1 AIT Asian Institute of Technology

An empirical study of information technology infrastructure flexibility and organizational performance : the case of Thailand

AuthorAnote Chanopas
Call NumberAIT Diss. no.SM-06-11
Subject(s)Information superhighway--Thailand
NoteA dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Management of Technology
PublisherAsian Institute of Technology
AbstractInformation technology (IT) and organizational impact studies have captured the attention of researchers and academicians for many decades. One of the more interesting topics has been the debate over IT investment and its payoffs for an organization. Research results have been so contradictory that these relationships have been described as positive, negative and insignificant. What is clear, however, is that business leaders rarely question IT investment, since it is now taken for granted in almost all organizations. They are now presented with a new dilemma. The question is no longer should we invest, but how should we invest? This research provides insight into this ongoing but multifaceted IT management concern by focusing on the importance of flexibility in IT infrastructure. The degree of flexibility in an organization's IT infrastructure is a major indicator of corporate freedom and of an organization's ability to quickly adapt to the constant changes inherent in highly competitive industries. This study offers a new framework for determining flexibility in IT infrastructure. Research methodology includes a comprehensive review of the relevant literature, interviews with I I industry experts and a field survey of 388 IT personnel with a wide range of experience. Factor analysis results expand on the four recognized components (connectivity, compatibility, modularity and IT personnel competency) from the literature by revealing five further components (scalability, continuity, rapidity, facility and modernity). Although the study reports different findings from the literature, the results complement rather than contradict the existing research framework. This study also develops a model to investigate the relationship between IT infrastructure flexibility and perceived organizational performance based on empirical evidence from Thailand's financial service industry. Primary data were collected through a mail survey of 193 organizations. Target respondents were either top- and mid-level managers in the IT department or people who were responsible for IT operations. A sample of 302 respondents from 111 organizations replied, which is an organizational response rate of 57.5 percent. Hierarchical regressions were mainly used to analyze data. The results indicate that all nine components of IT infrastructure flexibility make substantial and statistically significant contributions to organizational performance. Modernity and IT personnel competency strongly influence the relationship, while connectivity contributes the least. One of the practical implications of this study is that IT executives can apply its innovative framework to review the flexibility of an organization's IT infrastructure and develop a plan to fill any gaps. They can also prioritize critical investments in each characteristic of IT infrastructure flexibility. This study suggests organizations, especially those with limited budgets, that they should invest in modern technologies as well as educate their IT personnel to gain new knowledge. The study, however, warns against investing too much in IT infrastructure connections since this can lead to a low return. Another caveat would be that IT investment in itself does not ensure organizational success. The investment could pay off when properly used to create a flexible IT infrastructure
Year2006
TypeDissertation
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Donyaprueth Krairit
Examination Committee(s)Do Ba Khang;Tang, John C. S.;Islam, Nazrul;Vatcharapom Esichaikul;Meier, Andreas
Scholarship Donor(s)Royal Thai Government (RTG)
DegreeThesis (Ph.D.) - Asian Institute of Technology, 2006


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