Understanding the relationship between information systems investment and organisational performance: developing and testing a conceptual model in the Australian financial services sector

The research reported in this thesis was an exploratory study that investigated the relationship between Information Systems (IS) investment and organisational performance and which led to the successfd development and testing of a combined process and variance model that sought to explain this complex relationship. The focal industry was the Australian Financial Services Sector (FSS), with samples being drawn from both the credit union industry (largest industry by size in the FSS) and the commercial/retail bank industry (largest industry by volume). The research began with a detailed review of the literature and thus explored the concepts underlying the business value of IS in general and the relationship between IS investment and organisational performance in particular. To fuaher enhance understanding of this literature, a meta-analysis of the business value of IS in general, and IS investment and organisational performance in particular, was undertaken as it was noted that there did not appear to have been any such formal structured meta-analyses to date. The foregoing analyses led to the proposal and development of a conceptual model of the relationship between IS investment and organisational performance that was comprised of four main components, the level of IS investment as represented by the IT portfolio, Organisational performance (both internal and external), Considerations for Strategic Information Systems Planning and Managerial effectiveness. In addition, the conceptual model explicitly considered the effect and impact of Context on the conceptual model. Further, analysis of subsequent results was strongly grounded in the literature and utilised three key theoretical foundations, General Systems Theory, The Resource Based View of IT and Stakeholder theory.