Corporate Knows Best (Maybe): The Impact of Global versus Local IT Capabilities on Business Unit Agility

Date
2018-01-03
Authors
Queiroz, Magno
Tallon, Paul
Coltman, Tim
Sharma, Rajeev
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The relationship between the corporate unit and its strategic business units (SBUs) has been variously described in the IS literature as either antagonistic or affable. At a time when corporate units are considering how to share platform-based capabilities (dubbed global IT) with SBUs, some SBUs may feel a loss of control while others see it as a chance to focus local IT on solving problems that are best handled by SBUs. Using data from an international survey of CIOs in the U.S., Germany, and Australia, we find that platform or global IT capabilities are associated with higher SBU agility notably when SBUs operate in a relatively stable environment. We also find that local IT influences SBU agility, particularly if SBUs have high levels of IT autonomy. Thus, the search for SBU agility may prompt corporate units to balance use of local and global IT resources and capabilities.
Description
Keywords
Strategy, Information, Technology, Economics, and Society (SITES), Agility, Business Unit, IT Autonomy, IT Platform
Citation
Rights
Access Rights
Email libraryada-l@lists.hawaii.edu if you need this content in ADA-compliant format.