THE CONTRIBUTION OF SHARED KNOWLEDGE TO IS GROUP-PERFORMANCE

A major issue facing managers of information systems organizations is the increasing pressure to demonstrate the business value of the firm' s investment in information technology. The working relationship betwe en the IS department and other diverse organizational groups can have a major contribution to increasing IS performance. This paper explores the concept of shared knowledge between IS groups and their line cust omers as a contributor to IS performance. Shared knowledge is achieved through the mechanisms of mutual trust and influence between these gr oups. The relationship of mutual trust, influence, and shared knowledg e with IS performance is tested empirically using path analysis in a s tudy of 86 IS departments. The results of this study show that shared knowledge mediates the relationship between IS performance and trust a nd influence and that increasing levels of shared knowledge between IS and line groups leads to increased IS performance. Recommendations ar e given for ways managers can develop mutual trust and influence betwe en these diverse groups and, therefore, achieve higher levels of share d knowledge and IS performance.