WUCISA 2011 Presentation ON IT GOVERNANCE STRUCTURES AND THEIR EFFECTIVENESS IN COLLABORATIVE ORGANIZATIONAL STRUCTURES Presented by: Jon Heales Authors Acklesh Prasad, Peter Green, and Jon Heales

WUCISA 2011 Presentation Presentation Outline Motivation Research Objective Theoretical Basis Hypothesis Research Design Results Contributions Directions for Future Research Limitations Conclusion

WUCISA 2011 Presentation Motivation Key to business success today – bring disparate resources together and leverage the synergy between these resources Organizations are forming new alliances using a shared IT-based platform The result - Collaborative Organizations Structures (COS) COS - alliances developed with IT resources as their backbone The proliferation of web 2.0 tools – Enterprise 2.0

WUCISA 2011 Presentation Motivation IT governance for COS is important to sustain the collaborative alliance IT Governance for COS – a move away from within-organization structures to across- organizations structures Are current suggested IT governance structures suitable for COS? Need for a different set of IT governance structures IT governance structures of COS must be effective to ensure its sustainability

WUCISA 2011 Presentation Research Question “What type of IT governance structures are important for management of IT resources in COS and how do we ascertain the effectiveness of these IT governance structures?”

WUCISA 2011 Presentation Our Conceptualization

WUCISA 2011 Presentation Theoretical Basis The dynamic capabilities approach Understanding the synergy between IT governance capabilities in organizations The resultant Dynamic IT governance structures Dynamic structures – able to fit and respond to changing business environment – common for IT-backed collaborative structures like COS Understanding the synergy between dynamic IT governance capabilities between COS alliance partners. Result – IT governance structures for COS- a shared approach

WUCISA 2011 Presentation Our Approach with Theory Theory informs on the nature of the COS IT governance structures But we need to understand on the makeup of these IT governance structures.

WUCISA 2011 Presentation Research Design - Part 1 An interpretive approach to obtaining a deeper understanding of the makeup of IT governance structures for COS Sourcing information from the key stakeholders of successful COS or related alliance structures 16 semi-structured interviews Interpretation of interview transcripts Result - key themes of IT governance structures for COS

WUCISA 2011 Presentation Key Conceptualizations and Themes Broad ConceptionsKey Themes Co-Created IT Steering Committee Shared IT Governance, Shared Resource Ownership, Lateral Decision Making, Broader Adaptation of the IT Resource Inter-Organizational Lateral Communication System Extensive Partner Communication, Alliance- Based Communication, Leveraging the Web 2.0 Communication and Collaboration Tools, Inter-Organizational Performance Management System Broader Metrics for Evaluating Performance, Shared Alliance Responsibilities, IT-Based Alliance Evaluation Co-Created Operational Systems Committee Operational Coordination, Operational Alignment, Operational Consistency

WUCISA 2011 Presentation Subsequent Research Model

WUCISA 2011 Presentation Research Design – Stage 2 Survey Approach Instrument Development and Testing Online and Paper based survey Contacts – parties to COS, retailer, logistics, payment facilitation 118 valid responses Diagnostics showed no issues with data

WUCISA 2011 Presentation Results – Measurement Properties AVECRACORCOSCCTSC USTFRMPILCSIOPS1PROPSFLXSSOKSTMC COSC CTSC CUST FRMP ILCS IOPS PROP SFLX SSOK STMC COSC – Co-Created IT Steering Committee, ILCS – Inter-organizational Lateral Communication Systems, IOPS – Inter-Organizational Performance Systems, COSC – Co-Created Operational Systems Committee, SSOK, Sustained Shared Organizational Knowledge, SFLX – Sustained Flexible IT Infrastructure, STMC –Sustained Top Management Commitment, CUST – Customer Service, PROP – Internal Process-Level Performance, FRMP – Firm-Level Performance, AVE – Average Variance Extracted, CRA – Cronbach’s Alpha, COR – Composite Reliability

WUCISA 2011 Presentation Results – Structural Properties

WUCISA 2011 Presentation Discussion IT-based alliances like COS require different IT governance structures The decisions on IT has impact to all parties of the alliance The suggested governance structures for COS are effective They contribute to alliances key IT-related competencies, sustains their IT-related capabilities This subsequently contributes to business value at the process and the firm level.

WUCISA 2011 Presentation Contributions Provides a way to govern IT resources that build the collaborate alliances The governance effectiveness assessment approach will ensure sustainability of COS because there is a mechanism to evaluate the alliances IT-related decisions and efforts. Effective IT governance structures are important for the today’s dynamic alliances Motivates practice to take a holistic approach towards their IT-related decision making

WUCISA 2011 Presentation Directions for future research Focusing on specific parties of COS – payment providers, logistics may provide a deeper understanding Nature of IT resources for COS Organizational readiness for being part of COS

WUCISA 2011 Presentation Research Limitations A modest yet adequate dataset to test model Including the demographics on the alliance partners could strengthen our understanding of IT resource utilization in COS

WUCISA 2011 Presentation Conclusion This study offers insights on the need for co- created IT governance structures to manage the IT resources with COS. The proliferation of rich web 2.0 tools means organizations will increase their intensity of commitment into COS. We envisage our effort will encourage other researchers add to this body of knowledge to ensure organizations are continually updated on ways to leverage their investment in the IT resources.

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