GROUP ASSIGNMENT

MANAGEMENT INFORMATION SYSTEM

BPIN3053 (A171)
GROUP D

SUB GROUP 1

LECTURER:
Dr. MUNADIL KHALEEL FAAEQ

FACTORS AFFECTING TECHNOLOGY ADOPTION TO ACHIEVE

ORGANIZATIONAL STRATEGY

PR EPARED BY:

NAME MATRIC NUMBERS E-MAIL

Ilham Randi 251787 Ilhamrandi21@gmail.com
Khoirunnisa Isra 251789 Israkhoirunnisa1997@gmail.com
Sulvia Dila 251780 Dilasulvia02@gmail.com

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 TABLE OF CONTENTS

TABLE OF CONTENTS………………………………………………………….1

1. INTRODUCTION…………………………………………………………2

2. DISSCUSION……………………………………………………………...3

a. Top Management Support……………………………………………….3

b. Resistance to change…………………………………………………….4

c. Financial Constraints……………………………………………….........6

d. Organizational Responsiveness………………………………………….6

e. Information Technology Champion (IT Champion)…………………….7

f. Organizational Culture…………………………………………………..7

g. Technological Capacity………………………………………………….8

h. Availability of ICT (Information and Communication

Technology) system…………………………………………………….8

3. CONCLUSION……………………………………………………………10

REFERENCES……………………………………………………………………11

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 1. INTRODUCTION

In this globalization era, humans are inseparable from the use of technology. For
example in the education, government, and the economic and business world . In
business world, the role of technology is a factor supporting a very significant
influence to determine the sustainability of the business. Businesses are forced to adapt
to existing technological developments. Thus, there is a way to generate an organizational
strategy.

Technology is one of the central and most important elements related to effective
operations management in an organization. It can be defined as a body of knowledge used
to create tools, develop skills, and extract or collect materials. It is also the application of
science (the combination of the scientific method and material) to meet an objective or
solve a problem (Molinero, 2012)

In adoption of technology, there are several factors that affect the achievement of
business strategies that will determine the success of these technologies adoptions. In this
paper we will discuss about the adoption of technology to produce organizational strategy.

Technology Adoption Is a Complex, Inherently Social, Developmental Process.

Most of the research specifically on technology adoption has centered on adoption in a
work environment, with the innovation being a mandated change for employees. Although
work-centered use of information technology is critical, technology has infiltrated far
deeper into everyday life than just formal professions (Evan, 2009)

In general the need to adopt the technology as follows:

1. Quality demands
2. Product development
3. Growth of productivity
4. Global Competition

Before an organization tries to implement a technology, the organization needs to

consider all factors influencing technology adoption so that it can be formulated for
organizational success.

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 Information technologies can assist project and construction managers to
standardize routine tasks so that available organizational resources are utilized both
and efficiently (Adam, 2007).

2. DISCUSSION

Achieving organizational strategy through technology adoption is inseparable from

the factors that affecting it. There are many possibilities for factors that can affect the
adoption of technology to achieve organizational strategy. In this paper, the writers will
explain eight factors that could possibly affect technology adoption to achieve
organizational strategy. That factors are as follows:

a. Top management support

Motivation is a good state, willingness, ability, needs of each individual when

carrying out the work for the achievement of goals organization (Robbins and Coulter,
2004). Top management support is activities that impact, direct and maintain human
behavior shown by the director, president, to the division and organization.

Motivation is a desire stimulant willingness to work one's momentum, each motif

has a specific purpose to be achieved. Top management support is activities that impact,
direct and maintain human behavior is shown by the director, the president, to the division
and so on organization (Hasibuan Sunyoto Malay SP, 2012)

According Sunyoto Danang (2012) the purpose of motivation, among others:

1) Encouraging passion and employee morale

2) Improve the morale of employees and their job satisfaction
3) Improve productivity of labours
4) Maintain loyalty and stability of employees
5) Creating a good atmosphere and working relationship among employees.
6) Increase employee’s creativity and participation.

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 While accordingto Mangkunagara, AA, Anwar Prabu (2012) techniques motivate
employees are as followings :

1) Engineering fulfillment needs employees

Fulfillment needs the underlying fundamentals behavior work. we do know could
motivate employees without pay attention what is needed.

2) Techniques communication persuasion

Technique communication persuasion is wrong one technique motivation work em
ployees do with way influence employees on ekstralogis

The above opinion means that motivate the employees for working could be done
by meeting the needs of the employees and also added with using a good communication
technique.

b. Resistance to change

Reluctant to change is a natural reaction, the reaction form of reluctance can vary,
but the initial reaction to aversion to change is usually in the form of ignoring the need for
change. An accident, only those who are less careful might get hurt ", their way of
thinking is why they are reluctant to make changes, and they tend to be opposed to the
ideas of change. They are afraid of a form of change they do not yet know, feeling that any
change will add to their workload and worry that their work will be caught in their
shortcomings.

The change could includes narrow nor comprehensiveaspect. Narrow aspect could
covers behavior aspect and individual mindset. While comprehensive aspect could be a
change in society structure level which later could influence the society development in the
future (Nanang Martono, 2012)

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Occurrence of change caused by 2 (two) factors namely:

a. internal factors
Internal factors are factor cause the changes from in self human arising
because existence encouragement from self human is to do change on him and
environment. Internal factor can happen if there is existance of encouragement or
motivation to do change. It could be change in shape, attitude, as well as situation.

b. Factor external
Factor external is factor cause the changes from outside self human. Factor
the could caused because of the factors family, community and environment.

Resistance comes from the word resist + ance is shown in the position of an
attitude to behave survive, tried to resist, oppose or attempt opposition in general, this
attitude is not based on or refer to a clear understanding.

The three-dimensional of resistance to change concerned about affective,

behavioral and cognitive components. Affective component is how people feel about
change. Cognitive component is how people think about change. And behavioral
component is what people do in change.

Behavioral responses can have both active and passive responses. Symptoms
of active resistance, indicated as critical, finding fault, ridicule, showing fear, use facts
selectively, errors or accusation, sabotage, intimidation, manipulation, change the fact,
inhibit, destroy, start gossip and argue. Passive retention phenomena are verbally agreed,
but not followed up, fail to implement change, suspend or withhold, pretend to ignore,
withhold information, advice, help or support, wait, and let change fail.
Factors that are driving needs for changes are external forces and internal
forces. External forces include technological change, increasingly intensive competition
and becoming more global, increasingly demanding customers, changing demographic
profiles of the country, social and political pressures, privatization of community-owned
businesses continuing, shareholders asking for more value, while internal strength is low
employment satisfaction , low productivity and conflict.

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 General strategies to resolve resistance to change can be through education,
communication, participation, involvement, assistance, encouragement to all parties
involved in the process and activities of change, facilitation, negotiation, approval,
manipulation and co-optation.

c. Financial Constraints

A decision maker in an organization usually face the concern about potential

investment in new technology. Make it be a new module for the already existing system, a
new system, or even upgrade to the already existing system. Innovation, in this case
technology adoption, in an organization giving it a constant pressure to evaluate, and
decide on whether, and when to invest.
Two main schools of thoughts have emerged to explain why organisations choose
to innovate with technology: the economic-rationalistic perspective focusing on the
organisational performance and the institutional perspective focusing on organizational
legitimacy (Wang, 2010)
Lack of financial resource can be a major barrier in technology adoption. This
problem affecting organization's decision to adopt technology which will affect the
achievement of organizational strategy. But the success of technology adoption can also
help organization reduce the cost.
For example the less expensive sellers' cost of collecting buyer is preference
information and managing multiple prices. Advanced manufacturing technologies have
also improved sales manufacturingflexibility (Dewan, Jing, & Seidman, 2000)

d. Organizational Responsiveness

Organizational responsiveness is a concept that runs throughout multiple variables

involved in marketing action and in the face of a changing environment. It leads the
company to innovate, seize business opportunities, maintain brand dynamics, and adapt
and act proactively (Hult, Ketchen, & Slater, 2005)
This factors affect technology adoption because it involves in facing the changing
environtment which is surely will caused by technology adoption. Organizational
responsiveness induce the company to innovate so this will have the company positive

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impact that will leads to organizational strategy. As information technology develop,
competitive advantage of a company shifting from concern about afficiency to focus on
how to learn and respond to a new technology rapidly. Today’s company realise the
important of adaptability, make it neccessary to rethinking about company structure and
information system. Leading companies nowadays restructuring for greater adaptability
and iteration speed.

e. Information Technology Champion (IT Champion)

This factor is an important one in affecting technology adoption.IT champions

make sense of the ‘why’ of a certain technology, which then makes them aware of their
problems that they face in their own organizations. Whether it is an elected official, an
administrator that already expert, or even the combination of both, there is always an IT
champion.
The study illustrated how champions were able to pinpoint the needs of the
organisations that corresponded to how m-BI (application that support decision based on
data on mobile devices such as smartphone) was legitimised by the m-BI organising vision
(Tona & Carlson, 2013)
What is interesting is that a study discover an IT champion that not only promote
the technology inside their company but also in other company. Promotion is closely
linked to social media channels that play an essential role in supporting the relationship
between an organising vision and an IT champion (Tona, Leidner, & Carlson, 2016).

f. Organizational Culture

The strategies such as productivity, satisfying employees, increasing the

performance direcly effect how the culture implements in the organisation. The
improvements in productivity lead the employee help in improving culture of an
organization (...) and the performance of employees improves by establishment of strong
culture of organization (Osibanjo & Adenji, 2013)

Schnackenberg and Tomlinson, (2014) explain that the company who implements
information technology changes its business processes to the best practice of the
information technology. But, focusing the addaptation may “...contradict the argument

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that culture exerts a homogenizing effect on behavior since behavior associated with
divergent thinking and implementing new products or processes may vary dramatically
across actors and situations” (Guncalo & Duguid, 2012).

g. Technological Capacity

Technology is one of the central and most significant elements related to effective
operations management in an organization. It can be defined as a body of knowledge used
to create tools, develop skills, and extract or collect materials. It is also the application of
science (the combination of the scientific method and material) to meet an objective or
solve a problem (Molinero, 2012)

Technical capacity, in organization level is a measure of what an organization,

through its staff is able to do. It represents organization technical "know-how", as well as
the ability to put that know-how to use (Levin & Tadelis, 2010) sees technical capacity as
having special and practical knowledge in business services areas. Technical capacity
enable to innovations of technology usage. Innovative technologies provide an
enhancement opportunity for a resouce’s value and occure when a resources produces
greater returns in the presence of the technology than it does alone (Kevin, Ray, & David,
2010).

h. Availability of ICT (Information and Communication Technology) system

Availability of information is important to communicate across our increasingly

distributed organizations (Kevin, Ray, & David, 2010). Understanding information for and
in the communication process allows organization to harness their capabilities and
capacities.

Organization now use a variety of ICT to communicate both internally and

externally include adopting, implementing, and maintaining their ICT in a bid to improve
the communication of information and coordination of their activity (Kevin, Ray, & David,
2010).

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(Evan, 2009) explains that there are three conclusions about technology adoption:

a. Technology adoption is a complex, inherently social, and developmental

process
b. Individuals construct unique perceptions of technology that influence adoption
process.
c. Successfully facilitating a technology adoption needs to address cognitive,
emotional, and contextual concerns.

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3. CONCLUSION

In the organization, the achievement of one strategy is influenced by the

implementation of technology. Where in practice there are eight factors that influence the
uses of technology in organization that we have summarized before. By knowing these
factors, we can improve the success of how the implications of good information
technology in achieving the organization's strategy. From explanation about the eight
factors that could affect technology adoption we can conclude that there are a significant
influence that thecnology adoption will give to achieve organizational strategy. That
factors are top management support, resistance to change, financial constraints,
organizational responsiveness, information technology champion, organizational culture,
technological capacity, and availability of ICT (Information and Communication
Technology) system. Each factors affect technology adoption in different parts. Utilization
or implementation of technology must be in operational activities of the organization that
will provide a significant impact and not only on work efficiency but also to the culture of
personal work.

Administrative management of information technology should consider the

development of human resources (HR) to support the optimization of the utilization or the
gradual implementation of information technology which starts with planning,
development, management experts, and operating through the maintenance phase.

Using information technology within an organization or company is also associated

with a competitive advantage to improve quality of information, monitoring performance
of the organization and using both of information technology as tools and strategies that
tough to integrate and process data quickly and accurately as well as to creat a new service
product as power of competitiveness to face the competition.

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