THE IMPACT OF ORGANIZATIONAL 
COMMITMENT ON STRATEGIC INFORMATION 
SYSTEM PLANNING 
 
 
 
 
 
 
 
 
 
 
MASTER OF BUSINESS ADMINISTRATION  
IN  
INFORMATION TECHNOLOGY 
 
 
 
 
 
 
 
 
 
 
J.N.JAYASINGHE 
04/9095 
Department of Computer Science and Engineering 
University of Moratuwa 
December 2007 
  
 
THE IMPACT OF ORGANIZATIONAL 
COMMITMENT ON STRATEGIC INFORMATION 
SYSTEM PLANNING 
 
 
 
 
 
 
By 
 
J.N.Jayasinghe 
04/9095 
 
 
 
The dissertation was submitted to the partial fulfillment of the 
requirement for the Degree of Master of Business Administration. 
 
 
Department of Computer Science & Engineering 
University of Moratuwa 
December 2007 
  
DECLARATION 
 
I certify that this thesis does not incorporate without  acknowledgement to the material 
previously submitted for a degree or diploma in any university to the best of my 
knowledge and I belief it does not contain any material previously submitted for a 
written or orally communicated by other person except where due reference was made 
on this. 
 
……………………… 
J.N.Jayasinghe-04/9095 
 
 
 
To the best of my knowledge the above particulars are correct 
Research Supervisor: 
 
 
…………………………… 
Dr. Kennedy Gunawardana 
Senior Lecturer, 
Department of Accounting, 
Faculty of Management Studies & Commerce, 
University of Sri Jayawardenapura, 
Sri Lanka. 
 
 
 
 
 
i  
TABLE OF CONTENT 
 
List of Figures v 
List of Tables vi 
Acknowledgement vii 
Abstract viii 
 
CHAPTER 01 .................................................................................................................v 
INTRODUCTION ......................................................................................................... 1 
1.1 Background of the Study ............................................................................... 1 
1.2 Research Problem .......................................................................................... 3 
1.3 Research Objectives ....................................................................................... 4 
1.4 Significance of the Study............................................................................... 4 
1.5 Research Methodology .................................................................................. 5 
1.5.1 Population .............................................................................................. 5 
1.5.2 Sample.................................................................................................... 5 
1.5.3 Data Collection Method ......................................................................... 5 
1.5.4 Data Analysis ......................................................................................... 5 
1.5.5 Nature and Forms of Results.................................................................. 6 
1.6 Scope of the Study ..................................................................................... 6 
1.7 Structure of the Report ......................................................................................... 6 
 
CHAPTER 02 ................................................................................................................ 8 
LITERATURE REVIEW .............................................................................................. 8 
2.1 Introduction.................................................................................................... 8 
2.2 Organization................................................................................................... 8 
2.2.1 Common Characteristics of Organizations ............................................ 9 
2.2.2 Types of Organizations ........................................................................ 10 
2.2.3 Existence of Business........................................................................... 11 
2.3 Commitment ................................................................................................. 11 
2.3.1 Organizational Commitment................................................................ 12 
2.4. System.......................................................................................................... 13 
2.4.1 Information System.............................................................................. 13 
ii  
2.4.2 Information Systems and Organizations .............................................. 14 
2.4.3 Organization and Competitive Advantages ......................................... 14 
2.4.4 Strategic Information System............................................................... 15 
2.5 Planning ....................................................................................................... 18 
2.5.1 Strategic Planning ................................................................................ 18 
2.5.2 Information System Planning .............................................................. 21 
2.5.3 Information System  Planning Models ................................................ 23 
2.6 Strategic Information System Planning ....................................................... 28 
2.6.1 Evolution of Information System  Planning ........................................ 28 
2.6.2 The Pre-Strategic Planning Era............................................................ 29 
2.6.3 The Early Strategic Information System  Planning Era. ...................... 30 
2.6.4 Traditional SDLC................................................................................. 31 
2.6.5 Current Trends in Information System  Planning ................................ 32 
2.6.6 Strategic Information System Planning ............................................... 32 
2.6.7 SISP Approaches.................................................................................. 39 
2.6.8 Parties Involved in SISP ...................................................................... 39 
2.7 SISP Success................................................................................................ 40 
2.8 Issues of Strategic IS Plan............................................................................ 43 
2.9 Organizational Commitment and SISP ........................................................ 45 
2.10 Conclusion ................................................................................................... 45 
 
CHAPTER 03 .............................................................................................................. 46 
CONCEPTUAL FRAME WORK AND METHODOLOGY ..................................... 46 
3.1 Introduction.................................................................................................. 46 
3.2 Conceptual Framework ................................................................................ 46 
3.3 SISP Success Measures................................................................................ 47 
3.3.1 Align ITwith Business Needs. ............................................................. 47 
3.3.2 Gain a Competitive Advantage from Information Technology. .......... 47 
3.3.3 Identify New and Higher Payback Applications. ................................ 47 
3.3.4 Identify Strategic Applications. ........................................................... 47 
3.3.5 Increase Top Management Commitment to IT. ................................... 48 
3.3.6 Improve Communication about IT with Users. ................................... 48 
3.3.7 Forecast IT Resource Requirement...................................................... 48 
3.3.8 Allocate IT Resources. ......................................................................... 48 
iii  
3.4 Hypothesis.................................................................................................... 49 
3.4.1 Sufficient Resource Allocation............................................................ 49 
3.4.2 Organizational Support ........................................................................ 49 
3.4.3 Key People Stay on SISP from Start to intains the Continuity............ 49 
3.4.4 Management Control............................................................................ 50 
3.4.5 Management Expectation..................................................................... 50 
3.4.6 High Credibility ................................................................................... 50 
3.4.7 Organizational Commitment................................................................ 50 
3.5 Pilot Survey.................................................................................................. 51 
3.6.1 Data Collection .................................................................................... 51 
3.6.2 Reliability and Validity of the Variables ............................................. 51 
3.6.3 Method of Measuring SIS .................................................................... 52 
3.6.4. Method of Measuring OC and SISP .................................................... 52 
3.7. Decision Rules and Methods of Interpretation ............................................ 53 
3.7.1. Measuring SIS in the Banking Sector.................................................. 53 
3.7.2.  OC Measuring Method ....................................................................... 53 
3.8 Analysis Tools .............................................................................................. 54 
3.9 Conclusion ................................................................................................... 55 
 
CHAPTER 04 .............................................................................................................. 56 
DATA PRESENTATION AND ANALYSIS ............................................................. 56 
4.1 Introduction.................................................................................................. 56 
4.1.1 Presentation  and Analysis of Data ...................................................... 56 
4.1.2 Reliability and Validity Analysis ......................................................... 56 
4.1.3 Identification of SISs ........................................................................... 57 
4.1.4 Presentation and Analysis of Demographic data ................................. 60 
4.2.4. Frequency Statistical Analysis for Depe. and Indep. Variables........... 67 
4.2.4.1.   Organizational Commitment Measuring Variables –Indep. Variables . 67 
4.2.5 Bivariate Analysis for Dependant and Independent Variables ............ 75 
4.2.6.  Hypothesis Testing.............................................................................. 79 
4.2.7. Bivariate Analysis ................................................................................ 82 
4.3. Conclusion ........................................................................................................ 86 
 
 
 
iv  
CHAPTER 05 .............................................................................................................. 87 
DISCUSSION OF RESULTS...................................................................................... 87 
5.1.  Introduction................................................................................................. 87 
5.2. Discussion on the SIS in the Banking Sector in Sri Lanka .......................... 87 
5.3 Present level of OC on SISP in Banking Sector. ......................................... 87 
5.4 Measure the degree of SISP success in Banking Industry. .......................... 88 
5.5  Discussion on Sufficient Resource Allocation for SISP and SISP Success 88 
5.6.  Discussion on Organizational Support for SISP and SISP Success ........... 88 
5.7 Discussion on Key People stays on SISP from start to Finish ISP Success 89 
5.8 Discussion on High Credibility of SISP SISP Success................................ 90 
5.9. Discussion on Management Expectation of SISP and SISP Success .......... 90 
5.10.    Discussion on Management Control for SISP and SISP Success ................ 91 
5.11 Discussion on OC and SISP Success ........................................................... 91 
5.12.    Conclusion ................................................................................................... 93 
 
CHAPTER 06 .............................................................................................................. 94 
CONCLUSION AND RECOMMENDATIONS ........................................................ 94 
6.1. Introduction....................................................................................................... 94 
6.2. Findings............................................................................................................. 94 
6.3. Recommendations, implecation & future studies……………………………. 95 
6.4. Limitations of the Study.................................................................................... 95 
 
REFERENCE 
APPENDIX 01- Questionnaire 
APPENDIX 02- Variable Separation of the Questionnaire 
APPENDIX 03- Analyzed data
v  
 
LIST OF FIGURES 
 
 
Figure 2.1:  Strategic Planning Process  
Figure 2.2: Integrated Functional for Information Requirement 
Figure 2.3: Firms Value Chain and the Industry Value Chain 
Figure 2.4: Model For IS Planning 
Figure 2.5: Expanded Systems Development Life-Cycle 
Figure 2.6:  Strategic IS Planning  
Figure 2.7: Three Stagers of Planning 
Figure 2.8:  Model For IS Planning 
Figure 2.9: Two-Dimensional Model of Planning System Success 
Figure 4.1: Type of Organizations 
Figure 4.2: Designation of Respondents 
Figure 4.3: Histogram for Age 
Figure 4.4:  Responses in Gender Wise 
Figure4.5:  Educational Qualification 
Figure 4.6:  Working Experience 
Figure 4.7:  Column Chart for Independent Variables 
Figure 4.8:  Column Chart for Dependent Variables 
 
 
 
vi  
LIST OF TABLES 
 
Table 2.1: SIS Planning Processors 
Table 2.2: Strategies for Competitive Advantage 
Table 2.3: Strategic Plan Components 
Table 2.4: Types of Strategic Plans and Important Strategic 
Table 2.5: Summarized Strengths and Weakness of the Above Planning Models 
Table 2.6: Five Phase Framework for ISP 
Table 2.7: Five IS Planning Phases 
Table 2.8: Planning Problems 
Table 3.1: Likert Scales to Measure SIS 
Table 3.2: Likert Scales to Measure OC & SISP 
Table 4.1: Reliability Statistics of Part A, B, and C 
Table 4.2: Average of SIS Measures. 
Table 4.3: Descriptive Statistics of One-Sample T-Test 
Table 4.4: One-Sample Test 
Table 4.5: Type of Organization - Sector Cross Tabulation 
Table 4.6: Banks Distribution in Sector Wise 
Table 4.7: No of Branches 
Table 4.8: Designation of Respondents 
Table 4.9: Descriptive Statistics of Age 
Table 4.10: Responses in Gender Wise 
Table 4.11: Educational Qualifications 
Table4.12: Working Experience 
Table 4.13: Descriptive Statistics of Independent Variables 
Table 4.14: Descriptive Statistics of One-Sample T-Test 
Table 4.15: One-Sample Test 
Table 4.16: Descriptive Statistics of Dependent Variables 
Table 4.17:  Descriptive Statistics of One-Sample T-Test 
Table 4.18: One-Sample Test 
Table 4.19: Correlation between Resource Allocation for SISP and SISP Success 
Table 4.20: Correlation between Organizational Support for SISP and SISP 
Success 
vii  
Table 4.21: Correlation between Key People Stay on SISP from Start to Finish   
Maintains the Continuity and SISP Success 
Table 4.22: Correlation between Management Control for SISP and SISP Success 
Table 4.23:  Correlation between Management Expectation for SISP and SISP  
Table 4.24:  Correlation between High Credibility for SISP and SISP Success 
Table 4.25:  Correlation between Organizational Support for SISP and SISP 
Success 
Table 4.26: Results of Regression Analysis 
Table 4.27: Results of Regression Analysis 
Table 4.28: Results of Regression Analysis 
Table 4.29: Results of Regression Analysis 
Table 4.30: Results of Regression Analysis 
Table 4.31: Results of Regression Analysis 
Table 4.32: Results of Regression Analysis 
Table 4.33: Summary of the Hypothesis Testing 
Table 4.34: Summary of the Models Developed. 
 
 
 
 
viii  
LIST OF ABBTIVIATIONS 
 
 
IS - Information System 
SIS - Strategic Information System 
ISP - Information System Planning 
SISP - Strategic Information System Planning 
OC - Organizational Commitment 
IT - Information Technology 
CIO - Chief Information Officer 
CSF - Critical Success Factor 
BSP - Business System Planning 
SSP - Strategic System Planning 
IE - Information Engineering 
  
 
 
 
ix  
ACKNOWLEDGEMENT 
 
 
It is my duty to pay gratitude to those who extended the fullest support to make 
my thesis a reality. I am grateful to my supervisor, Dr. Kennedy Gunawardana, 
Senior Lecturer, Department of Accounting, University of Sri Jayawardanapura, 
Sri Lanka for his commitment to my research as well as for the invaluable 
guidance and encouragement.  
 
Special thanks go to my Panel of Lecturers of the MBA-IT program at University 
of Moratuwa, Sri Lanka who encouraged me to do a task of this kind. I should not 
miss the opportunity of conveying my sincere appreciation to Professor of MIS 
Albert L. Lederer, University of Kentucky whose help contributed me a lot to 
decided what to do as a thesis and the areas to focus. His guidance put me on the 
track with sufficient reference materials as well. Further I extend my special 
thanks to Mr. Duminda Kuruppuarchchi, Lecturer, Department of Information 
Technology and Decision Science, Mr. K.H. Hemantha Kumara, Senior Lecturer, 
Department of Human Resource Management, and the other colleagues for being 
with me generously stretching out their helping hands.  
 
It is very much appreciated the support given to me by filling questionnaires and 
also providing information on banks as well as literatures on the topic which was a 
critical event for researcher to gather data and information to the scope of the 
research.  
 
I must never forget the great assistance and encouragement given to me by my 
family members specially my parents, husband who wish and bless success in my 
life as well as reduced the weight of family responsibilities.  
 
Last but not least I would like thank everybody who helped me to achieve this 
goal.  
x  
ABSTRACT 
 
 
This paper presents the impact of Organizational Commitment (OC) on Strategic 
Information System Planning (SISP) in Sri Lankan banking sector. SISP is an 
important management function and has consistently been identified as one of the 
most critical issues facing IS executives. Organizational Commitment plays a critical 
role when planning information systems strategically in an organization. The paper 
identified that the Organizational Commitment means company support for SISP. 
When compared to all other sectors Information Technology usage in banking sector 
is at the highest level in Sri Lanka. So that it was a need to find out the relationship 
between OC and SISP particularly in the banking sector.  The study mainly answers 
the questions of how Organizational Commitment contributes to the degree of success 
of SISP and to understand the present level of Organizational Commitment on SISP in 
the sector. Further the study examines the most important factors of the Organizational 
Commitment on existing SISP and measures the relationship between Organizational 
Commitment and SISP. Finally, the study aims to develop a model to improve the 
success of SISP in Sri Lankan banking sector. 
The empirical data was drawn from 30 licensed commercial banks and licensed 
specialized banks to analyze the data by using correlation. The regression analysis was 
used to build the model to improve the success of SISP. The findings specify that 
there is a positive relationship between SISP success and Organizational 
Commitment. Correlation elaborates the relationship between the OC factors and 
SISP. The major implication of the study is that the Organizational Commitment is a 
main factor for the success of SISP.