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Effects of strategic alignment on IS success: the mediation role of IS investment in Korea

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Abstract

The purpose of this research is to develop a comprehensive information system (IS) evaluation model for IS success linked to organizational performance. The primary focus of this research is to investigate the role of IT investment in business values by means of a group survey of about 300 business executives in Korea. We used the contingency theory to discover the mediation effect of IS investment on strategic alignment and IS success. In contrast to previous research, this study expanded the test scope to IS architecture and organizational structure at the operational level. The results from 273 business executives in Korea indicated that strategy integration with IT is positively related to IT investment, and IT investment is a critical antecedent of IS success. Thus, the implications of the findings are that right-directional IT investment has played an important role in the success of IT companies in Korea.

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Authors and Affiliations

  1. Department of Information Systems and Change Management, University of Twente, Enschede, The Netherlands

    Hanjun Suh & Jos Van Hillegersberg

  2. School of Business, Sejong University, Seoul, Korea

    Jinho Choi

  3. Department of Information Systems, Desautels Faculty of Management, McGill University, 1001 Sherbrooke Street West, Montreal, QC, H3A 1G5, Canada

    Sunghun Chung

Authors
  1. Hanjun Suh
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  2. Jos Van Hillegersberg
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  3. Jinho Choi
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  4. Sunghun Chung
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Corresponding author

Correspondence to Sunghun Chung.

Appendix: IS success (benefit) measurements

Appendix: IS success (benefit) measurements

1.1 Planning and management support

  • OEB_PMS l Improve internal communication and coordination

  • OEB_PMS 2 Strengthen strategic planning

  • OEB_PMS 3 Enable your company to adopt business standardization processes

  • OEB_PMS 4 Improve management decision making

  • OEB_PMS 5 Reduce management cost

1.2 Production and operations

  • OEB_PO l Improve production throughput or service volumes

  • OEB_PO 2 Enhance operating flexibility

  • OEB_PO 3 Improve the productivity of labor

  • OEB_PO 4 Enhance utilization of equipment

  • OEB_PO 5 Reduce the cost of tailoring products or services

1.3 Product and service enhancement

  • OEB_SE l Improve control and coordination ability of products/services

  • OEB_SE 2 Decrease the cost of designing new products/services

  • OEB_SE 3 Reduce the time to market for new products/services

  • OEB_SE 4 Enhance product/service quality

  • OEB_SE 5 Support product/service innovation

1.4 Supplier relations (inbound logistics)

  • SPB_SR 1 Help your corporation gain leverage over its suppliers

  • SPB_SR 2 Help reduce variance in supplier lead times

  • SPB_SR 3 Help develop close relationships with suppliers

  • SPB_SR 4 Improve monitoring of the quality of products/services from suppliers

  • SPB_SR 5 Enable electronic transactions with suppliers

1.5 Sales and marketing support

  • SPB_SMS l Enable the identification of market trends

  • SPB_SMS 2 Increase the ability to anticipate customer needs

  • SPB_SMS 3 Enable sales people to increase sales per customer

  • SPB_SMS 4 Improve the accuracy of sales forecasts

  • SPB_SMS 5 Help track market response to pricing strategies

1.6 Customer relations (outbound logistics)

  • SPB_CR 1 Enhance the flexibility and responsiveness to customer needs

  • SPB_CR 2 Improve the distribution of goods and services

  • SPB_CR 3 Enhance the ability to attract and retain customers

  • SPB_CR 4 Enable you to support customers during the sales process

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Suh, H., Van Hillegersberg, J., Choi, J. et al. Effects of strategic alignment on IS success: the mediation role of IS investment in Korea. Inf Technol Manag 14, 7–27 (2013). https://doi.org/10.1007/s10799-012-0144-7

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