Study on the IT synergies capability and its Order Parameter Model in complex structure orgnizations

Information technologies have a wide range of applicability across almost all industries. The fundamental principles of good IT management are also applicable in many industries. Thus, firms whose business units operate in different industries have an opportunity to exploit cross-unit IT synergies by applying their IT resources and capabilities across multiple units. This study examines sources of cross-unit IT synergy and constructs the Order Parameter Model of the IT synergy capability. Building on the resource-based view of diversification and the economic theory of complementarities, the study identifies the relatedness and complementarity of IT resources as two major sources of cross-unit IT synergy. It argues that IT relatedness creates sub-additive cost synergies, whereas complementarities among IT infrastructure technologies and IT management processes create super-additive value synergies. Building on the Synergetic Theory, the study also examines the mechanism of IT Synergy and constructs the Order Parameter Model. At the end of this paper, we have a conclusion and future work expectation of IT Synergic in CSOs.