Organizational Characteristics and Information Systems Planning: An Empirical Study

Abstract

Information Systems (IS) planning has gained considerable interest among researchers and practitioners in recent years because of the large investments that firms have made in IS and the increasingly strategic nature of the impact of information systems on organizational performance. Since IS planning is performed in an organizational context, characteristics of the organization may have a significant influence on the quality and effectiveness of the IS planning process. A research model is developed that links two major dimensions of IS planning—the quality of the planning process and planning effectiveness—with a set of eight organizational factors derived from contingency research in IS planning, strategic business planning, organizational studies, and technology innovation. The model is validated using data collected from a field survey of 249 senior IS executives. Canonical correlation analysis is used to test the research hypotheses and validate the model. The results of the study indicate that the two planning dimensions respectively reflecting the “means” and “ends” of IS planning are equally important. The results also indicate that planning resources, the intended strategic impact of IS on future business operations, the quality of facilitation mechanisms, the quality of implementation mechanisms, and the quality of strategic business planning are significantly associated with the quality and effectiveness of IS planning. The implications of the results to further research and to managerial practice are highlighted.