An empirically derived model of the role of IS networks in business process improvement initiatives

During the past two decades both business managers and academic researchers have shown considerable interest in information system (IS) networks and t heir effect on business processes and performance. The present study builds on this interest to examine the nature of IS networks and business process improvement initiatives (BPII) and delineate the process by which IS netwo rks influence BPII. Conceptually, both of these variables are considered mu ltidimensional constructs, with IS networks comprising connectivity and fle xibility dimensions and BPII involving process improvement initiatives and customer focus dimensions. We develop a model that elaborates on the interr elationships among these variables along with two key contextual antecedent s (management support and information intensity) and pose a series of hypot heses. We then present the results of an empirical test of the model that i nvolved structural equation modeling using data collected via a national ma il survey from executives from 'Fortune 500' divisions. Overall, the result s of the study found mixed support for our hypotheses. While network connec tivity and network flexibility were found to be significantly related to pr ocess improvement initiatives, network flexibility did not have any signifi cant effect on customer focus. The results of the study also indicate that top management support is significantly related to both IS network dimensio ns, which fully mediate top management support's influence on both BPII dim ensions. Information intensity was also found to be significantly related t o BPII and partially mediated by network flexibility with regard to process improvement initiatives. Implications of this study and directions for fut ure research are also discussed. (C) 2000 Elsevier Science Ltd. All rights reserved.