Information Technology (IT) Value Model using Variance-Based Structural Equation Modeling: Towards IT Value Engineering

Abstract

Information Technology in business is significant. This study tries to trace the relationship between IT value and firm performance. The methodology of the study is analyzing some variables forming the relationship of IT value to firm performance based on the Resource-Based View Theory. The analysis results in IT Value Model using Variance-Based Structural Equation Modeling. Using computer simulation data and a SEM application software, the conceptual models are tested. The testing consists of the outer model, the inner model, and the hypotheses testing. The outer model testing is to examine the relationship between the reflective manifest variables and their construct. Similarly, the inner model and hypotheses are tested to make sure that among the constructs have causality relationships. According to the testing results, the models meet the fit model criteria as required by the Variance-Based SEM. Likewise, the hypotheses can be accepted. Furthermore, the IT value engineering concept can be developed referred to the fit model and linked to business requirements.

Pengujian Model Pengaruh Tata Kelola TI Terhadap Transformasi Digital dan Kinerja Asuransi B

“…Proses komputasi data meliputi algoritma Partial Least Square (PLS) dan Bootstrapping yang berfungsi untuk menghasilkan data yang dihitung dan model konseptual akan dianalisis dan diterima. Setalah melakukan pengujian dengan menggunakan SmartPLS, selanjutnya akan dilakukan analisis untuk menguji outer model, inner model dan hipotesis [16]. Pada penelitian ini menggunakan analisis deskriptif digunakan untuk menganalisis data dengan cara mendeskripsikan dan menggambarkan data kemudian membuat sebuah keputusan [17] dan teknik analisis menggunakan SEM-PLS.…”

Methodology development of information technology value engineering using systems engineering approach

“…Meaning that the central problem, namely the superior performance of the IT-based firms at lower costs will manifest through engineering performances and cost distributions. Meanwhile, this research has closely related to the preceding studies concentrating on the IT value model from the ontological approach towards IT value engineering [1] and the IT value model using variance-based Structural Equation Modeling (SEM), similarly towards IT value engineering [2]. Also, this study is related to a number of studies discussing the relationship between IT resources to business performances, such as [5], [10], [15], and so forth.…”