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Virginia Commonwealth University VCU Scholars Compass Theses and Dissertations Graduate School 2009 Building and Testing Theory on the Role of IT in the Relationship between Power and Performance: Implementing Enterprise Performance Management in the Organization Mitchell Wenger Virginia Commonwealth University Follow this and additional works at: https://scholarscompass.vcu.edu/etd Part of the Management Information Systems Commons © The Author Downloaded from https://scholarscompass.vcu.edu/etd/1784 This Dissertation is brought to you for free and open access by the Graduate School at VCU Scholars Compass. It has been accepted for inclusion in Theses and Dissertations by an authorized administrator of VCU Scholars Compass. For more information, please contact [email protected]. © Mitchell R. Wenger, 2009 All Rights Reserved © Mitchell R. Wenger, 2009 Page i Building and Testing Theory on the Role of IT in the Relationship between Power and Performance: Implementing Enterprise Performance Management in the Organization A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy at Virginia Commonwealth University. By Mitchell R. Wenger Virginia Commonwealth University [email protected] Masters in Business Administration University of Texas at Arlington, Arlington, TX, 1984 Bachelor of Science in Accountancy University of Illinois, Urbana-Champaign, IL, 1982 Chair: Dr. Allen S. Lee Professor and Associate Dean for Research & Graduate Studies Department of Information Systems Co-Chair: Gurpreet Dhillon Professor, Department of Information Systems Virginia Commonwealth University Richmond, Virginia, USA April, 2009 © Mitchell R. Wenger, 2009 Page ii Acknowledgements This dissertation, along with the degree work leading up to it, would not have been possible without the support of my wife Deb. She backed my decision to undertake this endeavor without hesitation. My son Jay – new to this world as I began this journey – has also been a source of inspiration throughout. I would also like to acknowledge my mother and father, who instilled in me a lifelong inquisitiveness that will help carry me through my academic career, and my mother-in-law and late father-in-law, who continue to remind me that life is to be enjoyed. Thanks go first to Dr. Allen Lee, my dissertation chair. He was infinitely patient in guiding a raw, stubborn scholar through the initial stages of becoming an academic. His mastery of research methods was instrumental in shaping my approach to this work. His deft approach, simultaneously subtle and to-the-point, is one that I will strive to emulate in my teaching career. Thanks also go to Dr. Gurpreet Dhillon, my co-chair. His ability to counter my perspectives with alternate approaches from a variety of disciplines helped clarify my presentation of arguments and findings. Thanks also to Dr. Carolyn Norman, whose observations on my early drafts helped shape the direction of my final product. Another round of thanks goes to Dr. Rich Redmond and Dr. Amita Chin, who provided helpful comments at key points in the development of this work. A final round of thanks goes to my colleagues at the VCU School of Business. Their encouragement and sharing of their own struggles helped give me the strength to complete this odyssey. © Mitchell R. Wenger, 2009 Page iii Abstract This research builds on the literature about power and performance, offering new theory that extends the literature by accounting for the transformational effects of information technology. The role of information technology in the relationship between organizational power and performance is unclear in the literature. Management literature offers theories describing the relationship between power and performance. IS literature investigates the relationship between information technology (IT) and power and between information systems technology and performance, but is silent on the impact of IT on the relationship between power and performance. The nature of this relationship – direct, moderating, or indirect – is unknown. Due to the ubiquity of information technology in organizations and society, it is necessary to theorize on the relationship between IT, power and performance. This study evaluates the implementation of Enterprise Performance Management (EPM) solutions in two case study organizations. The use of the IT portion of the EPM is the event of interest. In one case, the EPM implementation is considered a success. In the other, the EPM implementation is considered unsuccessful. Findings from each organization are compared and used to determine the overall research findings. The findings demonstrate the transformational potential of IT on the relationship between power and performance and provide insights that may lead to a deeper understanding of each. The findings of this case study point the way toward development of more detailed constructs and propositions that are testable, measurable, and refutable. Keywords: information systems (IS), information technology (IT), business/corporate/enterprise performance management (EPM), business intelligence, implementation theory, case study, power, performance measures, enterprise systems © Mitchell R. Wenger, 2009 Page iv Theorizing the Role of IT in the Relationship between Power and Performance: Implementing Enterprise Performance Management in the Organization Table of Contents Acknowledgements....................................................................................................... iii Abstract ......................................................................................................................... iv 1 Introduction............................................................................................................. 1 1.1 Overview .......................................................................................................... 1 1.2 Problem Definition and Research Question ..................................................... 2 1.3 Definitions ........................................................................................................ 5 1.4 Organization of this Dissertation.................................................................... 14 2 Literature Review.................................................................................................. 16 2.1 Review of the Academic Literature................................................................ 17 2.1.1 Power and IT in Organizations................................................................ 17 2.1.2 Performance and IT................................................................................. 26 2.1.3 Enterprise Performance Management ..................................................... 34 2.2 Review of the Practitioner Literature ............................................................. 36 2.2.1 Enterprise Performance Management in the Practitioner Literature....... 36 2.3 Summary of the Literature.............................................................................. 37 3 Research Approach and Design ............................................................................ 39 3.1 Theoretical Positioning................................................................................... 39 3.2 Research Propositions..................................................................................... 46 © Mitchell R. Wenger, 2009 Page v 3.3 Methodological Approach used in this Study................................................. 52 3.4 Research Design ............................................................................................. 53 3.4.1 Data Collection........................................................................................ 57 3.4.2 Data Analysis .......................................................................................... 65 3.5 Summary of the Research Approach and Design........................................... 66 4 Data Collection ..................................................................................................... 67 4.1 Case 1 – Capitol State University (CSU) ....................................................... 67 4.1.1 Introduction to the Organization ............................................................. 67 4.1.2 Organizational Structure at CSU............................................................. 69 4.1.3 Implementation of Performance Management Technology at CSU ....... 72 4.1.4 Ongoing Use of IT at CSU...................................................................... 81 4.1.5 Analysis of empirical observations at CSU............................................. 83 4.2 Case 2 – Content Management Corporation (CMC)...................................... 86 4.2.1 Introduction to the Organization ............................................................. 86 4.2.2 Organizational Structure at CMC............................................................ 87 4.2.3 Implementation of Performance Management Technology at CMC...... 90 4.2.4 Analysis of empirical observations at CMC ......................................... 102 5 Research Findings............................................................................................... 105 5.1 Introduction to Findings ............................................................................... 105 5.2 Evaluating Case Findings against the Research Propositions ...................... 108 5.2.1 Capital State University .......................................................................

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