Path analysis of IT application maturity

Authors:
Jianping Peng;Guoying Zhang
Affiliations:
Business School, Sun Yat-sen University, Guangzhou, 510275, China.;Dillard College of Business Administration, Midwestern State University, Wichita Falls, 76308, Texas, USA
Venue:
International Journal of Networking and Virtual Organisations
Year:
2012

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Abstract

This paper studies effects of two management capabilities on IT application maturity. Data were collected from 123 companies in China. A basic regression finds that both capabilities have significant positive effects on IT application maturity as well as on dimension variables of IT application maturity. Further, a path analysis model is established to describe the intertwining relationship among two management capabilities and IT application maturity. Three hypotheses are accepted through model estimation. It is found that process management capability has a stronger positive direct effect on IT application than management institutional capability. Furthermore, process management capability has a positive indirect effect on IT application maturity through management institutional capability. The results provide companies with a practical insight: improvement through process management capability should be emphasised first, and it will lead to greater improvement of IT application maturity.