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Águila, A.R.; Bruque, S.; Padilla, A. (2003): �Intangible Determinants in the Introduction and Development of Information Technology: Mediterranean Evidence� in Tan, F.B. (ed.): Advanced Topics in Global Information Management. Idea Group Publishing. London.

INTANGIBLE DETERMINANTS IN THE INTRODUCTION AND DEVELOPMENT OF INFORMATION TECHNOLOGY: MEDITERRANEAN EVIDENCE

Ana R. del Águila Obra

University of Málaga, Spain

Sebastián Bruque Cámara

University of Jaén, Spain

Antonio Padilla Meléndez

University of Málaga, Spain

ABSTRACT

In a global and highly competitive context the human-machine interaction re-emerges

as an important topic of research among IS academics and practitioners. In this work, we

propose an empirical analysis applied to the Pharmaceutical Distribution Industry in Spain

with the aim of detecting the influence that some human and managerial intangibles have on

the level of effective implementation of IT in organizations. We finally present some

theoretical and managerial implications that can be applied not only for the Spanish case, but

also for the European Union and for a global environment.

INTRODUCTION

From the start of the computer age (Kaufman, 1966) it has been suggested that the

development and introduction of information technology (IT) has positive effects on business

(McLean and Soden, 1977; McFarlan, 1984; Porter and Millar, 1985; Parsons, 1983; Cash

and Konsynski, 1986). Information Technology could have a strategic effect, either affecting

the conditions in which products are made available or manufactured, or affecting the actual

market structure, the production economies and the level of internationalisation of the firm. IT

2

could also modify each of Porter�s competitive strategies (1980), that is to say, cost

leadership, differentiation or specialization in a market niche.

The revolutionary effect of information technology on economic and social structures

has meant that an important number of researchers have tried to clarify the circumstances in

which information technology acts as a driving force in business performance (Amit and Zott,

2001), in interorganizational relationships (Shapiro and Varian, 1999) or in organizational

change (e.g. Kling and Lamb, 2000; Orlikowski and Iacono, 2000, amongst others). Given the

relevance of the technological factor in organizations, in this paper we consider if technology

needs certain human or managerial conditions for its successful introduction and

development. This question will be looked at in the first part of the paper, and in the second

part we will go over theoretical background which links human and managerial intangibles to

the introduction and development of new technology, this will allow us to formalize

subsequent hypotheses. Later we will develop some analyses that will prove the validity of

the theoretical premises. Finally we will discuss the results taking into account the

implications for IT global management.

BACKGROUND AND HYPOTHESES

Over the last few years, the question of interaction between human and managerial

factors and information technology has been of interest to an increasing number of

researchers. In some cases, the relationships linking certain human and managerial

characteristics to the overall performance of the company have been studied (Neo, 1988;

Clemons and Row, 1991; Hagmann and McCahon, 1993; Ross, Beath and Goodhue, 1996;

Hitt and Brynjolfsson, 1995; Powell and Dent-Micallef, 1997; Bharadwaj, 2000; Byrd and

Douglas, 2001; Lee, 2001; Duhan, Levy and Powell, 2001), as have the processes in which

information and communication technology is involved (Mukhopadhyay, Rajiv and

Srinivasan, 1997; Lee and Menon, 2000; McAffee, 2001). In other cases, the problems of

3

management of the staff working in the field of Information Technology and Systems have

been analysed (Woodruff, 1980; Cheney, Hale and Kasper, 1990; Gupta, Guimaraes and

Raghunathan, 1992; Yellen, Winniford and Sanford, 1995; Martinsons and Westwood, 1997;

Martinsons and Cheung, 2001), especially when Business Process Re-engineering, BPR,

outsourcing and downsizing occur and when final users have access to key activities in IT

areas, for example, the substitution of a system organized in central servers by a decentralized

system using personal equipment (Martinsons and Cheung, 2001).

Surprisingly, little attention has been paid to the relationship existing between the

presence of certain human and managerial intangibles and the actual introduction of computer

and communication technology (Hassan and Ditsa, 1999). However, studies have been made

on the combined positive effect of intangible resources together with IT and their ability to

improve the company�s competitive performance. This subject has been dealt with using

primarily the Resource Based View of the Firm (Penrose, 1959; Wernerfelt, 1984; Barney,

1995). Several resources which complement IT have been identified: Neo (1988) identified 10

complementary factors, including the existence of fluid communication between technical and

managerial staff, coordination between the company�s strategic planning and IT, and previous

experience in technological development. Kettinger et al., (1994) identified as being key

factors the commitment made by high management in the introduction of IT and the existence

of a strong learning effect related to technological development.

Mata, Fuerst and Barney (1995) underlined the ability of managers to conceive,

develop and exploit applications based on IT. Ross, Beath and Goodhue, (1996) highlighted

three assets which promote technological efficiency: the first related to the human dimension,

the second to the design of the technological platform and the third which involves the

relationships between technical and managerial teams in the organization. Powell and Dent-

Micallef (1997) identified as key elements the absence of conflict, organizational flexibility,

4

fluid internal communication and certain managerial techniques, including the use of

interdepartmental workgroups and an effort to train in new technology. Brynjolfsson, Hitt and

Yang (2000) continue working along these lines although they use different methodology

based on econometric analyses across different industries. Table 1 shows an outline of the

resources identified. The table clusters the resources in the three group aforementioned.

Resources based on the human factor in organization are included in the first one (group A),

meanwhile in the second one are included the resources based on company management

techniques (group B). The third one (group C) includes the resources based on the technical

design of technological infrastructure.

Table 1 IDENTIFICATION OF COMPLEMENTARY IT RESOURCES AND CAPABILITIES.

A SUMMARY Complementary resource Correspondence to

A) Resources based on the human factor in organization:

• Frank and receptive organizational atmosphere • Fluid communication between the members of the

technical and managerial staff • High management leadership in the introduction

and improvement of IT systems • Few organizational conflicts • Flexible organization; ability to adapt to change • Understanding of the nature of the business on the

part of technical staff

Human factors by Keen (1993)

IT promoting factors by Neo (1988) Managerial skills related to IT by Mata, Fuerst and Barney

(1995) Human and relational assets by Ross, Beath and Goodhue,

(1996) Human resources which complement IT by Powell y Dent-

Micallef (1997) Human and organizational aspects by Benjamin y

Lenvinson (1993)

B) Resources based on company management techniques

(managerial resources) • Organization in workgroups • Training in the use of information technology • Joint planning of business strategy and IT • Others: leverage in relationships with suppliers,

process re-engineering, explicit benchmarking policies, etc.

Complementary business resources by Powell y Dent-

Micallef (1997) Groupwork skills by Mata, Fuerts and Barney (1995) Human assets by Ross, Beath and Goodhue, (1996)

Technological assets by Ross, Beath and Goodhue, (1996) IT promoting factors by Neo (1988)

Learning effect related to IT by Kettinger et al. (1994) Organizational factors by Brynjolfsson, Hitt and Yang

(2000)

C) Resources based on the technical design of technological infrastructure: • Unequivocal architectural design of IT • Establishment of standards for the use and

management of data in the organization

Technological assets by Ross, Beath and Goodhue, (1996)

Source: The authors.

Using the theoretical analyses, our intention is to verify if the intangibles identified in

the literature as complementary to the competitive effect of IT are in fact associated with a

5

greater and more effective presence of this technology. This proposal is structured on the

following hypotheses (see Figure 1), in which we have differentiated between human nature

factors and managerial factors.

Hypothesis H1: A stronger presence of complementary intangibles of a human nature leads

to a higher level of IT introduction and development.

Hypothesis H2: A stronger presence of complementary managerial intangibles leads to a

stronger level of IT introduction and development.

Figure 1. Hypothesis

RESEARCH METHODOLOGY

To make our analyses we will carry out a study of one industry, based on the

pharmaceutical distribution industry. This industry was chosen because of the advanced

technological development of this type of organizations (Martínez, 1996), in which we can

identify a considerable amount of computer, robotic and telecommunication technology.

Moreover, this sector was one of the pioneers in the introduction of info-communications in

the organization, the computerization and automation of internal processes going back to the

early 70�s (Malo, 1994).

Presence of complementaryintangibles of a human

nature

Level of IT introduction anddevelopment

Presence of complementarymanagerial intangibles

H1

H2

6

The Spanish pharmaceutical distribution industry is made up of 77 organizations

(Martínez, 1996) that, in 1998, had a global turnover of more than 6,000 million Euro

(Farmaindustria, 1999). The main function of these organizations is to manage the complex

flow of information necessary to acquire, classify, store and dispense more than 20,000

references of highly specialized products.

The geographical area analysed covered 10 provinces in southern and central Spain �

the regions of Andalucía and Murcia, and the province of Ciudad Real. A total of 16

pharmaceutical distribution companies carry out their activity in the area, including, in the

year 2000, four of the five largest organizations if we take into account the national

classification (Fomento de la Producción, 2000). These companies deal with a population of

8,834,000 inhabitants, 22% of the Spanish population. In this area, the final pharmaceutical

consumption in 1998 was 1,384 million Euro, which represents 22.4% of the Spanish

pharmaceutical consumption, according to data published by the Ministry of Health. No

significant differences can be seen in the main characteristics of this industry in Spain and in

the geographical area covered in this analysis: medium size, proportion of companies with co-

operative capital, number of inhabitants per store and applicable legal framework (Martínez,

1996, Bruque, 2001).

The size of the population � 16 companies-, together with our efforts to limit sampling

errors, supposes a certain guarantee for the study which involves intangible factors related to

human behaviour (Rouse and Deallenbach, 1999). We will basically use primary information

sources with the intention of measuring the variables that make up the empirical framework.

We consider two types of variables: human and managerial variables on the one hand, and

technological variables on the other.

Human and managerial variables

7

To detect and measure internal intangible variables, we must use a process based on

the organization as an immediate analysis element (Rouse and Daellenbach, 1999). After

contacting a manager of each company by telephone, we developed a procedure for gathering

information using interviews at each of their head offices.

. Each of these companies carried out pharmaceutical distribution in 1999 in the 10 provinces

analysed. The people interviewed in the organization came from three different levels: high

management, information technology management and workers from the area of operations.

Based on the analysis of literature and preliminary research, in which managers from three

organizations took part, we drew up a different questionnaire for each level. These

questionnaires had a maximum of 45 items using Likert type scales with a width of 5 and

differential semantic scales. The questionnaires were tested with three managers and

employees before massive data gathering. Technological managers and workers from the area

of operations answered less questions, 33 and 10 respectively. The questionnaire included

questions designed to identify the level at which intangible resources complementary to

technology appeared, as well as the intensity with which each company used IT. The

questionnaire was completed after an initial interview phase with open ended questions,

designed to serve as an introduction to the next phase and to obtain qualitative information.

Information was obtained from December 1999 to October 2000 from a total of 36

interviews carried out in the 16 organizations which made up the population. On 16 occasions

interviews were held with an executive director, on 14 occasions with a information

technology director and on 6 occasions with shopfloor workers. We visited the organization

for at least one complete working day. The average response made by the three groups to each

item gave us an estimation of the intangible resources in each company. Measures were taken

to avoid making systematic error not directly concerned with the sample, and to eliminate

sampling errors by taking into account the whole population. To be more specific, two

8

fundamental control instruments were used: (1) the use of multiple informants in each

company, and (2) the use of instruments that measure the reliability and validity with which

the different questions measure analysis concepts.

As an internal reliability measure (Sekaran, 2000) we calculated at 0.48 the average

correlation level (Spearman�s mean correlation coefficient) between the responses made by

each participant to one particular item. The standard error between responses given by high

level directors and the rest of the informants had a value of 0.62 points. These results are

inferior to others obtained using similar methodology; Powell and Dent-Micallef (1997) and

Lee and Miller (1999) obtained correlations of 0.54 and 0.61. Nevertheless, we consider the

relationship to be acceptable if we take into account that the previous figures correspond to

very numerous populations in which external factors tend to be less significant. We went on

to calculate the alpha indexes (Cronbach, 1951) in order to analyze the integrity of the

multidimensional scales used in the questionnaire. Although this index has no minimum

value, some authors set the value at 0.35 and so ensure an acceptable value for each

dimension (Van de Ven and Ferry, 1979; Powell and Dent Micallef, 1997). In other cases a

value of 0.70 is referred to (Hair et al. 1999). In our study we reach an average value of 0.80,

thereby more than covering our expectations related to the reliability of the scales. We have

also contemplated some tests of predictive validity and content validity, shown in the high

levels of negative correlation between opposite variables, such as those which link

organizational conflict with internal communication (r = -0.73), confidence (r = -0.66) and

cognitive capacity of technical staff (r = -0.54). We have also tried to give scales content

validity based on a previous revision of specialized literature.

Based on the theoretical revision described above, a total of 18 intangible resources

have been analysed � Table 2 � which, together with IT would have a positive and

complementary effect. These factors were grouped in three blocks of resources � Table 3 -,

9

which refer to the different dimensions in which human, managerial or technological

suitability can arise. In our analysis, the human factor refers to four dimensions (see Table 3):

(1) fluid internal communication, confidence building, encouragement in training skills and

sharing of knowledge for technical staff (COMMUNIC); (2) low level of organizational

conflict (CONFLICT); (3) creative capacity and continuous training on the part of technical

staff (TECNICH) and (4) direction towards change and the adoption of new technology by

organization members (ORGCHANGE). The managerial factor includes the following

resources (see Table 3): (1) support from directors for the introduction and development of

new technology (SUPPORT); (2) regular use of interdepartmental teams to resolve key

problems (TEAMS) and (3) efforts to obtain organizational flexibility (FLEXIB). Lastly (see

Table 3), the suitable technology factor (TECHNO) refers to the reliability and efficiency of

technological infrastructure, meaning, therefore, that high scoring indicates that managerial

and introduction costs are lower than the sector average, a situation that could be due to a

correct adaptation of technology to a particular culture and organizational structure ( Ross,

Beath and Goodhue, 1996). Table 3 shows an outline of the resources used.

TABLE 2 Resources which would complement information technology

1. There is fluid communication in our organization (COMMUNIC1) 2. The staff in our company communicate with all other workers and not just those belonging to the same department or section (COMMUNIC2) 3. There is frequent consultation between computer or communications staff and directors about technical or managerial decisions (CONSULT) 4. On the whole, computer and communications staff carry out their duties as negotiators, instructors and consultants correctly (COMPUTPERS) 5. There are few conflicts in our organization (CONFLICT1) 6. There are few conflicts between the company�s head office and territorial distribution centres/stores (CONFLICT2)7. On the whole, our computer staff are highly creative (CREATIV) 8. Our computer and communications staff are used to continuous training (LEARN) 9. Our employees are open minded and have the utmost confidence in their colleagues (CONFIDEN) 10. Generally, our staff accept change quickly (CHANGE) 11. Our staff have accepted the use of new IT with enthusiasm (PERMEAB) 12. New technology projects have the complete support of the company directors (SUPPORTDIR) 13. There is very little bureaucracy in the company (FLEXIB) 14. Company management has been at the front of the renewal of IT (LEADTECH) 15. We frequently call on interdepartmental teams to solve key problems (TEAMS) 16. IT training is a priority in our company (TRAIN) 17. Our company has better IT introduction and development costs than our competitors (ITCOSTS) 18. On the whole, the availability of computer and communications systems, their response time and management

10

costs are better than those presented by our competitors (QUALSYST) Source: The authors.

11

TABLE 3

Groups of resources analysed Factor Dimension Made up ofª Overall Result

(St. Dev.) Frank and fluid communication between the different members and levels of the organization (COMMUNIC)

COMMUNIC1, COMMUNIC2, CONSULT, COMPUTERS, CONFIDEN. (C.ALPHA= 0�81)

4�01 (0�49)

Degree of organizational conflict (CONFLICT)

CONFLICT1 CONFLICT2 (C.ALPHA = 0�85)

1�99 (0�66)

Quality of technical staff (TÉCH) CREATIV, LEARN.

(C.ALPHA = 0�76) 3�97

(0�59)

HUMAN FACTOR

Direction towards change and technological innovation (ORGCHANGE)

CHANGE, PERMEAB (C.ALPHA = 0�65)

3�78 (0�40)

Managerial support for IT (SUPPORT)

SUPPORTDIR, LEADTECH, TRAIN. (C.ALPHA = 0�86)

4�19 (0�52)

Use of interdepartmental teams to resolve key problems

TEAMS

3�70 (0�81)

MANAGERIAL FACTOR

Little bureaucracy FLEXIB 3�27 (0�89)

TECHNOLOGICAL SUITABILITY FACTOR

Technological efficiency and availability, better introduction and managerial costs than those obtained by competitors (TECHNO)

QUALSYST, ITCOSTS (C.ALPHA = 0�90)

3�13 (0�78)

Average response 3�55 a In those factors made up of more than one item, we have included the Cronbach Alpha reliability analysis (C.ALPHA).

Technological variables

We have identified a total of 17 types of computer, robotic or telecommunications

technology (Scott Morton, 1991; Madnick, 1991) that are used in the pharmaceutical

distribution industry. This type of technology was evaluated by including the respective items

with Likert type scales 0-5 in the questionnaire given to the members of the organizations that

took part in the study and participated in the previously described interviews. In this case,

value 0 indicated that the organization was not interested in introducing technology, value 1

indicated that the organization was interested in its development, but had not yet got under

way and value 5 indicated that the technology is fully implemented. Table 4 shows the

average descriptive statistics for each of the technological variables.

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TABLE 4 Information technology in the pharmaceutical distribution industry. Level of implementation.

TYPE OF TECHNOLOGY Average level of usage. (Standard Deviation)a

One-way communication by modem between pharmacy offices and the company computer systems (TI1)

4�68 (0�57)

Two-way communication by modem between pharmacy offices and the company computer systems (TI2)

4�22 (1�27)

Electronic trading with buying centres EDI (TI3) 2�81 (1�74)

Electronic trading with buying centres through Internet (TI4) 1�56 (1�71)

Electronic trading with pharmaceutical laboratories -EDI- (TI5) 2�20 (1�66)

Electronic trading with pharmaceutical laboratories through Internet (TI6) 1�50 (1�37)

Own local network which connects the different computer systems with company offices (TI7)

4�51 (0�75)

E-mail and document transfer between all company computers (TI8) 3�65 (1�66)

Bar code reading system to classify articles in the dispensing department (TI9) 3�05 (1�75)

Weight control systems to return erroneous orders (TI10) 0�83 (1�35)

Automated dispensing systems for articles with different turnover (TI11) 2�92 (1�96)

Pallet loading system and transfer of merchandise by remote control (TI12) 1�27 (1�46)

Office management software specifically designed for the pharmacy for its own use (TI13) 3�14 (1�63)

Own web site (TI14) 2�93 (2�13)

Intranet with restricted use for customers and organization members(TI15) 2�37 (2�02)

Professional and technical information through the Web (TI16) 2�05 (1�79)

Electronic commercial web site for the sale of non-medical products to the general public (TI17)

0�39 (0�83)

a 0 indicates that the company is not interested in the introduction of technology; 1 means that implementation has not yet begun and 5 indicates that its introduction in the company is highly advanced.

Note that in this study the degree of introduction of IT is measured using perceptual

variables arising from the opinions given by company members. In this way we deal with the

problem of efficiency in the conversion of this type of technology from a competitive point of

view (Lee, 2001), given that an investment in technology does not always guarantee its

usefulness. That is to say, IT that is not put into use is of no value to the company. For this

reason, measuring the investment made in IT is not enough, since it would be impossible to

see if the investment is transformed in real hardware and software functions or if these

functions are in fact used at all. In short, perceptual measurements (Spanos and Lioukas,

13

2001) can eliminate this problem and, together with the diversity of informants, can ensure a

correct measurement of the effective introduction of IT in organizations.

In order to facilitate subsequent calculations, we have drawn up two index summaries

of IT implementation. The first, which we will call the General Technological Index

(TECHIND1), refers to the overall use of technology in the company, and it corresponds to

the average value of the 17 technological items. The second indicator, called Specific

Technological Index (TECHIND2), is more selective, only taking into account more

advanced technology which is, therefore, less widely used. This technology corresponds to:

(1) internal communication systems and endogenous networks; (2) robotic and stores

management technology and (3) Internet/Intranet technology.

ANALYSES AND RESULTS

The method chosen to materialize these analyses consists in the determination of

Spearman�s correlation coefficients, whose results appear in Table 5. The choice of this

statistical instrument is due to the fact that it is not a parametric method, which is useful in

cases in which one of the variables is not of a normal type (maximum Kolmogorov Smirnov

test values: Z = 0.045, p = 0.997). Table 5 shows not only the intangible dimensions and IT,

but also the General Technological Index and Specific Technological Index variables. The

first represents the overall level of use of technology and it corresponds to the average

presence of IT included in the model. The second is also an average parameter, but in its

calculation only the most advanced and, therefore somewhat scarce, technology variables

have been included. With regard to the results, we must note that Spearman�s correlation

coefficient can be affected by spurious relationships between variables, something which we

will take into account when we justify certain associative relationships. In Table 5 we have

underlined associations over 0.35, a threshold that has also been used in studies in this field

14

(Powell and Dent-Micallef, 1997; Miller and Shamsie, 1996), although other authors demand

an inferior value, as is the case of Lee and Miller (1999) who set a value of 0.20.

If we focus on the first column we can observe that frank and fluid interorganizational

communication (COMMUNIC) is not correlated to the General Technological Index

(TECHIND1). There are, therefore, no reasons to suggest that enterprises that allow a free and

fluid exchange of information between their members necessarily achieve greater

technological development. On the other hand, there is no significant level of relevant

association between COMMUNIC variables and the Specific Technological Index that

indicates the position held by the company in the introduction of advanced technology

(TECHIND2).

If each type of IT is individually analysed, we can conclude that only relevant

connections can be observed between the COMMUNIC variable and IT8, IT11, IT13 and,

especially, with IT16 technology. These instruments correspond to: (1) e-mail and document

transfer between the company�s computers (IT8); (2) automated dispensing systems for

articles with different turnover (IT11); (3) pharmaceutical management programmes designed

exclusively for the company (IT13) and (4) professional and technical information through

the Web (IT16).

Organizational conflict (CONFLICT) covers a wide range of negative correlations

with diverse technological factors. We point out that there is a considerable negative

correlation with the two global indices of technological introduction � especially with the

specific index TECHIND2. That is to say, the organizations in which there is less

organizational consensus show a lower index of real IT use. This association could be

justified by the fact that companies tend to put off new investments when there is any internal

conflict. We could also say that conflict could arise as a result of the low level of technology

introduced or the loss of competitive position in the market. On other occasions conflict can

15

arise because projects to introduce new IT are being undertaken (Mirvis, Sales and Hackett,

1991).

Having analysed the technological instruments individually, the CONFLICT variable

shows considerable correlation coefficients which are always negative with the following

technological instruments: (1) own local networks (IT7); (2) e-mail and document transfer

between company teams (IT8); (3) automated article dispensing systems (IT11) and (4)

managerial software for the pharmacy office and technology based on Internet (IT13, IT14,

IT15 and IT16). It is surprising to note that these last types of technology are more sensitive

to situations in which there is a low level of consensus, perhaps because this factor does not

permit the implantation of instruments which have an uncertain impact on the result, are high

risky and require a very large investment in human capital.

The creative conditions and training guidance put forward by technical staff

(TECHNIC) show a modest level of association with the Global Technological Index

(TECHIND1), while there is practically no relationship with the Specific Technological Index

(TECHIND2). Four cases of correlated variables appear only if we analyse different types of

technology individually. We are referring to the following instruments: (1) own local network

(IT7); (2) e-mail and document transfer (IT8); (3) automated dispensing systems (IT11); (4)

own web site (IT14) and (5) information and added value through the Web (IT16). They are

instruments in which staff can play a key role, particularly in aspects related to adaptation and

subsequent development after their initial introduction.

Paradoxically, a greater direction towards change (ORGCHANGE) is not associated

with any global technological index. There is only a very slight negative degree of association

with the use of weight control systems to return erroneous orders (IT10) and with pallet

loading systems and the transfer of merchandise by remote control (IT12), facts from which

16

we can draw definitive conclusions given the scarce global use of these technological

instruments � a maximum of three organizations use them effectively.

Support for IT by directors (SUPPORT) does however show a high level of correlation

with the intensive use of IT. As can be seen in the sixth column of Table 5, the efforts made

by company management in finance, training and leadership in technological change are

related to superior effective use of technology. Moreover, results indicate that when there is

solid company management support for IT, it is chanelled homogeneously towards alternative

technology, regardless of whether it is up to date or not. Proof of this is that the correlation of

the variable with both the specific and general technological indicators is practically identical.

If we look at the different types of technology separately, there are superior correlation

coefficients for IT2 � two-way communication with customers; IT4 � electronic trading with

buying centres through Internet; IT7 � local network that connects company computers and

offices; IT8 � e-mail and document transfer; IT9 � bar-code reading systems; IT11 �

automated dispensing systems; IT13 - managerial software for the pharmacy office and IT14,

IT15 and IT16 � Internet related technology. In this group of instruments, the ones that

dominate are those that are related to the creation and development of both internal and

external communication networks, in which support from the management could have played

a significant role, given that it is in this group where the greatest advances in the last decade

have been made.

17

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18

If we study the technology that shows no correlation with management support,

we can also obtain some interesting conclusions. This way we will identify those which,

in the opinion of the company management, are not sufficiently attractive. The ones

which appear amongst them, apart from some EDI instruments, are: weight control

systems to return erroneous orders, merchandise control by remote control and, lastly,

the use of the Web as a Business to Consumer platform B2C or electronic commerce

models. Diverse types of problems have arisen with the implantation of this group of

techniques. For example, the application of B2C models in the pharmaceutical

distribution industry has run into considerable resistance by members and public

administration, while the conflict of interests between production companies and

distribution companies has paralysed numerous projects to implant EDI and weight

control systems. The control technique using remote control has not been well received,

perhaps because it is an instrument whose use is restricted to big companies that deal

with large quantities of merchandise in plants covering a considerable area.

One of the strongest interactions is related to the use of interdepartmental teams

to resolve key problems (TEAMS). There is a strong association with both

technological equipment indices (TECHIND1 and TECHIND2), and with most of the

types of technology listed in Table 5. We can confirm that TEAMS is related to all the

variables except those which refer to: (1) one-way communication (IT1); (2) EDI

systems (IT3, IT5 and IT6); (3) weight control systems to return erroneous orders

(IT10); (4) pallet loading systems and transfer of merchandise by remote control (IT12)

and (5) electronic commerce with final customers (IT17). That is to say, the relationship

is weak in those types of technology which have had problems at the implantation stage

or have become obsolete � as is the case of one-way communication with customers

(IT1). For the rest of the variables we can observe important association levels.

19

The initial interpretation of the results could lead us to conclude that the use of

interdepartmental workgroups favours the use of technology in the company, and

alternatively, that IT could favour the implantation and development of workgroups, for

example, through groupware technology. Experience shows us that both effects can

currently occur. In fact, process re-engineering based on IT needs frequent structured

contact between employees and technical staff or between employees and managerial

staff (Davenport, 1999; Davenport and Prusack, 1998; Swan et al., 1999; Ranganathan

and Dhaliwal, 2001). Nevertheless, we can�t underestimate the effect that can be

produced by other variables that determine the use of interdepartmental teams,

particularly the size factor.

The size of the company is related to the use of interdepartmental teams �

correlation coefficient = 0.67; it�s of no surprise then that the size of the company be

what, to some extent, determines interdepartmental collaboration in the shape of teams

and, at the same time, the degree of implantation and development of information

technology. This hypothesis is confirmed by the fact that the partial correlation

TEAMS-TECHIND1 controlled by size offers a result of 0.63, slightly lower than the

original coefficient (0.78).

Lastly, from the analysis of the last column of Table 5, we can see that there is

an important association relationship between the TECHNOLOG variable and the

degree of implantation and development of the IT most used in the pharmaceutical

distribution industry. This variable refers to the degree of suitability of the IT for the

particular culture and structure of the company, measured in terms of the advantages

gained by its use compared to the measurement obtained by competitors. As the use of

IT in the company increases, especially the most advanced types (as is the case of IT8,

IT11, IT13, IT15), this variable shows better results. This result could imply the

20

existence of stronger complementary effects with other resources in the companies with

a high technological endowment, which could indicate the presence of more

consolidated experience and/or learning effects in this type of organizations.

IMPLICATIONS AND CONCLUSIONS

While the joint study of human and managerial behaviour has been a subject of

discussion for researchers in Business Management and Information Systems, there is,

however, little empirical background that analyzes the connection between

complementary IT intangibles and the effective presence of such technology. This paper

aims to throw new light on this problem, focusing mainly on the relationships which

arise in the nucleus of organizations. To this end, we have employed a mixed procedure

for the obtainment of information, in which we have used quantitative and qualitative

data from the analysis of the organizations as an immediate study factor.

From the analyses made, we have obtained diverse results that may be of use in

subsequent research and for system and information technology management in

organizations. From a research point of view, results confirm that the companies which

use more technology have lower levels of organizational conflict and their technical

staff demonstrate more cognitive, creative and relational qualities. Moreover, in this

type of organization, the managerial team has put itself at the forefront, promoting

technological change and carrying out initiatives for the implantation and development

of new computer and telecommunication instruments (Ross, Beath and Goodhue, 1996).

Results also indicate that the companies that most frequently use

interdepartmental teams to resolve key problems are, in fact, those that have achieved a

higher degree of both general and specific technological development, which could

indicate that the companies most advanced from a managerial point of view could also

be the most advanced from a technological point of view. We shouldn�t, however,

21

overlook the function that other modulating factors can exert, such as organizational

size which can be an indicator of the economical resources which the organization

counts on or has counted on to finance new technology investment.

Organizational conflict has, in our study, shown to be an obstacle in the effective

development of IT, especially in the development of the most innovative, and therefore

risky type of technology, in which more decisive support is required from all sections

of the company. Many studies have looked at the effects produced by conflict on

different business aspects (Burgeois, 1980), however, we haven�t found any precedent

that explains the relationship between the actual degree of IT implantation and levels of

conflict.

We have not discovered any relationship between variables which, according to

other studies, are the origin of certain IT effects which favour organizational results. We

are referring to the existence of frank and fluid communication, direction towards

change by the members of the organization and organizational flexibility, and a low

level of bureaucracy. Consequently, we can�t confirm that these intangibles promote the

effective use of technology, thereby leaving open the lines of research which aim to

identify the circumstances under which these factors can influence the level of use of

technological equipment.

This paper also presents certain innovation in methodology which signifies a

step forward in the development of this line of research. We have used a measurement

of technological development that is not based on quantitative investment data, but

which includes the opinions of different members of the organization on the actual

development of the implantation of technological options, thereby eliminating one of

the habitual problems in this area of research (Mahmood and Mann, 2000; Lee 2001).

22

We have also used different informants in each company to make our findings more

coherent.

Managerial implications

Regarding managerial implications, the study has revealed the importance of the

so called �soft� factors in the success of companies� technology implantation processes.

We have demonstrated that intangibles not only have an influence on the economic and

competitive success of IT, but also determine the degree of implantation of such

technology. This finding implies that technological investment does not always coincide

with the actual technological development, but is the result of a more involved process,

in which not only financial availability, but also the quality of management and

technical staff, have an influence. The people in the company who are in charge of IT

implantation projects should plan the adaptation of human and managerial capital to the

new technological environment before technological development is carried out.

In the area of global IT management, this study can be a first approach to

addressing the differences in IT introduction determinants between the Spanish case and

that of other countries. We have found that the level of directive support, the absence of

conflict, the use of interdepartmental teams and the quality of the IT staff are related to

a higher level of IT development. This conclusion does support the predictable

relationships between human or managerial resources and IT and it seems to agree with

the international patterns of IT adoption (Hassan and Ditsa, 1999). Nevertheless, there

exist in this study other results that do not confirm some likely relationships. We are

referring particularly to the null connection between organizational flexibility and IT

introduction and development and between frank and fluid communication and IT

introduction and development. We are not able to explain the ultimate reasons that are

behind the former result, although they can be a good starting point for new studies.

23

This future research could describe also the differences in this issue between the

Spanish case and other cultures different from the Mediterranean culture. Another

interesting question for future research would be the introduction of labour conditions

as determinants of IT introduction and development. A better understanding is

necessary of the relations that exist between labour stability, worker involvement and

effective IT utilization in Latin countries.

Limitations and future research

This study is not exempt from limitations which we will go on to mention.

Firstly, it is a non-longitudinal analysis, in which we have not taken into account the

dynamic nature of technological implantation processes. Nevertheless, we believe that

the long term effects do not represent a serious threat to the research, since the

magnitudes involved are of a very stable nature. Thus, the types of technology we have

analysed are a result of strategic decisions whose implantation usually requires a long

period of time, while it is also known that organizational intangibles are difficult to

mould in the short term.

The second limitation refers to the set of structural or organizational variables

that can have an influence on the use of technology in organizations. Although we have

taken some of them into account, such as size, in certain analyses, others that explain

the effective use of technological may exist. Amongst these variables, we can indicate

competitive rivalry, that favours technological contagion, or the co-operative or non-co-

operative character, a factor that may be revealing in a sector where there is a

predominance of co-operative firms.

Lastly, we have mainly used correlation analyses, which could limit our ability

to explain the results. Nevertheless, this technique has shown to be the most suitable,

given that it uses variables which, in many cases, do not fulfil the criteria required in

24

parametric analyses. Both this and previous limitations could constitute a basis for

further research that aims to clarify interactions between technology and organizational

social infrastructure.

The aforementioned limitations can be the basis for new research work.

Specifically, the analysis of differences in different industries or countries with different

level of IT utilization is therefore a line of research that remains open.

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