Success Factors for User Department’s Information Systems: A Multilevel Analysis Eldon Y. Li University Chair Professor Department of MIS National Chengchi University, Taiwan http://www.calpoly.edu/~eli *** All right reserved. Reference to this document should be made as follows: Li, E.Y. “Success Factors for User Department’s Information Systems: A Multilevel Analysis”, unpublished lecture, National Chengchi University, 2016. *** Copyright © E.Y.Li 2018/11/28

Agenda Purpose Originality Research questions Theoretical framework Method Research model Multilevel Analysis Analyses & Results Findings Implications Future research Copyright (c) E.Y.Li 2018/11/28

Purpose This study examines the effects of people-related factors of information system (IS) success. It adapts the job performance theory and field theory to identify the people-related antecedents and validate a multilevel model of IS success.

Organization’s Net Benefits Originality The ISS model of DeLone and McLean (1992, 2003) IS’s Qualities User’s Satisfaction Organization’s Net Benefits IS Developers Users ???

Originality The ISS model of DeLone and McLean (1992, 2003) prescribes IS’s quality (including information, system, and service qualities), user’s satisfaction, and organization’s net benefits as the three integrated components. While IS developer is responsible for IS quality, users are concerned with satisfaction, leaving net benefits unattended. This study is the first to take a new perspective and view organization’s benefits as the job performance outcomes of individual user managers who are responsible for user department’s IS performance (UDISP) in management and productivity.

Research Questions What are the people-related factors influencing user department’s success in IS appcliation (as measured by UDISP)? What are the interaction effects of these people-related factors on UDISP?

Explainning Theories Job performance theory (JPT) – Job performance (JP) is a function of capacity (C), willingness (W), and opportunity (O). (Vroom, 1964). JP = f (CWO) Field theory (FT) – Individual’s behavior (B) is a function of the person (P) interacting with the environment (E). (Lewin, 1951) B = f (P, E)

Theoretical Framework

Method - Measures Job performance  User department’s IS performance. Opportunity  Top management support. Capability  User manager’s knowledge about IS applications. Willingness  User manager’s attitude toward IS applications. Legend:  =measured by.

Method - Measures Item Code Items Scources Department level User department ISP 6   DeLone & McLean (1992), Ragu-Nathan et al. (2004), Byrd et al. (2006) IS knowledge 5 Boyatzis (1982) and Spencer & Spencer (1993) IS attitude 4 Ajzen (1991) Company level Top management support 3 Ragu-Nathan et al. (2004)

Research Model

Multilevel Analysis Company 1 Company 2 Company 3 Company 4 Company 30

Multilevel Analysis (Cont.) Condition for applying multilevel analysis Variance between companies  large Variance within a company (between employees)  small Otherwise, use single level analysis

Multilevel Analysis (Cont.) Intraclass correlation coefficients (cont.) ICC1 compares the between-organizations variance to the within-organization variance to indicate the portion of variance in individual responses accounted for by the between-organizations difference. > 0.12 K = the average company size

Multilevel Analysis (Cont.) Intraclass correlation coefficients (cont.) ICC1 reveals the reliability of the mean of an organization-level variable. > 0.60

Multilevel Analysis (Cont.)

Method - Data Data requirements: Software requirement: Using similar information systems: ERP In similar industry: manufacturing System experience: At least 1 year At least 10 companies: 42 At least 5 data ponits from each company: 283 Software requirement: Hierarchical Linear Model (HLM)

Method - Data Data requirements: Software requirement: Using similar information systems: ERP In similar industry: manufacturing System experience: At least 1 year At least 10 companies: 42 At least 5 data ponits from each company: 283 Software requirement: Hierarchical Linear Model (HLM)

Analyses Focus group was used to ensure face validity of the survey questionnaire. Survey data were collected from 283 user managers (K=6 to 7) and 42 top managers of 42 different Chinese manufacturing companies in which ERP systems were being utilized. (ICC1=0.253, ICC2=0.670) The model can be validated by using Hierarchical Linear Modelling (HLM) method.

Results

Findings Top management support, user-manager knowledge, and user-manager attitude all affect the level of UDISP significantly. (H1, H2, H3 supported) Top management support significantly moderates the relationship between user-manager attitude and UDISP. (H5 supported) The interaction effect of top management support and user-manager knowledge on UDISP is not significant. (H4 not supported)

Implications - Practical To enhance job performance, top management should proactively support the company to provide training, psychotherapy, and positive developmental experiences to user managers in order to improve their knowledge and attitude about a specific job. For attaining UDISP, user managers should develop and exploit their knowledge about IS.

Implications - Social When user managers lead in using IS, their subordinates tend to follow; this helps decrease the chance of IS failure. Corporate management should allocate to department managers the duty of IS success. IS providers should deliver hand-on training and detailed operating manual to increase the capability of user managers.

Future Research More factors may be included in the three dimensions. Personal opportunity could be included in the individual level, in addition to organizational opportunity. Other informant sources for UDISP. More data from other provinces.

Thank You for Listening Q & A Copyright (c) E.Y.Li 2018/11/28

Copyright (c) E.Y.Li 2018/11/28

Copyright (c) E.Y.Li 2018/11/28