Enterprise transformation capability for the digital era - Demands for organizations and CIOs

This study explored the role of the Chief Information Officer's (CIO's) capability in the organization's capacity to change. The topic is motivated by increasingly IT-intensive business and CIOs' integral role in enterprise change. The study resulted in a model that contributes to a better understanding of this role. The capability of the CIO was operationalized as the role incumbent's Current Level of Capability (CLC), as measured by the interview-based Career Path Appreciation (CPA) assessment method. Enterprise Transformation Capability (ETC) was defined as the degree to which the organization is able to absorb environmental complexity through deliberate changes in its operations, structure, and/or culture. It was operationalized as a multi-dimensional, multi-level construct encompassing three levels and six dimensions: complexity of work, strategic capability, change management, enterprise IT, human resources management, and culture and values. As the ETC construct is based on the same theoretical underpinnings of Levels of Work as the CPA method, the scales for the two concepts are commensurable, enabling meaningful comparison of individual and social level capabilities. An initial survey instrument of 30 forced choice questions on a three-level scale was constructed to quantify the ETC. The survey results of six case organizations were first subjected to item reduction and correlation analysis between dimensional constructs. The dominant direction of causalities was then argued for each correlation and holistically tested with Partial Least Squares (PLS) regression analysis. For the case organizations in the sample, it was found that organizations with high level of Human Resources (HR) capability seem more likely to attract a talented and capable CIO, have an effect on the level of work complexity, and to beget a high level of Information Technology capability. The organization's culture appears to be correlated with the level of HR capability as well as influence the level of strategic management and change management capabilities.