The Role of Information Systems and Organizational Communication Culture in Transforming a Business Function

Introduction

Demonstrating the value of information systems (IS) is a central issue in the IS discipline, and a significant body of research has examined the organizational performance impacts of IS (Chae et al., 2014; Hensen & Dong, 2020; Mithas & Rust, 2016; Mithas et al., 2017; Nevo & Wade, 2010; Rodrigues et al., 2021; Wade & Hulland, 2004; Weill, 1992). These studies have primarily focused on firm-level operational consequences that represent the organization’s overall efficiencies by using profitability and productivity measures, such as return on assets, return on investment, revenue, cost reduction, inventory turnover, and cycle time reduction (Davis et al., 2002; Huang & Wang, 2013; Nicolaou, 2004; Ong & Chen, 2013; Rogers et al., 1996; Sabherwal & Jeyaraj, 2015; Saldanha et al., 2013; Sanders & Premus, 2002; Sriram & Stump, 2004; Stratopoulos & Dehning, 2000; Vinekar & Teng, 2012; Yao et al., 2009; Zhu & Kraemer, 2002). However, the potential of IS can go beyond the improvement of operational efficiency, and can contribute to transformational changes that involve in changing the way of working and businesses process, or redefining an organization’s role. Also, the outcome variables represent firm-level performance that captures to what extent a firm gains benefits, but cannot give information on the results of information systems at a lower-level, such as department and business functions. In addition, several scholars contend that cultural factors play vital roles in the IT business value (Cabrera et al., 2001; Chandler et al., 2000; Jackson, 2011; Leidner & Kayworth, 2006; Shao, 2019). Anecdotal evidence, case studies, and conceptual studies suggest that organizational culture is a major component in influencing an organization’s ability to adopt and use information systems to enhance performance (Doherty & Doig, 2003; El Sawy, 1985; Jackson, 2011; Serafeimidis & Smithson, 1999; Zammuto & O'Connor, 1992). Despite the potential importance of organizational culture in IT business value, there is little empirical research on the topic. An important cultural variable linked with IT performance is an open and participatory communication culture in an organization (Powell & Dent-Micallef, 1997). The benefits of IS may be negated by structural, relational, and communicational constrictions, such as limited access to information, top-down communication, and autocratic command and control (Zuboff, 1988). Thus, this study investigates the transformational impact of information systems on a business function, and the complementarity between information systems and organizational communication culture.