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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