Modeling Alignment as a Higher Order

Nomological Framework

Rogier van de Wetering, PhD

The Open University of the Netherlands

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19th International Conference on Business Information Systems

July 7th 2016, Leipzig

Reference: Van de Wetering, R., Modeling Alignment as a Higher Order Nomological

Framework, in International Conference on Business Information Systems. 2016, Springer

International Publishing: Leipzig, Germany. [download] [download]

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Short introduction

Professional experience

• 2015-now Assistant Professor, Management,

Science & Technology, Open University

• 2005-2015 Manager at Deloitte Consulting

• 2010-2013 External lecturer, medical

informatics, Utrecht University

• 2007-2011 PhD research, Utrecht University

Education

• PhD research (‘11), Faculty Mathematics & Computer

Sciences, Utrecht University (A Strategic PACS Maturity

Approach)

• Information Sciences (‘05), Utrecht University, Melbourne

University

Agenda

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1

Background and objectives

Overview of concepts

Framework development process

Main contributions

2

3

4

A nomological framework for BITA

Discussion and Q&A

5

6

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Main contributions of this study

01

02

03

Theoretical foundations of BITA

and mechanisms that govern firm

performance are unclear.

Development of an integrative

nomological framework to model

BITA and its foundational relationship

with firm performance.

This framework can be applied as an

useful checklist for organizations to

identify BITA improvement areas.

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Achieving BITA and pursuing intended goals and objectives seems an

intricate and poorly examined process and lacks convincing grounds

Business/IT-alignment

• Business/IT-alignment (BITA) has

been a major concern for executives

and IT practitioners for decades

• It remains a top priority (Wu, 2014)

• Strong theoretical foundations of

BITA have not been

developed/tested extensively

(Gerow et al., 2016)

Adaptivity and co-evolution

• Mechanisms that govern firm

performance and how BITA

contributes is unclear

• Increased attention towards the

adaptive and co-evolutionary nature

of IS/IT (Benbya et al., 2006)

• Science of complexity is a valuable

instrument to cope with various

organizational and IS/IT changes

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Develop an integrative nomological framework to model BITA and its

relationship with firm performance

Main objectives

• Literature does not provide

foundations to operationalize

constructs, relations etc.

• Understand BITA requires a ‘holistic’

and ‘complex’ theoretical framework

• Developing a nomological

framework

• Build upon earlier work (Van de

Wetering & Batenburg, 2011, 2014)

Research questions

• We address the following main

research questions:

RQ1: What is the role of complexity

science in understanding the

emergent nature of IS/IT?,

RQ2: How can BITA and its

relationship with performance be

modelled?,

RQ3: How can this framework

subsequently be operationalized?

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Overview of principle concepts

Business/IT-alignment Complexity science

IS/IT maturity

T

e

x

t

Concepts

IS/IT maturity models

provide insight into the

structure of elements that

represent process

effectiveness

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Overview of principle concepts

Business/IT-alignment Complexity science

IS/IT maturity

T

e

x

t

Concepts

Applying IS/IT in harmony

with business strategies,

goals and needs (synergy

among various

dimensions)

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Overview of principle concepts

Business/IT-alignment Complexity science

IS/IT maturity

T

e

x

t

Concepts

Studies behavior of CAS:

co-evolving, massively

entangled and emergent.

Fits diversity of

components and their

interactions

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Commonly referred examples include financial markets, weather

systems, ant colonies and organizations

Shutterstock, (2013), Biomimicry [ONLINE]. Available at: https://s3-eu-west-

1.amazonaws.com/static.nextnature.net/app/uploads/2013/07/ant-bridge_2302146k-640x400.jpg [Accessed 29

June 2016].

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Framework development process

Incremental development process

• Initial stages of the design science

research methodology approach

(Peffers, 2007)

• Designing generalized nomological

framework (the artifact) to model

BITA / performance

• Followed analytical design

evaluation methods, guidelines and

a systematic process (Hevner, 2004)

Process steps

• Four interrelated process steps were

documented using a process-

deliverable diagram, PDD, (Van de

Weerd et al., 2008)

• Step 1: review & synthesize problem

• Step 2: designing initial concepts

• Step 3: initial design using reflection

• Step 4: improvement opportunities

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A generalized nomological framework was designed combining central

elements: (1) BITA, (2) maturity and (3) performance (explanandum)

Main dimensions

• Five dimensions (Scheper, ‘02; Van

de Wetering et al., ‘11, ‘14)

‒ (1) Strategy and Policy (S&P),

‒ (2) Organization and Processes (O&P),

‒ (3) Monitoring and Control (M&C),

‒ (4) Information Technology (IT) and

‒ (5) People and Culture (P&C)

• Modelled as independent constructs

using Structural Equation Modeling

(SEM)

Multistep approach

• Apply a multistep approach using

path modeling:

‒ First-order exogenous constructs

(different maturity levels)

‒ Second-order construct as the five

organizational dimensions

‒ Third-order construct, labeled as BITA,

as related to the underlying second-

order constructs

• Modeling type captured by

covariation pattern (Venkatraman,

‘89)

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Framework captures relationships between BITA and its impact on

performance and fits the ‘complexity science lens’

S&P

O&P

M&C

IT

P&C

BITA Perfor-

mance

External

Internal

3rd order 3rd order 2nd order 2nd order

β

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Conclusion and outlook

Conclusion

• BITA can be represented as the

interdependency of five dimensions

• Operationalization coincides with

covariation (or co-alignment) using

higher-order latent structures

• Define improvement activities along

the five organizational dimensions

Future research

• Empirically applying our nomological

framework is needed

• Did not explicitly address the

mediating and/or moderating impact

of environmental dynamics

• Apply BITA into the field of CNO’s

Q&A

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Contact

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dr. R. (Rogier) van de Wetering

Assistant Professor

Faculty Management, Science & Technology

nl.linkedin.com/in/rvandewetering

twitter.com/drvandewetering

researchgate.net/profile/Rogier_Van_de_Wetering2

openuniversiteit.academia.edu/RVanDeWetering