PUBLISHED Information Systems

A study on the interrelations of decision-making factors of information system (IS) upgrades for sustainable business using interpretive structural modeling and MICMAC analysis

Kim, D., Kim, Y., Lee, N.
Sustainability (2018) Vol. 10 (3) : 872
Impact Factor 3.9
Quartile Q2
Citations 18
DOI: 10.3390/su10030872

Abstract

An information system (IS) upgrade is an essential way to enhance the competitiveness of an organization. Specifically, the decision making processes surrounding IS upgrades is one of the most important parts of an organization's competitiveness in regard to business sustainability.

Research Overview

This study analyzes the complex interrelationships among factors influencing information system (IS) upgrade decisions using Interpretive Structural Modeling (ISM) and MICMAC analysis, providing insights for sustainable business competitiveness.

Research Background

IS Upgrade Importance

  • Critical for maintaining competitiveness
  • Significant resource commitment required
  • High risk and uncertainty
  • Long-term business sustainability impact

Decision Complexity

  • Multiple interdependent factors
  • Technical and organizational considerations
  • Financial and strategic implications
  • Stakeholder alignment challenges

Methodology

ISM (Interpretive Structural Modeling)

  • Purpose: Map hierarchical relationships among factors
  • Approach: Expert-based structural analysis
  • Output: Multi-level factor hierarchy

MICMAC Analysis

  • Classification: Factor categorization by influence
  • Dimensions: Driving power and dependence
  • Purpose: Strategic priority identification

Research Process

  1. Literature review and factor identification
  2. Expert panel formation
  3. Structural self-interaction matrix
  4. Reachability matrix development
  5. Level partitioning
  6. ISM model construction
  7. MICMAC classification

Key Decision Factors Identified

Technical Factors

  • System compatibility
  • Technology maturity
  • Integration capability
  • Performance requirements
  • Security considerations

Organizational Factors

  • Strategic alignment
  • Organizational readiness
  • Change management capability
  • User acceptance
  • Training requirements

Financial Factors

  • Total cost of ownership
  • Return on investment
  • Budget availability
  • Cost-benefit analysis
  • Financial risk assessment

External Factors

  • Vendor support
  • Industry standards
  • Regulatory compliance
  • Market trends
  • Competitive pressure

ISM Hierarchical Structure

Level 1 (Top): Dependent Variables

  • IS upgrade decision
  • Business competitiveness
  • Sustainability outcomes

Level 2: Intermediate Variables

  • User satisfaction
  • System performance
  • Process efficiency

Level 3: Driving Variables

  • Strategic alignment
  • Technology capability
  • Financial viability

Level 4 (Bottom): Foundation Variables

  • Management support
  • Organizational culture
  • Resource availability

MICMAC Classification Results

Driver Variables (High Driving, Low Dependence)

  • Top management support
  • Strategic business alignment
  • Organizational culture
  • Resource commitment

Implications: These require primary attention as they influence many other factors

Linkage Variables (High Driving, High Dependence)

  • Technology compatibility
  • Change management
  • User training
  • Integration planning

Implications: These are critical but also influenced by other factors; require careful management

Dependent Variables (Low Driving, High Dependence)

  • System performance
  • User satisfaction
  • Business outcomes

Implications: These are outcomes rather than drivers; influenced by other factors

Autonomous Variables (Low Driving, Low Dependence)

  • Minimal direct influence
  • Peripheral considerations

Implications: Low priority in decision-making

Strategic Implications

For Decision Makers

Priority Actions

  1. Secure top management commitment
  2. Ensure strategic alignment
  3. Build organizational readiness
  4. Allocate adequate resources

Sequential Approach

  • Address driver variables first
  • Manage linkage variables carefully
  • Monitor dependent variables
  • De-emphasize autonomous factors

For Organizations

Success Factors

  • Strong leadership support
  • Clear strategic rationale
  • Comprehensive change management
  • Adequate resource allocation
  • Stakeholder engagement

Risk Mitigation

  • Phased implementation
  • Pilot testing
  • Continuous monitoring
  • Flexibility and adaptation

Sustainability Contributions

Economic Sustainability

  • Long-term cost efficiency
  • Competitive advantage maintenance
  • Revenue optimization
  • Resource utilization

Organizational Sustainability

  • Capability development
  • Knowledge retention
  • Process improvement
  • Innovation enablement

Technical Sustainability

  • System longevity
  • Adaptability
  • Scalability
  • Maintainability

Contributions

Theoretical

  • ISM application to IS decisions
  • Factor relationship mapping
  • Decision framework development

Methodological

  • Systematic analysis approach
  • Expert knowledge utilization
  • Hierarchical structure revelation

Practical

  • Decision support framework
  • Priority identification
  • Risk management guidance

Limitations

  • Expert judgment dependency
  • Static analysis
  • Context specificity
  • Binary relationship assumptions

Future Research Directions

  • Quantitative validation studies
  • Dynamic modeling approaches
  • Industry-specific analyses
  • Longitudinal impact studies
  • Cross-cultural comparisons

Publication Details

Journal: Sustainability
Impact Factor: 3.9 (Q2)
Citations: 18
DOI: 10.3390/su10030872
Open Access: Yes