The Relationship Between Information System Planning Sophistication and Information System Success: An Empirical Assessment*

Abstract

Literature on information systems (IS) planning implicitly assumes that a sophisticated IS planning process leads to greater IS success. This paper questions the exclusive reliance on this traditional belief. Instead, because IS planning requires significant organizational resources, prior IS success is essential to convince top management of the importance of IS planning sophistication. Therefore, IS success may influence IS planning sophistication. Several theoretical arguments are advanced in support of this explanation.Data from a survey of 236 academic institutions are used to empirically assess the two alternative directions of the relationship between IS planning sophistication and IS success. Four structural models including the alternative causal directions are evaluated. Two of these models are supported. Together, they imply that for a high level of IS planning sophistication, either the previous ISs should have been successful or the organization should possess advanced information technology capabilities. Thus, empirical results suggest that the explanation presented here (i.e., IS success facilitates IS planning sophistication) provides an equally good alternative to the more traditional explanation (i.e., IS planning sophistication facilitates IS success). Subject Areas: Information Systems Planning, Management Information Sys- tems, Structural Equation Models, and Survey ResearcWDesign.*I am grateful to Peeter Kirs for his contribution to the data collection stage of the project upon which this paper is based. I also thank the associate editor and the two anonymous reviewers who provided several insightful comments which significantly contributed to the paper. 137

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