Toward a Better Understanding of Information Technology Organization: A Comparative Case Study1

Abstract

The role of information technology (IT) has changed from being merely a tool for processing transactions to a weapon that can affect an organization's competitive position. Because of this change, previous organizational structures for IT groups may no longer be adequate. Organizational theorists have shown that the appropriate structure is influenced by the organization's external environment and strategy. This study contributes toward a better understanding of IT organization by exploring the relationship between the organizational structure of IT groups and the effectiveness of IT support in two companies with similar IT environments. Specifically, the study uses: (1) qualitative analysis to examine IT organizational structure in two very similar companies; (2) quantitative analysis to determine which company has more effective IT support; and (3) an expert panel to identify those differences in IT organizational structure that appear to facilitate effective IT support. Several propositions from these findings are presented and discussed.