Developing an Information Systems Capability Framework for South African Mining Firms

Abstract

Information systems capability is considered one of a firm's most valuable assets as it is what enables organisations to perform and achieve business goals. Scholars emphasise that the key to transforming a business into a successful entity is through its information systems capability. The relevance of this thesis is in addressing a current information systems capability key issue by conceptualising a framework, in the context of South African mining firms. The research argument driving the present study was that information systems (IS) value is derived when there is an integration of appropriate competencies, skills, leadership, experience, infrastructure, human resources, and stakeholder relationships. Consequently, information systems capability was studied by looking at how both technology and human resources, as well as the leadership and external resource dependency elements, play a role within mining firms. The research problem is that, although mining firms invest millions of Rands in information technologies and systems, they hardly realise the IT value and a tangible return-on-investment. In this thesis, it is inferred that the challenge lies in a misaligned information systems leadership, resources, and competencies; that is, information systems capability. The thesis argues that a mine's information system capability pays off if it is aligned within the specific context in which a mine functions and operates, hence a need for a South African context specific framework. Triangulating three theoretical lenses - Information technology capability model, Upper echelon theory, and Resource dependency theory - the goal of the present study was to conceptualise an information systems capability framework, in the context of mining firms operating in South Africa. The study followed an interpretivist research philosophy with a case study as a research strategy. Data were collected through semi-structured interviews and organizational documents to profoundly understand how information systems capability manifests in a typical South African mining firm. Thematic and content analysis were the methods used to derive meanings out of the collected data. The study findings suggest that a sound information systems capability and information technology value could be derived when there is an integration of appropriate competencies, skills, leadership, experience, infrastructure, human resources and stakeholder relationships. The framework conceptualised shows the theoretical, practical, and contextual contributions of this thesis. That is, the framework addresses how Information Systems capability and Information Technology value may be derived, in the context of a South African mining firm.