discussion#8

Telecommunications Steering Committee

Managing Telecommunications by Steering Committee

with firm size, planning practices, and top management recognition and support. As firms grow, they tend to more frequently use steering committees for interunit coordination, setting policies, allocating recourses, and monitoring pro- gress. These steering committees can also pro- mote organizational recognition and secure funding commitments for the telecommunications function.

By: Gholamreza Torkzadeh Information Systems and

Operations Management The University of Toledo 2801 West Bancroft Street Toledo, Ohio 43606 U.S.A.

Weidong Xia Information Systems and

Management Science Beijing University of Aeronautics

and Astronautics Beijing People's Republic of China

Abstract The increasing need for integration and the rapid growth of oniine systems have made telecom- munications a vital part of management informa- tion systems (MiS). in search of competitive advantage, organizations make significant in- vestments in teiecomunications. Telecommunica- tions management is becoming a top priority of information systems executives. The MIS litera- ture suggests that steering committees are effec- tive means of managing information systems. However, there is no information on how steer- ing committees impact the management of the telecommunications function. Drawing on organizational theory and MIS iiterature, a framework is presented that reiates firm size and telecommunications steering committees to pian- ning practices and organizational recognition and support. Using a survey of 137 organizations, this framework is examined. The results of this ex- ploratory research suggest that use of a telecom- munications steering committee is associated

' An earlier version of this article was presented at the DSI Na- tional Conference in Miami, Florida, November 1991.

Keywords: Telecommunications, steering com- mittee, strategic planning

ACM Categories: K.6.4, K.6.0, H.4.0, H.4.3

Introduction Telecommunications technology is evolving in- to a vital component of organizational strategy. By powerful combinations of communications and information processing systems, firms are creating new vehicles for achieving critical business goals. Management is learning how to harness telecommunications resources for ad- vanced marketing and logistics strategies to pro- vide competitive advantage applications. Changes wrought by telecommunications technology in information systems for air travel, financial markets, and distributions (Copeiand and McKenney, 1988; Ives and Learmonth, 1984) have altered the way these industries compete. Firms are discovering that managing the telecom- munications infrastructure and portfolio is as im- portant as managing the data resource. As networks help information technology reach all members of groups and organizations, oppor- tunities proliferate to support and change the ways companies compete.

Many firms use their data communications facilities for traditional activities such as timeshar- ing, inquiry and retrieval, data entry, and batch and transaction processing (Kriebel, 1984). But some of the most successful examples of infor- mation systems are those that use telecom- munications technology to link a company to its suppliers, distributors, or customers. For exam- ple, McKesson Drug Company's Economost created a direct link between the company and its customers and resulted in over 99 percent of orders being placed electronically (Clemons, 1991). Barclays de Zoete Wedd, the largest

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market maker in the United Kingdom (Essinger, 1988), introduced an automatic order-entry system for retail brokerage called TRADE, which doubled the share of its orders from some brokers and created a significant barrier to competitors.

It has been suggested that the emerging integra- tion of computers and communications tech- nology is expanding the realm of business opportunities (Hammer and Mangurian, 1987). The Harris Corporation's strategy to integrate telecommunications resources (McCauley, 1983) and Digital Equipment Corporation's ARPANET (Crawford, 1982) are successful examples hav- ing fundamental impacts on information systems effectiveness. Others suggest that the best way to manage computers is to manage the networks that connect them (Donovan, 1988). Examples of how retailers use information systems and telecommunications technology (Dolen, 1986) in- dicate how these firms view the network as a critical tool in seizing new business opportuni- ties, improving productivity and the quality of work life, and gaining a competitive edge in the marketplace.

Most large organizations make significant in- vestments in telecommunications resources. Such resources must be allocated wisely, and management practices must be established for the development and use of telecommunications technology. If it is mismanaged, the adverse results may involve permanent loss of com- petitive strength within the industry. This may in- clude, for example, loss of opportunities for: improving customer services, efficiently manag- ing diversified activities or sharing critical resources, globalizing operations, responding quickly to changing worldwide business condi- tions, or reducing overall costs. In this context, steering committees provide a mechanism to en- sure proper management; they have gained sig- nificant acceptance in many organizations for managing the information systems development resource (Doll and Torkzadeh, 1987; McKeen and Guimaraes, 1985).

Steering committees composed of top manage- ment, users, and service personnel can provide a broad perspective to focus on management of the telecommunications resource. Many similarities exist between telecommunications and information systems management practices. In communications-intensive information systems, the roles of computing and com-

municating are so intertwined that the business value of the communications and processing functions cannot be distinguished. However, to integrate telecommunications technology, firms need better coordination between organizational functions; these efforts may or may not be iden- tical to coordination within MIS. Therefore, each function may require a separate steering committee.

Little research has been done on the relationship between steering committees and management of the telecommunications function. Strategic telecommunications planning is also a relatively new, under-researched area. Research on the operating procedures and composition of steer- ing committees, as well as on their relationships with the telecommunications function, could be valuable in promoting the effective establishment of such committees.

To explore the effectiveness of steering commit- tees for the management of the telecommuni- cations function, this article first presents a framework that relates telecommunications steer- ing committees to firm size, planning practices, and organizational recognition and support. Then, using a survey of 137 corporations, this framework is explored further. The intent of this exploratory research is to discover areas in which further research is required.

A Framework for Telecommunications Steering Committees Previous research has examined the relationship between steering committees and management information systems. Doll and Torkzadeh (1987) report that firms having MIS steering committees are more likely to have an overall written plan for systems development, have separate plans and budgets for maintenance and new development, achieve mutual agreement on a set of criteria for deciding which projects to do first, and secure the organization's long- term commitment to pro- vide stable funding for systems development ac- titivies. Others report that steering committees improve the information systems project portfolio (McKeen and Guimaraes, 1985); promote a favorable psychological climate that positively im- pacts information systems success (Ein-Dor and Segev, 1978); and provide perceived benefits to

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top management, users, and data processing personnel (Drury, 1984).

Most research on organizational issues deals with information systems rather than specifically focuses on the telecommunications function. Reviewing more than 9,800 articles covering over 11 years of MIS research, Adams, et al. (1990) contend that researchers have not placed the same emphasis as practitioners on telecommuni- cations management. They contend that: "The majority of telecommunications research focuses on lower level management issues, such as in- stalling a network, rather than using IS for com- petitive advantage" (p. 35). They suggest more research in telecommunications is needed to pro- vide information systems executives with insights on how to manage the telecommunications function.

Although there are similarities between MIS and telecommunications steering committees, their focuses may vary. This is reflected in the management practices of telecommunications and information systems (Donovan, 1988; Premkumar and King, 1990). While MIS is con- sidered an established function within most organizations, the telecommunications function is generally still seeking recognition and support for its strategic role. Telecommunications has traditionally been a support unit within the information systems function. As its role in- creases, the telecommunications function may require an independent identity and organiza- tional recognition. A steering committee can focus attention to the use of telecommunications as a competitive weapon.

Telecommunications steering committee The telecommunications steering committee can act as a kind of board of directors by setting policies, allocating resources, and monitoring progress. It can be a liaison device, necessary as the organization grows, or it can be used to achieve interunit coordination via developing plans and improving planning effectiveness, set- ting priorities, and securing funding com- mitments. The steering committee can seek recognition and support for this new technology appropriate for its intended role in expanding the realm of business opportunities. The members of the committee are expected to view telecom-

munications as a corporate resource with in- vestments in it treated as a business within a business. The mission, policy, and vision for this business will be determined by the telecommu- nications steering committee. The composition and operation of such committees will differ among organizations. However, the membership typically includes executives from several functional areas of the firm providing a breadth of perspectives. The committee is usually chaired by a senior executive member, such as a vice president.

Research questions Organizational size is often cited as a major determinant of organizational structure and plan- ning (Blau and Schoenherr, 1971; Child and Mansfield, 1972; Miller, 1986; Pugh, etal., 1968; 1969). As organizations evolve and grow, infor- mation systems planning practices may become more formalized (Doll and Torkzadeh, 1987). As they do, steering committees will be used more frequently (Galbraith, 1973; Khandwalla, 1974). Large firms with complex distributed information processing systems face more organizational and personnel problems than technical ones (Felix and Harrison, 1984) and require more careful planning practices.

It has been suggested that a firm's planning prac- tices be conducted within an organizational con- text (Ein-Dor, 1978) and is influenced by the nature of the firm's strategic business plan (King, 1978), the function's competitive impact (Millar and Porter, 1985), and the business planning pro- cess (McLean and Soden, 1977). The methodol- ogies developed in MIS planning for the analysis of the business environment and to identify com- petitive advantage applications are equally ap- plicable in telecommunications; most strategic system applications are based on an integration of computer and telecommunications technology. This is specifically true as telecommunications technology creates what Konsynski and McFarlan (1990) call "information partnership" and provides a new basis for differentiation.

Significant research questions relate to the management and organizational structure of the telecommunications function. In this study, these research questions are expressed in terms of relationships to be examined through a set of propositions. Based on the review of the literature, four variables are expected to interact and in-

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Telecommunications Steering Committee

fluence telecommunications success: the size of the organization; liaison devices, such as steer- ing committees; planning practices; and organizational recognition and support (see Figure 1).

As organizations increase in size, they develop differentiated subunits and increase investment in telecommunications resources in search of ad- vanced marketing and logistics strategies. They tend to have steering committees to coordinate and monitor policy, resources, and progress. Telecommunications steering committees facilitate user and top management involvement

in this function. As a firm's size increases, the interunit coordinations become more complex. A steering committee can help create the necessary fit between the telecommunications and organizational strategies. This leads to

Proposition 1: Large firms are more iikeiy to have teiecommunications steering commit- tees (Link A).

Furthermore, as the organizations's number of employees, annual budget, or total assets grow and the telecommunications function deals with more complex development problems, it is ex-

Firm Size

r\

Telecommunications Steering Committee

D

Organizational Support and

Recognition for Telecommunications

•B-

Telecommunications Planning Practices

Figure 1. A Framework for Teiecommunications Steering Committees

190 MIS Quarterly/June 1992

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pected to have more systematic and formalized planning practices. Thus,

Proposition 2: Large firms are more likely to have formaiized planning practices for their teiecommunications function (Link B).

Telecommunications steering committees are ex- pected to link business strategy with telecommu- nications strategy by providing a forum where senior managers and users discuss direction, match corporate concerns with technological potential, and build commitment to policies. They are therefore expected to influence planning practices. Thus,

Proposition 3: Firms with teiecommunications steering committees are more iikeiy to have formaiized pianning practices for their teiecommunications functions (Link C).

Due to its dynamic, complex nature and its role in expanding the realm of business opportunities, telecommunications requires a long-term organizational commitment to provide adequate investment. Telecommunications steering com- mittees tend to enhance an executive's understanding and recognition of the business value and potential applications derived from this technology. Thus,

Proposition 4: Firms with teiecommunications steering committees are more iikeiy to pro- vide organizationai support and recognition for the teiecommunications functions (Link D).

The Study

In order to examine these four propositions, a questionnaire was developed and implemented. Using a directory of 3,000 MIS and telecom- munications managers/directors of firms in the United States, a list was compiled of individuals who, according to their titles, were responsible for the telecommunications function. The ques- tionnaire was mailed to 622 telecommunication managers. Responses were received from 137 firms (22 percent).

Sample characteristics Respondents' titles include: data communication director/manager, networl< director/manager, communication chief, communication coor- dinator, and data communication supervisor. The respondents are experienced professionals: 35 percent had been with their respective organiza- tions for more than 14 years, about 9 percent be- tween 11 to 14 years, 17 percent between 7 to 10 years, 25 percent between 3 to 6 years, and 14 percent for less than 3 years. Respondents represent a variety of industries (see Table 1).

Measures To more carefully assess the impact of steering committees on the level of support, top manage- ment understanding, and the firm's recognition of telecommunications, eight specific questions

Tabie 1. Respondents by Type of industry

Firm Type

Manufacturing and Processing Finance, Bani<ing, and Insurance Educational Institutions Wholesale and Retail Transportation, Communication, and Utilities Government Agencies Health Services/Hospitals Other

Total

Frequency

43 29 14 10 15 18 5

11

145*

Percentage

29.7 20.0

9.7 6.9

10.3 12.4 3.4 7.6

100.0

Some firms participate in more than one industry.

MIS Quarterly/June 1992 191

Teiecommunications Steering Committee

were developed using a scale varing from 1 (strongly agree) to 5 (strongly disagree). These questions measure the perceived importance of telecommunications for achieving the long- and short-term objectives to the organization. Multi- ple items were used to assess each scale.

To develop reliable, valid measures of organiza- tional support for telecommunications, the re- searchers employed well-established methods of instrument development (see the Appendix for details). The result is a five-item scale, shown in Table 2, for measuring organizational support for telecommunications. To examine the validity of this multiple-item scale, a single-item global scale measuring perceived overall organizational sup- port was also included in the questionnaire. This global measure asked: "Overall, how would you rate organizational support for the development of telecommunications in your organization?" Both the five-item and single-item global scales were used to examine the relationship between the telecommunications steering committee and organizational support.

Results The survey responses were used to examine the four propositions described earlier. The results presented here should be interpreted with cau- tion. Organizations participating in this study were not specifically collected for their size, though size is widely considered to be an impor- tant factor in determining organizational struc- ture. Furthermore, no study has specifically examined the relationships between size of firm, steering committees, planning practices, or top management support for the telecommunications function.

The results suggest that large firms are more like- ly to use telecommunications steering commit- tees. The respondents were classified into small (less than 500 employees) and large (500 or more employees) organizations. Large firms have a significant investment in information technology in search of competitive advantage, and telecom- munications infrastructure is vital for the success of this business objective. They tend to more fre- quently use liaison devices such as steering com- mittees to coordinate and monitor policy, resources, and progress. Large firms had significantly (p < .05) more telecommunications steering committees than small firms (see Table 3). Large and small firms were equally likely to have a telecommunications plan. This supports proposition 1, but not proposition 2.

Most (61 percent) telecommunications steering committees were comprised of representatives from various functional areas of the organization. Some (29.5 percent) included members of the in- formation systems department only, and a few (9.5 percent) were made up of top level manage- ment only. The steering committees existed in these firms from one to 10 years with an average of 3.7 years.

To more clearly identify the extent and nature of the steering committee's responsibilities, a set of eight questions was included in the question- naire. Respondents were asked to indicate whether each task was relevant to their steering committee. Tabie 4 shows the telecommu- nications steering committees' major tasks and, for each task, the percentage of times identified by the respondents. The organization's future needs for telecommunications and how it could contribute to accomplishing organizational objec- tives were most frequently mentioned. The steer-

Tabie 2. iMeasures of Organizationai Support

1. Top management understands the importance of telecommunications.

2. Top management supports the development of telecommunications.

3. Telecommunications capabilities are considered in the organization's strategic planning process.

4. Telecommunications has been recognized as an important tool in strategic planning.

5. Budget allocation toward telecommunications has been favorably considered by management.

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ing committees were less likely to be concerned with technical questions such as the integration of voice and data. These results are consistent with the definition and responsibilities of the telecommunications steering committee and are similar to the tasks for an MIS steering commit- tee as described in the literature.

The survey results indicate a significant (p < .001) relationship between steering committees and planning practices. One of the most impor- tant responsibilities of steering committees is to provide a plan consistent with the organizationai

objectives and strategies. In the past, the tele- communications function essentially performed the role of a support function and, hence, was shielded to a large extent from market forces. A steering committee is an effective mechanism for creating the necessary fit between telecom- munications technology and a business plan. In this sample, 96 percent of firms with steering committees had an overall plan for telecom- munications. Thus, proposition 3 is supported.

Unlike proposition 2 (large firms are more likely to have formalized planning practices for their

Tabie 3. The Reiationship of Firm Size to Teiecommunications Steering Committee and Planning Practices

Question

Do you have a committee that makes policy decisions relating to telecommunications?

Do you have an overall plan for telecommunications?

Percentage of Affirmative Responses

Smaii Large (n = 36) (n = 101)

25 40

86 78

Significance of Difference

Between Smali and Large Firms

p < .05

p < .15

Tabie 4. Tasks of Teiecommunications Steering Committee

Questionnaire item

Make decisions on future telecommunication needs of the organization.

Discuss how the development of telecommunications can contribute toward accomplishing organizational objectives.

Discuss how telecommunications could improve the performance of other operating functions.

Discuss how the telecommunications system can be managed to ensure the efficient and effective use of resources.

Discuss ways in which telecommunications technology can be used in strategic planning.

Meet regularly.

Discuss ways in which telecommunications technology can be used to achieve competitive advantage.

Decide how the integration of voice and data can be achieved.

Percentage of Affirmative Responses

96

96

94

92

87

81

77

71

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Teiecommunications Steering Committee

telecommunications), proposition 3 (firms with telecommunications steering committees are more likely to have formalized planning practices for their telecommunications function) is sup- ported; one might expect both to be supported. A possible explanation for these findings may be that smaller firms have MIS steering committees that also oversee telecommunications functions. The study did not include questions on MIS steer- ing committees.

i/\/ithin the responding organizations, firms with steering committees had significantly (p < .001) more overall support for the development of telecommunications in the organization. The telecommunications steering committees provide a forum where senior managers and representa- tives of other functional areas discuss direction and facilitate top management commitment, recognition, and support for telecommunications. Table 5 shows the specific nature of this recogni- tion and support for the telecornmunications func- tion. The mean responses for all measures are significantly (p < .05) different for firms with and without steering committees. This supports prop- osition 4.

These strategic or long-term issues are directly related to a firm's competitive advantage. The planning for telecommunications requires a multi- year horizon and, consequently, a close link to anticipated enterprise requirements. Recent studies have indicated the growing emphasis on the strategic role of the telecommunications func- tion within organizations (Premkumar and King, 1990).

Summary and Discussion Organizations invest significantly in their informa- tion systems and teiecommunications to ex- change information, enhance communication, and support business strategy. Telecommunica- tions technology has been used to improve pro- ductivity, enhance the delivery of product and services, raise barriers to entry for new com- petitors, or introduce switching costs to customers. The growth of telecommunications and its potential role in creating competitive ad- vantage for the organizations necessitates a greater understanding for its management and

how this function can best be used to achieve organizational objectives.

The technology strategy literature views technolo- gy as a means for implementing corporate strategy (Morone, 1989). The emphasis is on find- ing ways in which corporate technology efforts can be organized to fit and support company strategy. Morone suggests it is one thing to make technology decisions consistent with corporate strategy (technology strategy) and quite another to bring the potential opportunities that technology creates to bear on the formulation of corporate strategy (strategic use of technology). He contends the strategic use of technology oc- curs when technology-based opportunities become integral to corporate strategy, so integral that they are viewed not as "technology" but as "strategic opportunities."

The results of this study suggest that liaison devices such as steering committees or task forces might be important mechanisms for managing the telecommunications function and may help the strategic use of this technology. Such policy-making and monitoring committees can be an effective avenue for top-management involvement in the successful development of telecommunications. Their work can facilitate organizationai recognition and support for this function. As the role of telecommunications in creating a competitive advantage is increased, organizations will likely tend to develop a more systematic and formalized approach toward the management of this function. Steering committees also tend to reduce planning problems facing telecommunications managers while providing necessary congruence between the telecommu- nications plan and organizational objectives. Large firms, due to their level of investment in informa- tion technology and the complexity of their organizational and strategic issues, tend to rely more on steering committees.

These findings have potential implications for the manager of a telecommunications function. Telecommunications technology is moving up on the priority list of many organizations; it may therefore benefit from its own steering committee. The emerging network technology, increasing complexity, and wider offerings available after the deregulation of the industry necessitate careful in- terunit coordination, resource planning, and con- tinuous improvement in order to achieve and

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Table 5. The Relationship of Telecommunications Steering Committee to Organizationai Recognition and Support

Questionnaire item

1. Top management understands the importance of telecommunications.

2. Top management supports the development of telecommunications.

3. Telecommunications capabilities are considered in the organization's strategic planning process.

4. Telecommunications has been recognized as an im- portant tool in strategic planning.

5. Budget allocation toward telecommunications has been favorably considered by management.

iVieans of

Firms With

Committee

2.04

1.94

2.31

2.13

2.18

Responses

Firms Without

Committee

2.45*

2.43**

2.71*

2.63*

2.75**

Note: Respondents' perceptions were measured on five-point Likert-type scales; * p < .05; ** p < .001.

support business objectives. The telecom- munications planning process must be as close- ly linked to business needs as it is to technological opportunities. The telecommunications steering committee can produce a portfolio of justified communications and networks development plans that contribute to business success.

Several important research questions are related to the management of the telecommunications function. Further research efforts might focus on: (1) examining the relationship between the telecommunications steering committee and the MIS steering committee; (2) examining deregula- tion of the industry and its impact on planning practices; (3) studying the impact of business en- vironment on the telecommunications function; (4) assessing the relationships between telecom- munications steering committees and the pattern of competitive advantage in organizations; (5) evaluating the role and impact of steering com- mittees for the successful development of telecommunications; and (6) studying the dif- ferences in structure, composition, and role of telecommunications steering committees in dif- ferent industries. While some firms seize upon the strategic opportunities provided by telecom-

munications technology, others fail to do so. We need to better understand the actual behavior of firms and why different firms facing similar situa- tions respond differently.

Conciusions This study has developed and assessed a set of relationships between firm size, telecom- munications steering committees, planning prac- tices, and organizational support. The results suggest that telecommunications technology of- fers a strategic opportunity that requires increased management attention. Finding and evaluating strategic opportunities to use telecommunications technology and justifying the decision to make the necessary investment for this technology require a set of more focused management skills different from those historically required of information systems executives. Investing in this technology, assessing its strategic value, and securing stable funding for its enhancement and maintenance all require a careful management approach. Rapid expansion and deregulation of the telecommu- nications industry increases the risk of failure. Steering committees are important mechanisms

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Telecommunications Steering Committee

for managing that risk for the telecommunications function. They facilitate recognition and support and can play a strategic role in the application of telecommunications. These committees can pro- vide a more careful planning approach that can facilitate alignment with overarching organizational objectives. For an organization with an expensive investment in telecommunications, a steering committee may be a necessity.

Acknowledgement We would like to thank T.S. Raghunathan for his comments on an earlier draft of this article.

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Doll, W.J. and Torkzadeh, G. "The Relationship of MIS Steering Committee to Size of Firm and Formalization of MIS Planning," Communica- tions of the ACM (30:11), November 1987, pp. 972-978.

Donovan, J.J. "Beyond Chief Information Officer to Network Manager," Harvard Business

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Drury, D.H. "An Evaluation of Data Processing Steering Committees," MIS Quarterly (8:4), December 1984, pp. 257-265.

Ein-Dor, P. and Segev, E. "Organizational Con- text and the Success of Management Informa- tion Systems," Management Science (24:10), June 1978, pp. 1064-1077.

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Felix, R.G. and Harrison, W.L. "Project Manage- ment Considerations for Distributed Process- ing Applications," MIS Quarterly (8:3), September 1984, pp. 161-170.

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Hammer, M. and Mangurian, G.E. "The Chang- ing Value of Communications Technology," Sloan Management Review (29:2), Winter 1987, pp. 65-71.

Ives, B. and Learmonth, G.P. "The Information System As A Competitive W e a p o n , " Communications of the ACM (27:12), December 1984, pp. 1193-1201.

Kerlinger, F.N. Foundations of Behavioral Research, McGraw-Hill, New York, NY, 1978.

Khandwalla, P.N. "Mass Output Orientation of Operations Technology and Organizational Structure," Administrative Science Quarter- ly (^ 9.:), March 1974, pp. 74-97.

King, W.R. "Strategic Planning for Management Information Systems," MIS Quarterly (2:1), March 1978, pp. 27-37.

Konsynski, B.R. and McFarlan, F.W. "Informa- tion Partnerships - Shared Data, Shared Scale," Harvard Business Review (68:5), September-October 1990, pp. 114-120.

Kriebel, C.H. "A Survey of the MIS and Telecom- munications Activities of Major Business Firms," MIS Quarterly (8:3), September 1984, pp. 171-177.

McCauley, H.N. "Developing a Corporate Private Network," MIS Quarterly (7:4), December 1983, pp. 19-33.

McKeen, J.D. and Guimaraes, T. "Selecting MIS Projects by Steering Committee," Communi- cations of the ACM (28:12), December 1985, pp. 1344-1352.

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Miller, D. "Psychological and Traditional Deter- minants of Structure," Administrative Science Quarterly (3^ :4), December 1986, pp. 539-560.

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About the Authors Gholamreza Torkzadeh is professor of informa- tion systems and operations management at The University of Toledo. He holds a Ph.D. in opera- tions research from The University of Lancaster,

England, and is a member of the O.R. Society of Great Britain, TIMS, DSI, ACM, and SIM. He has been involved in research programs pertain- ing to management of the information systems function, distribution, resource allocation, and mathematical modelling and has published in Management Science, Communications of the ACM, MIS Quarterly, Journal of Qperational Research, Qmega, Decision Sciences, Long Range Planning, Information & Management, Journal of Management Information Systems, and others.

Weidong Xia is lecturer and deputy director of the Division of Information Systems and Manage- ment Science at Beijing University of Aeronautics and Astronautics. He holds an M.Sc. in manage- ment science and information systems from that same university. He is currently a visiting scholar at The University of Toledo. His research has focused on mathematical modelling, information systems analysis and design, and manufactur- ing management. He has co-authored two books on computer technology and information systems analysis and design in China. His research ar- ticles have been published in Scientific Research of BUAA and Standardization and Quality. One of his current research interests is management of the information systems function.

Appendix The Instrument Development Process

To improve the content and focus of the initial questionnaire, it was first administered in five interviews with experienced telecommunications managers from manufacturing, services, and wholesale industries and two academics involved in research studies on the management of telecommunications. Their feed- back helped improve the scope and wording of items. Next, this improved questionnaire was mailed to 622 telecommunication managers, and 137 useable responses were collected. This sample was used for instrument development and data analysis.

To ensure that the items measured the organizational support for telecommunications, the construct validity of each item was examined. Kerlinger (1978) suggests two methods of construct validation: (1) correlations between total scores and item scores, and (2) factor analysis. The first approach assumes that the total score is valid; thus, the extent to which the item correlates with the total score is indicative of construct validity for the item. In this study each item score was subtracted from the total score in order to avoid a spurious part-whole correlation; the result is a corrected item total, which was then cor- related with the item score. Factor analysis was also used to identify the underlying factors or components of support construct. This enabled us to identify factorially pure items that would facilitate the testing of more specific hypotheses.

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Teiecommunications Steering Committee

A measure of criterion-related validity (Kerlinger, 1978) was also examined to identify items that were not closely related to the organizational support construct. A global item measuring perceived overall support was assumed to be a valid measure and was used as a criterion scale. This criterion scale was: "Overall, how would you rate organizational support for the development of telecommunications in your organization?" To the extent that each item was correlated with this criterion, the scale provided a measure of criterion-related validity.

Using the sample of 137 responses, the eight-item scale was examined for reliability and construct validity. Bartlett's test of sphericity had a chi-square value of 774.84 and a significance level of .0000, suggesting that the intercorrelation matrix contains enough common variance to make factor analysis worth pursu- ing. The data were examined using principal components analysis as the extraction technique and varimax as a method of rotation. Two factors with eigen values greater than 1 emerged and explained 65.0 per- cent of the variance. The loadings of the eight measures on each factor (for factor loading greater than .30) is shown in Table A1. Two items had multiple loadings.

Except for items 3, 4, and 6, each item had a corrected item total correlation above .66 (a measure of internal consistency) and a correlation with the criterion measure above .44 (see Table A2). These three items did not specifically relate to top management activities or strategic role of telecommunica- tions in organizations and were therefore omitted. The cutoffs for the remaining five items were con- sidered high enough to ensure that the items retained were adequate measures of Factor 1.

This five-item scale for measuring organizational support for telecommunications had a reliability of .89 and a criterion-related validity of .70. With a minimum standard of .80 suggested for basic research, this scale's reliability is adequate for measuring organizational support for telecommunications. Factor analysis of this scale resulted in one factor with an eigen value of 3.5 that explained 69 percent of the variance. Item descriptions, corrected item total correlations, correlations with criterion, and factor loadings are provided in Table A3.

Tabie A 1 . Rotated Factor iVIatrix of Recognition/Support items

item Description

1. Top management understands the importance of telecommunications.

2. Top management supports the development of telecommunications.

3. Telecommunications is used as a supporting function to accomplish company goals and objectives.

4. Telecommunications can help solve operating problems.

5. Telecommunications capabilities are considered in the organization's strategic planning process.

6. Telecommunications is vital to the organization.

7. Telecommunications has been recognized as an important tool in strategic planning.

8. Budget allocation toward telecommunications has been favorably considered by management.

Factor 1 Factor 2

.86507

.89350

.57291 .31944

.78400

.75729

.79992

.73648 .34310

.79256

Note: Variance explained: Factor 1 = 50.6%; Factor 2 = 14.3%.

198 MIS Quarterly/June 1992

Teiecommunications Steering Committee

Tabie A2. Reiiability and Criterion-Reiated Vaiidity of Organizational Support IMeasures

item Description

1. Top management understands the importance of telecommunications.

2. Top management supports the development of telecommunications.

3. Telecommunications is used as a supporting function to accomplish company goals and objectives.

4. Telecommunications can help solve operating problems.

5. Telecommunications capabilities are considered in the organization's strategic planning process.

6. Telecommunications is vital to the organization.

7. Telecommunications has been recognized as an important tool in strategic planning.

8. Budget allocation toward telecommunications has been favorably considered by management.

Corrected Item-Total Correlation

.70

.77

.54

.36

.66

.31

.73

.70

Correiation With

Criterion

.63

.76

.30

.20

.45

.20

.44

.65

Tabie A3. iVIeasures of Organizationai Support

1.

2.

3.

4.

5.

item Description

Top management understands the importance of telecommunications.

Top management supports the development of telecommunications.

Telecommunications capabilities are considered in the organization's strategic planning process.

Telecommunications has been recognized as an important tool in strategic planning.

Budget allocation toward telecommunications has been favorably considered by management.

Corrected item-Total Correiation

.74

.80

.68

.72

.70

Correiation With

Criterion

.63*

.76*

.45*

.44*

.65*

Factor Loading

.89

.84

.82

.81

.80

Significant at p < .001.

MIS Quarterly/June 1992 199