How the Internal Environment Impacts Information Systems Project Success: An Investigation of Exploitative and Explorative Firms

1. The author expresses thanks to Dr. Jeretta Horn Nord and two anonymous reviewers whose comments and suggestions have strengthened the quality of this paper. The author is also grateful to the University of South Florida St. Petersburg for funding this study.

Abstract

Problems impacting information systems (IS) projects are well recognized. However, there has been limited research on how a positive internal environment impacts successful IS planning implementation and, in turn, IS-oriented organizational success. This paper addresses these questions using structural equation modeling and data provided by 269 CIOs. A positive internal environment was represented by top management support of IS and business managers' participation in IS planning. This support was found to increase the likelihood of successful IS project implementation which also created the likelihood that IS would result in organizational success. Data were also tested for firms that used IS in an exploitative versus an explorative sense. Model fit for explorative firms was significantly higher. Results suggest that management behavior is vital to creating a positive IS environment for the successful project implementation and that exploitative firms may be less successful in creating such an environment. IS project planning and the absence of top management related implementation problems, but not the absence of other implementation problems, predicted IS-oriented organizational success.

• Strategic information systems planning
• project performance
• top management support
• firm performance
• structured equation modeling

Additional information

Notes on contributors

Grover S. Kearns

AUTHOR'S BIOGRAPHICAL INFORMATION

Grover S. Kearns is Associate Professor at the University of South Florida St. Petersburg. His research focuses on information systems strategic planning, knowledge management, and forensic accounting. He has presented his research at the International Conference on Information Systems, Decision Sciences Institute Conference, and other venues, and has been published, or is forthcoming, in journals such as IEEE Transactions on Engineering Management, Decision Sciences, Journal of Strategic Information Systems, Information & Management and elsewhere. He earned a Ph.D. in Decision Sciences and Information Systems from the University of Kentucky, an MBA from the University of Texas at Austin, and BA degrees in both Management and Accounting, and is a licensed CPA. Prior to his current position he was director of planning for an electric utility.