The mediating role of information technology in the decision‐making context

Abstract

Purpose -This paper seeks to contribute to the management literature by providing a theoretical frame. The authors analyze the dynamic relationship and interactions that exist between three organizational capabilities (collective intelligence, knowledge management and innovation) and the correlation with decision-making effectiveness. The aim is identifying the interaction between the different dimensions and the mediating role of information technology. Design/methodology/approach -The authors' research question is to determine how organization can combine these capabilities to create superior value and to understand the role played by information technology. Their conceptual model is founded on the interconnection between different dynamic propositions. Findings -The authors find in the review of the literature that the different capabilities are interdependent and have a positive association with effective decision making and superior value creation.Research limitations/implications -The authors' theoretical model could incorporate other organizational capabilities, such as organizational performance. Additionally, ground experimentation and simulation are needed to confirm their proposal. Practical implications -The findings carry theoretical implications for the decision-making literature as they extend the scope of the research on information technology management. Moreover, this research allows managers to recognize better how to manage their employees effectively and to extend their strategy space with the aim of identifying new managerial practices. Originality/value -The conceptual model links various organizational capabilities with strategic notions in the management of organizations. The goal of this theoretical article is to understand how three organizational capabilities affect firms' decision making and how information technology can optimize the process.

Information technology for competitive advantage within logistics and supply chains: A review

“…Adaptation studies discuss how supply chains can be adjusted "to accommodate market changes" (Lee, 2004: p. 1) ( Table 2). Accommodating market changes, hence, means decisions in terms of variables that relate to outsourcing decisions and the role of IT outsourcing and post contract adaption and governance (Susarla, 2012); internal capability development and acquisition, that is, how IT capabilities influence inventory efficiency of firms and shareholders' wealth (Mishra et al, 2013) and mass customization (Peng et al, 2011), innovation and the creation of appropriate competencies through IT (Gordon & Tarafdar, 2007), and how organizations with the support of IT can combine capabilities to create superior value in responding to customer requirements (Boulesnane & Bouzidi, 2013). Studies also adopted a learning capability perspective with Saraf et al (2013) evaluating the assimilation stage of enterprise systems based on the relationship between external institutional pressure and degree of assimilation, whereas Zahay and Handfield (2004) predicted the likelihood of learning and sharing in adopting B2B technologies.…”

“…The literature on triple-As underlines mostly the importance of IT for value creation and business performance, the role of resource commitment and IT resources on performance, and suggests that IT can be explored and exploited for SC innovation (e.g. Boulesnane and Bouzidi, 2013) and…”

Organization Behavior Changes Caused by Information and Communication Technologies

“…Data contains no meaning as it is the raw facts. When data are put in a meaningful mean it represents information (Boulesnane, Bouzidi, & Bouzidi, 2013). Knowledge is defined is the capacity to act and take decision based on experience and study.…”

“…Decision making. For many research the decision making process is to choose the suitable solution from different available solutions to the current issue (Boulesnane et al, 2013). According to Zeleny (2011) decision-making process is "an act of selecting the most desirable alternative and treats it, instead, as a process: a dynamic and interrelated unity of precision, decision and post decision stages".…”

“…People needs to analyse a lot of data to reach a strategic decision making, and the problem is not about how to store these data but how to manage them (Boulesnane et al, 2013). The advance in Information and communication technology make it easier and cheaper to store, reuse and manage data (Hedelin & Allwood, 2002).…”