IT Infrastructure Capabilities and Business Process Improvements: Association with IT Governance Characteristics

Abstract

It has been widely discussed in the management information systems (MIS) literature that the outcomes of information technologies (IT) and systems may be subject to the influence of the characteristics of the organization, including those of the IT and business leadership. This study was conducted to examine the relationships that may exist between IT infrastructure capabilities (ITC), business process improvements (BPI), and such IT governance-related constructs as the reporting relationship between the chief executive officer (CEO) and chief information officer (CIO), and senior management support of IT and BPI projects. Using a sample of 243 multinational and Hong Kong-listed firms operating in Greater China, this study yielded empirical support for the perceived achievement of capabilities in some dimensions of the IT infrastructure in the companies under study. It was found that the BPI construct was related to the reporting relationship between the CEO and CIO (CEO-CIO distance), and to the levels of senior management support. The dimensions of the ITC construct were also investigated and identified by an exploratory factor analysis (EFA). Associations were found between the selected organizational constructs and the ITC dimensions, except in two hypothesized relationships. Those between CEO-CIO distance and the ITC dimensions of data integration and training were not supported at the significance level of 0.05.