Theories and Models of IT business - Literature review Example

? Theories and Models of IT business There has been some uncertainty and debates about what we know and what we do not, despite the research by managers and policy makers on how information technology contributes to organizational performance. This literature review shows that organization performances and information technology are divergent in how they conceptualize key constructs and their interrelationships by examining the association. Integration of various strands of research into a single framework makes it possible for the development of models of Information technology business based on the resources-based views. There are more reasons to justify why it is essential to invest on Information technology, although other fail view Information Technology as a business venture that can pay off after some time (Carlos and Macada, 2012). This discussion will look at the relevant theories and models on IT business values, different views on Information Technology business value and effectiveness and efficiency of information systems to support decision making. In order to understand the effectiveness and efficiency of information systems on decision making a lot of factors must be put into consideration. Using of technical efficiency as a performance criterion when application of individual analytical occurs. Information technology contributions in different countries differ in magnitude from a production point of view due to increase and decrease of the countries technical efficiency. Spending on Information technology will not improve countries technical efficiency. Whether a country is developing or not, is not a subject to look at in order for it to improve its technical efficiency in the field of information technology. Relevant use of theories and models and good decision makes it possible for a country to have an efficient and effective Information technology. Several theories explain the association of technology with the discipline of science communication, and technology study. These theories look at the relationship between society and technology, and address on questions about autonomy, agency, and teleology. Categorization of these theories is into a group and social theories. In addition, one can differentiate between descriptive and critical theories. Defining the substance of technology, how it changes its relation towards human practices or social structure, and how it emerges are addressed by Descriptive theories. The descriptive theories view that how much force it has in determining human practices or social structure, and how much it addresses the extent in which technology is autonomous substantively. Social construction of technology in connection to descriptive approach states that, technology does not necessarily determine human action; on the contrary it is the human actions that shape technology. Actor-network theory is also necessary theory in business IT. This theory addresses a heterogeneous network of non-humans and humans as similar interrelating actors. Technology acceptance model (TAM) is a well known model that relates to Information technology use and acceptance. This model was originally proposed by Davis in 1986. This theoretical model has continuously proven to be of great help because it predicts and explains user behavior of information technology. This model is also considered to be an influential extension of theory of reasoned action (TRA) (Heijden, 2000). Its mandate was to explain why a user rejects or accepts information technology by adapting theory of reasoned action. By the use of technology acceptance model one can menage to get the basis to trace how external forces influence attitude, belief, and intentions to use. There are two cognitive beliefs that are associated with technology acceptance model. These are perceived ease to use and perceived usefulness. According to technology acceptance model, one use of a technology system is manipulated either directly or indirectly by the user’s attitude, behavioral intentions, perceived ease of the system, and perceived usefulness of the system. The external factors interfere with the actual use through a mediated effect on perceived ease of use and perceived usefulness. Explanations as to why most people use and adopt e-learning has been realized by studies that have been carried out in the previous years, examining technology acceptance model. It is important to examine technology acceptance model by use of web-based learning. This model has turned out to be effective and efficient thus majority of people have adopted it in relation to technology. Its is important to note that perceived ease of use is the extent one believes that using e-learning is free of cognitive effort. On the other hand, perceived usefulness is a state where the university students believe that the use of e-learning will boost their grades. One significant of information technology research is to clearly understand the link between individual performance and information technology. Task technology fit model supports the technology acceptance model by looking at how a task affects use. According to task technology model, technology adoption solely depends on how good the new technology fits the requirements of a given task. If the intended technology is fit for its intended task, it will be adapted with immediate effect. Successful acceptance of task technology fit model in decision support is evident in recent years. In electronic marketing, how well the consumer feels web technology fits the task can be related to the use The principal theoretical perspective on technology acceptance is the Technology to performance chain. It application is at both individual and organizational levels of analysis. It is solely meant to provide accounts in which technological innovation moves from invention stage to the widespread of that innovation. This theory offers a conceptual framework for discussing acceptance at a global level despite the fact that this theory is not fully concerned with the information technology. Information technology contributes a lot in a country level by use of production theory in micro economy (Lin, 2009). Five characteristics of innovations affect the Technology to performance chain. These characteristics include the relative advantages to the level at which technology offers improvement over currently available tools, the complexity; how easy the theory is to learn, compatibility; a chance to test an innovation before fully using it, it is observable; a chance to view the final product of an innovation and the clarity view of its benefits. Three characteristics have greater effects on the adoption of innovation are complexity, compatibility and relative advantage. Complexity is viewed to have a negative influence on innovation adoption, whereas relative advantage and compatibility have a positive advantage over the adoption innovation at marginal significant. However, one character which is viewed as ambiguous is relative advantage. This is because the criteria used to judge what is advantageous are not properly defined. Extensive efforts to come up with an instrument which can be used to evaluate user perception of IT innovation is through extending and examine these characteristics. The factors at the level of the individual are essential in the Technology to performance chain. Innovation and technology adopters are divided into five categories (Al-Omari, 2012). This depends with their speed of uptake that is the early majority, innovators, early adopters, late majority, and laggards. In addition, technology is posed so as to critique and or emphasize aspects of technology as it has been addressed by mainline theories. Technology is look upon as textual evidence in the plan to critique the sociology of scientific information. This is to distinguish to differentiate it from the three responses to that notion to that applied technology. These three responses include reflexive response, interpretive response, and instrumental response (Dehning, 2001). The reflexive response is also referred to as a double hermeneutic response. Interpretive response views technology in response to environmental or organizational influences. Instrumental responses can also be referred to as an interpretive flexibility. Secondly, technology is viewed as a drama to argue about the social structures discursively regulates the technological construction of political power and to have a recursive structuring of technological artifacts. Statements and counter statement of technological drama is discoursed within the process of adjustment, regularization adjustment, and reconstruction. The technological theories that address how media affects groups’ process are referred to as group theories. These theories are much concerned with the consequences of the media choices, question of media choice, and the social effect of communication media. The group theories solely address the social effects of using particular communication media. Group theories include media richness theory, social presence theory, and media naturalness theory. Media richness theory states that the amount of information to be communicated will differ in response to media richness. The main goal of this theory is to resolve ambiguity and reduce uncertainty. Social presence theory addresses the social effects of communication technology (Khosrowpour, 1999). The social presence allowed by communicators is determined by the social impact of communication media. Increase in social influence is expected with an increase in key components such as immediacy, intimacy, warmth, and interpersonal rapport. Therefore, social influence will increase in respect to increase to social presence. Media naturalness theory is proposed as an alternative to media richness theory, and it is solely built on human evolution idea. Ancestors have been communicating face to face, and thus making the mind adapt to such communication. Brains cannot be adaptive to new forms of communication because they do not pose any evolutionary pressure. Posing of cognitive communication happens when there is an application of mechanisms that crack down on essential components found in face-to-face conversation. Information system is a combination of software, hardware, trained personnel and infrastructure organized to facilitate control, coordination, planning, and decision making in an organization. For a proper functioning of an organization, decision making should be an integral part of that organization. It is essential to have proper management information systems so as to facilitate decision making in an organization. Financing MIS is important because it allows adequate use of MIS in decision making and free flow of information (Fadekemi, 2007). The gap between needs and expectation is realized when managers have the right information systems. Adequate management information systems are needed at all hours to facilitate better flow of information. Information got from the data that an information system processes gives them adequate information for better decision making, program implementation, planning, and control. Available technologies allow an organization to results to timely transitions. To increasing the performance of a company it is essential to have a proper flow of information system. This information system will facilitate and synchronize the efficiency and effectiveness in decision making in an organization. Efficiency of information system is primarily concerned with effectiveness and cost minimization concepts, and the achievements of the organizational goals. Effective and efficiency of an information system is the core features that determine making of appropriate and meaningful decision making of any organization. Survival of a business solely depends on five competitive strategies. These basic competitive strategies are based on three generic strategies of broad differentiation, broad cost leadership, and focused strategy. Information systems are critical enabler of the five competitive strategies which include differentiation, leadership, growth, alliance, and innovation (Hendrickson, 2009). In running of a business, the wellbeing and health of an organization is determined through all forms of value. Majority of business values cannot be measured in monetary terms. Intangible assets are not necessarily attributable to any stakeholders groups which are embraced by business values. One of the most popular methods of measuring and managing business value is through a balanced scorecard methodology. All parties receive value in a win-win relationship and cooperative in view to business value concept. Incentives are very significant, and that those incentives go beyond direct financial compensation even when nodes of the network are not fully independent. In conclusion, it is essential to note that for an organization to perform to its intended goals; proper information system frameworks should be set. Use of relevant theories and models in Information Technology will promote efficiency and effectiveness of an organization leading to the realization of its short term and long term goals. Organizations all over the world should emphasize on the use of proper information system concepts, relevant theories and models of business to improve the status of the organization and avoid failure of the business. References Al-Omari, B. M. A. 2012. The Impact of Infosrmation Technology in the Process of Managerial Decision-Making A Field Study in Jordanian Touristic Companies, 50(50) Carlos, A. & Macada, G., 2012. IT Business Value Model for Information Intensive Organizations. , pp.44–65 Dehning & Richardson. 2001, Returns on Investments in Information Technology: A Research Synthesis Fadekemi, F. 2007. The Use of Management Information Systems (MIS ) In Decision Making In The South-West Nigerian Universities, 109–116. Feenberg, A. 2002. Transforming technology a critical theory revisited. New York, N.Y: Oxford University Press. Heijden, H. v. 2000. e-TAM: a revision of the technology acceptance model to explain website revisits. Amsterdam: Vrije Universiteit. Hendrickson, D. 2009. The Business Value of Information Technology is Now a Competitive Differentiator, 1–3. Khosrowpour, M. 1999. Managing information technology resources in organizations in the next millennium : 1999 Information Resources Management Association International Conference, Hershey, PA, USA, May 16-19, 1999. Hershey Pa: Idea Group Pub Lin, W.T., 2009. The business value of information technology as measured by technical efficiency: Evidence from country-level data. Decision Support Systems, 46(4), pp.865–874.  Melville, N., Kraemer, K.L. & Gurbaxani, V., 2004. Information Technology and Organizational Performance?: An Integrative Model of IT Business Value Peters, G., & Poon, S. 2011. Analyzing IT business values – A Dominance based Rough Sets Approach perspective. Expert Systems with Applications, 38(9), 11120–11128.  Read More