product development. IE Working Paper 06-07 (2007)

    Google Scholar 

  21. Lyytinen, K., Rose, G.M.: Information System Development Agility as Organizational Learning. European Journal of Information Systems (2006)

    Google Scholar 

  22. Clark, C.E., Cavanaugh, N.C., Brown, C.V., Sambamurthy, V.: Building Change-Readiness Capabilities in the IS Organization: Insight from the Bell Atlantic Experience. MIS Quarterly 21(4), 425–445 (1997)

    Article  Google Scholar 

  23. Rogers, E.M.: Diffusion of Innovation, 5th edn. Free Press, New York (2003)

    Google Scholar 

  24. Leidner, D., Beatty, R., Mackay, J.: How CIOs manage IT During Economic Decline: Surviving Thriving Amid Uncertainty. MIS Quarterly Executive 2(1), 1–14 (2003)

    Google Scholar 

  25. Shafiri, H., Zhang, Z.: Agile Manufacting in practice: Application of a Methodology. International Journal of Operations & Production Management 21(5/6), 772–794 (2001)

    Article  Google Scholar 

  26. Haeckel, S.H.: Adaptive Enterprise: Creating and Leading Sense-and-Respond Organizations. Harvard Business School Press, Boston, Massachusetts (1999)

    Google Scholar 

  27. Markus, M.L., Robey, D.: Information Technology and Organizational Change: Casual Structure in Theory and Research. Management Science 34, 583–599

    Google Scholar 

  28. Purvis, R.L., Sambamurthy, V., Zmud, R.: The Assimilation of Knowledge Platforms in Organizations: An Empirical Investigation. Organization Science 12(2), 117–135 (2001)

    Article  Google Scholar 

  29. Mitchell, V., Zmud, R.W.: Endogenous Adaptation: The Effects of Technology Position and Planning Mode on IT-Enabled Change. Decision Sciences 37(3), 325–355 (2006)

    Article  Google Scholar 

  30. Mitchell, V., Zmud, R.W.: The Effects of Coupling IT and Work Process Strategies in Redesign Projects. Organization Science 10(4), 424–438 (1999)

    Article  Google Scholar 

  31. Orlikowski, W.J.: Material Knowing: The Scaffolding of Human Knowledgeability. In: Proceedings of the Sixth European Conference on Organizational Knowledge, Learning and Capabilities, Cambridge, MA (2005)

    Google Scholar 

  32. Orlikowski, W.J., Barney, S.R.: Technology and Institutions: What Can Research on Information Technology and Research on Organizations Learn from Each Other? MIS Quarterly 25(2), 145–165 (2001)

    Article  Google Scholar 

  33. Sambamurthy, V., Zmud, R.W.: Research Commentary: The Organizing Logic of an Enterprise’s IT Activities in the Digital Era – A prognosis of Practice and a Call for Research. Information Systems Research 11(2), 105–114 (2000)

    Article  Google Scholar 

  34. Lawler, E.E.: From the Ground Up: Six Principles for Building the New Logic Corporation. Jossey-Bass, San Francisco (1996)

    Google Scholar 

  35. Ross, J.V., Beath, C.M., Goodhue, D.L.: Develop Long-Term Competitiveness through IT Assets. Sloan Management Review 38(1), 31–42 (1996)

    Google Scholar 

  36. Bharadadway, A., Sambamurthy, V., Zmud, R.W.: IT Capabilities: Theoretical Perspectives and Empirical Operationalization. In: Proceedings of the Twentieth International Conference of Information Systems, Charlotte, NC (1999)

    Google Scholar 

  37. Zmud, R.W.: Design Alternatives for Organizing Information Systems Activities. Mis Quarterly 8(2), 79–93 (1984)

    Article  Google Scholar 

  38. Mintzberg, H.: Patterns of Strategy Formulation. Management Science 24(9), 934–948 (1978)

    Article  Google Scholar 

  39. Thompson, J.D.: Organizations in Action. McGraw-Hill, New York (1967)

    Google Scholar 

  40. Ciborra, C.U., Schneider, L.: Transforming the Context and Routines of Management, Strategy and Technology. In: Adler, P. (ed.) The Future of Work, Oxford University Press, Oxford (1992)

    Google Scholar 

  41. Ciborra, C.U., Lanzara, G.F.: Formative Context and Information Technology: Understanding the Dynamics of Innovation in Organizations. Accounting, Management and Information Technology 4(2), 61–86 (1994)

    Article  Google Scholar 

  42. Anolli, M., Petrella, G.: La nuova proposta di direttiva sui servizi di investimento e il mercato azionario: concorrenza, liquidità e trasparenza. Bancaria 10, 2–217 (2003)

    Google Scholar 

  43. Van de Ven, A.H.: Suggestions for Studying Strategy Process. A Research Note. Strategic Management Journal, S.I., 13, 169–191 (summer 1992)

    Google Scholar 

  44. Mohr, L.B.: Explaining Organizational Behavior. Jossey-Bass, San Francisco (1992)

    Google Scholar 

  45. Abbott, A.: Transcending General Linear Reality. Sociology Theory 6(2), 169–186 (1988)

    Article  Google Scholar 

  46. Pentland, B.T.: Building Process Theory with Narrative: From Description to Explanation. The Academy of Management Review 24(4), 711–724 (1999)

    Article  Google Scholar 

  47. Poole, M.S., Van de Ven, A.H., Dooley, K., Holmes, M.E.: Organizational Change and Innovation Processes. Oxford University Press, Oxford (2000)

    Google Scholar 

  48. Broh, B.: Linking Extracurricular Programming to Academic Achievement: Who Benefits and Why? Sociology of Education 75(1), 69–95 (2002)

    Article  Google Scholar 

  49. Sonquist, J., Dunkelberg, W.: Survey and Opinion Research: Procedures for Processing and Analysis. Prentice-Hall, New York (1977)

    Google Scholar 

  50. Lipparini, A.: Le Competenze Organizzative. Carocci Editore, Roma (1995)

    Google Scholar 

  51. Swenson, O., Maule, J.: Time Pressure and Stress in Human Judgment and Decision Making. Plenum Press, New York and London (1993)

    Google Scholar 

  52. Ahituv, N., Igbaria, M., Sella, A.: The effects of time pressure and completeness of information on decision making. Journal of Management Information Systems 15(2), 153–172 (1998)

    Google Scholar 

  53. Mayer, R.E.: The Promise of Multimedia Learning: Using the Same Instructional Design methods Across Different Media. Learning and Instruction 13, 125–139 (2003)

    Article  Google Scholar 

  54. Orlikowski, W.J.: Using Technology and Constituting Structures: A practice Lens for Studying Technology in Organizations. Organization Science 11(4), 404–428 (2000)

    Article  Google Scholar 

  55. Somers, T.M., Nelson, K.: The impact of critical success factors across the stages of enterprise resource planning implementations. In: Proceedings of the 34th Annual Hawaii International Conference on System Sciences (2001)

    Google Scholar 

  56. Van de Ven, A.H.: Running in Packs to develop Knowledge-Intensive Technologies. Mis Quarterly 29(2), 365–378 (2005)

    Google Scholar 

  57. Clark, C.E., Cavanaugh, N.C., Brown, C.V., Sambamurthy, V.: Building Change-Readiness Capabilities in the IS Organization: Insights from the Bell Atlantic Experience. Mis Quarterly 21(4), 425–455 (1997)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Daniel J. Veit Dennis Kundisch Tim Weitzel Christof Weinhardt Fethi A. Rabhi Federico Rajola

Rights and permissions

Reprints and permissions

Copyright information

© 2008 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Marabelli, M., Rajola, F. (2008). IT Capabilities and Organizational Change: Digging Deeper into the Banking Industry. In: Veit, D.J., Kundisch, D., Weitzel, T., Weinhardt, C., Rabhi, F.A., Rajola, F. (eds) Enterprise Applications and Services in the Finance Industry. FinanceCom 2007. Lecture Notes in Business Information Processing, vol 4. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-78550-7_6

Download citation

  • DOI: https://doi.org/10.1007/978-3-540-78550-7_6

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-78549-1

  • Online ISBN: 978-3-540-78550-7

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics