ORGANIZATIONAL CULTURE IMPACT ON INFORMATION SYSTEMS SUCCESS ISMAIL M

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The Impact of Organizational Politics on Information Systems Success

Organizational Culture Impact on Information Systems Success


Ismail M. Romi, PhD

Faculty of Informatics

Palestine |Polytechnic University, Palestine

E-Mail: [email protected]

(November, 2010)


Abstract

Information systems success and it’s determinatnts considered to be critical in the filed of information system. However, empirical results in this area are inconsistent. Organizational culture is one of the important determinants of information systems success that not deeply dicussed by researchers. Thus a comprehensive understanding of information systems success remains fuzzy and elusive in this area.

In an attempt to address this situation a comprehensive model was developed. This model explaines but not empirically tested, the impact of organizational culture with it’s major types (clan, adhocracy, hierarchy, market) on the information systems success dimensions (system quality, information quality, service quality, usability, user satisfaction, net benefits).


Keywords: Information systems success, organizational culture.

  1. Introduction

Information Systems (IS) has a critical role to organizations success, specially in this era, where globalization, digital economics, and digital organizations took place. So the weakness of IS considered as a dangerous phenomenon on organizational success in general (Chang et al, 2002). Furthermore, the question is not whether the organizations should have IS or not, but it should have an effective IS (Cragg and Tagliavini, 2005).

Therefore IS success and it’s determinants considered to be critical in the field of Information Systems (Delone & Mclean, 2003; Chang & King, 2005; Seddon 1999). However, empirical results in this area are inconsistent (Sabherwal et al, 2004), and an overall synthesis across the numerous empirical studies seems lacking (Sabherwal et al, 2004; Rai et al, 2002). In addition to excluding many determinants that affects IS success (Rai et al, 2002; Sabherwal et al, 2004; Chursciel and Field, 2003), organizational culture is one of the important determinants of IS success that not deeply discusses by researchers (Poku et al , 2002; Michael et al, 2004; Mukama et al, 2005). In addition, there is no obvious results concerning the impact of organizational culture on IS success. Thus a comprehensive understanding of Information Systems success remains fuzzy and elusive in this area.

The main objective of this study is to provide a further insight in to IS success and the organizational culture as a determinant of IS success, and examines the dimensions of IS success along with this determinant, and integrates the results with the prior researchs in this area. During this study a comprehensive model will be provided in order to enable the evaluation of information systems success along with the organizational culture, therefore this study adresses the following questions:

  1. What are the dimensions of IS success.

  2. What are the dimensions of organisational culture.

  3. How do the dimensions of IS success depend on organizational culture and it’s dimensions?

To pursue these questions, a comprehensive model was developed in this study, including the dimensions of IS success as dependent varaibles, and the organizational culture dimensions as an independent variables, after that an empirical study to be held to examine the developed model.


  1. Theoretical Framework

2.1 The General Model

The general model is presented (Figure 1) to identify the relationship between information success as a dependent variable and the organizational culture as an independent variable. The detailed research model is developped by using the prior literature on IS success and the organizational culture as a determinant to this success.


Organizational Culture

IS

Success


ORGANIZATIONAL CULTURE IMPACT ON INFORMATION SYSTEMS SUCCESS ISMAIL M

ORGANIZATIONAL CULTURE IMPACT ON INFORMATION SYSTEMS SUCCESS ISMAIL M ORGANIZATIONAL CULTURE IMPACT ON INFORMATION SYSTEMS SUCCESS ISMAIL M





Figure1: The General Model


2.2 Information Systems Success Factors

Information system is an integrated computer-based system that utilizes copmuter hardware, software, users, prosedures, models, and dtatabase which interacts to produce the suitable information at the appropriate time, to support organizational activities (Mcleod and Schell, 2004; Laudon and Laudon, 2004; Alter, 1996; Davis and Olson, 1985; Stair, 1996).

Where information systems success factors are a set of dimensions and aspects that produces the net benefits of information system, which includes system quality, information quality, service quality, system usefulness, user satisfaction, and net benefits (Delone and Mclean, 1992, 2002, 2003; Seddon 1994, 1997).

System Quality

System Quality is defined as a set of constructs related to information system that detrmines the quality of the systems (Delone and Mclean, 1992; Seddon, 1994). Those constructs are system reliability, ease of use, response time, relevance, timeliness, accuracy of information, and system productivity (Sabherwal et al, 2004).

Information quality

Information quality is the degree to which information presents the required benefits (Delone and Mclean, 1992; Seddon, 1994; Barnes and Vidgen, 2002). Where (Kahn et al, 2002) indicates set of characteristics for information which are accessibility, appropriateness, believability, completeness, concise representation, ease of manipulation, free from errors, interpretability, obhectivity, relevancy, reputation and security.

Service quality

Service quality was discussed by (Parasurman et al, 1991; Delone and Mclean, 1992; Seddon, 1994; Hochstein et al, 2005; Kim et al, 2005) as a set of characteristics related to services submitted by IS to customers which includes system reliability, assurance, empathy, timeliness, and security.

System usability

System usability is the consumption of IS output by the recipient of IS (Delone and Mclean, 1992; Seddon, 1994). This usability indicated with learnability, flexibility, and robustness (Dix et al, 2004). Where learnability includes predictability, synthesizability, familiarity, generalizability, consistency. Flexibility includes dialogue initiative, multi-threading, substitutivity, customizability. robustness includes observability, recoverability, responsiveness, task conformance.

User satisfaction

User satisfaction refers to the recipient response to the use of IS output (Delone and Mclean, 1992; Seddon, 1994). User satisfaction is associated with attitudes towards IS which depends on system availability, accuracy, completeness, consistency, robustness, flexibility, unobtrusiveness.

Net benefits

A measure for the positive and negative impacts of the IS on all persons and groups affected with the IS (customers, suppliers, employees, organizations, markets, industries…etc) (Delone and Meclean, 2003). Net benefits can be identified with set of constructs that includes cost savings, expanded markets, incremental additional sales, reduced search costs, and time savings.

Delone and McLean's' model (D&M) presented in 2003 (Figure 2) can be classified as one of the most interested models in the area of measuring information systems success (Seddon, 1997; Gable et al, 2003). This model enables the applied theories in the area of IS measurement to take place (Seen et al, 2006). The model also specifies the dimensions of IS success in six groups and associated the relationship between those groups (Roldan and Leal, 2003). In addition the model takes in consideration the perspectives of all IS recipients. Therefore this study will use the D&M model and the developed measures for it’s dimensions to measure the information systems success.






ORGANIZATIONAL CULTURE IMPACT ON INFORMATION SYSTEMS SUCCESS ISMAIL M










Figure 2: D&M model – 2003

Source: (Delone and Mclean, 2003, p. 24(


2.3 Organizational Culture

Organizational culture is the way people live together (Douglas, 2005). Where culture is the collective programing of the human mind that distinguish the members of one human group from those of another, therefor culture is a system of collectively helpd values ( Hofsted, 1997). Schien (2005) defines organizational culture as the deeper level of basic assumptions and beliefs that are shared by members of an organization, that operate unconsciously and define in basic fashion an organization’s view of its self and its environment. Cameron and Quinn (1999, 2003) states that organizational culture refers to the taken-for-granted values, underlying assumptions, expectations, and definitions presented in an organization. It reflects the prevailing ideology that people carry inside their heads. It conveys a sense of identity to employees, provides unwritten and, often, unspoken guidelines for how to get along in the organization, and enhances the stability of the social system that they experienced.

whatever the definition of organizational culture, it functions in:


2.4 Models of Organizational Culture

There are a variety of qualitative and quantitative cultural models, that handles organizational culture from several perspectives. Hofsted (1997) cultural model focusing on comparing cultures between nations (Maull et al, 2001; Sornes et al, 2004; Fey and Denison, 2000; Chow et al, 2001). Schiens (2005) cultural model takes into consideration the cultural levels related to personnel, groups, and organizations. This model consists of both qualitative and quantitative measures that can be used to evaluate behaviour, and values of community people ( Maull et al, 2001). In addition measuring the degree of consistency between personnel and organizational cultures (Boan and Funderburk, 2003). Where Orielly (1991) cultural model can be used to compare organizational culture between organization (Bilskey and Jehn, 2002; Sarros et al, 2005). Scholes (1998) model, focusing on descrinbing personnel and groups culture (Dwyer, 2004). Where this model offers a more anecdotal and subjective view in describing the organizational culture (Yemm, 2006).

Denison (1990) developed a framework of culture characterized by two dimensions which are internal focus, or external focus, and stability and control, or flexibility and discretion. This model used as a part of diagnostic process in order to highlight the strenghts and weaknesses of organizational culture, and to suggest way in which the organizational culture may influence its effectiveness (Denison et al, 2004; Denison and Mishra, 1995).

Cameron and Quinn (2002) cultural model (Figure 3) presented organizational culture by two dimensions, which are internal focus vs external focus, and stability and control vs flexibility and discretion. Therefor the interaction between those two dimensions produces four types of organizational culture as followo:

  1. Clan culture: in this type organizations has a sense of cohesion, with goals that are shared, concentrating on internal maintenance with flexibilty, concerns of people, and sensitivity to customers.

  2. Adhocracy culture: in this type the emphasis is to be open to change, innovation, and concentrating on external positioning with high degree of flexibilty and individuality.

  3. Hierarchy culture: in this type the organization relies on formal sturctures, policeis, procedures, and focusing on internal maintenance with a need for stability and control.

  4. Market culture: organizations are concerned about productivity, consistency, results, clarity with customers, focusing on external maintenance with a need for stability and control.

Therefore this study will use the Cameron and Quinn (2002) cultural model and the organizational culture assessment instrument (OCAI) to measure the organizational culture.


ORGANIZATIONAL CULTURE IMPACT ON INFORMATION SYSTEMS SUCCESS ISMAIL M

























Figure 3: The Cameron and Quinn Cultural Model (2002)

Source: (Cameron and Freeman,1991, p. 27; Berrio, 2003, p.7)


2.5 Organizational Culture and IS success

Organizational culture is one of the important determinants of information systems success (Michael et al, 2004; Mukama et al, 2005; Xiao, 2005). In his study of the organizational culture and patterns of information proccessing (Michael et al, 2004) finds that there is a significant differences across the four cultural types in all the dimensions of information proccessing, intensity and scope of information search is higher in market- driven culture followed by adhocracy, clan and hierarchy. Information filtering and processing activities are more intensive a hierarchical culture, followed by clan, market-driven and adhocratic cultures. Where (Xiao, 2005) finds that the culture that facilitates innovation improves information technology management practicies and organizational performance. (mukama et al, 2005) adds that organizational culture has a strong influence in health information systems development and implementation. Where the identification and understanding of meanings, norms, and power in organizational culture and the national context as well as in local situated context for health information system development and implementation, offers a step forward in current IS research in the health information systems field. The culture of an organization may play a major role in the adoption of information technology (Poku et al, 2002). In addition to the more concentration on market oreinted culture, the more affectvieness of information technology adoption.

  1. The research model

The research detailed model (Figure 4) incorporates IS success dimensions as dependent variables, and organizational culture as an independent variable. Thus the model includes ten constructs, six constructs of the IS success factors which is system quality, information quality, service quality, system usefulness, user satisfaction, and net benefits. In addition to other four constructs of the organizational culture which is adhocracy culture, clan culture, hierarchy culture, and market culture.

Therefore the model reflects a comprehensive insight for the impact of organizational culture on the IS success dimensions, in addition to classifying organizational culture in terms of their impact on IS success.



ORGANIZATIONAL CULTURE IMPACT ON INFORMATION SYSTEMS SUCCESS ISMAIL M


ORGANIZATIONAL CULTURE IMPACT ON INFORMATION SYSTEMS SUCCESS ISMAIL M










Figure4: The Research Detailed Model

  1. Conclusion and Recommendations

Prior studies indicates that in general there is an impact of organizational culture on information systems success, and plays a major role in the adoption on information systems and information technology. Where a significant differences across the four cultural types on all the dimensions of information proccessing, and the culture that facilitates innovation improves information technology management practicies. Where the identification and understanding of meanings, norms, and power in organizational culture and the national context as well as in local situated context for health information system development and implementation, offers a step forward in current IS research in the health information systems field.. In addition to the more concentration on market oreinted culture, the more affectvieness of information technology adoption.

This paper describes a comprehensive model that examines how organizational culture with it’s various types (clan, adhocracy, hierarchy, market) impacts the information systems success dimension (system quality, information quality, service quality, usability, user satisfaction, and net benefits), in order to classify the various constructs of organizational culture in terms of their impact on information systems success.

A future research will include imperical testing of the model in the Palestinian General Universities in Paletine.

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