Business Continuity Management Factors and Organizational Performance: A study on the Moderating Role of it Capability
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Published:
2024-04-11
Keywords:
Business Continuity Management, organizational performance, IT capability, ISO 27001, ISO 22301
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Abstract
The objective of this paper is to examine the moderating effect of IT capability on the relationship between Business Continuity Management (BCM) factors and the organizational performance. The constructs of this paper are defined based on a comprehensive review of recent literature on BCM, organizational performance and IT capability. For this study, the data was collected through various methods including self-administered approach and distribution of questionnaires via electronic and conventional mail. The target population of the study is organizations which are certified with ISO 27001 and ISO 22301 as these organizations are selected as they are deemed to possess considerably higher sense of commitment towards embracing BCM best practices to enhance their business resiliency. Â The findings of this study indicated that IT capability partially moderated the relationship between BCM factors and organizational performance. The outcome of this study provides important insight to researchers and BCM professionals in understanding on the effects of BCM factors and IT capability on the organizational performance.
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How to Cite
Business Continuity Management Factors and Organizational Performance: A study on the Moderating Role of it Capability. (2024). Journal of Management Info, 2(3), 5-12. https://doi.org/10.31580/jmi.v7i1.38
References
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Anderson, J. C., & Gerbing, D. W. (1988). Structural Equation Modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103, 411–423.
Babbie, E. (2004). The practice of social research (10th ed.). Belmont California: Thomson/Wadsworth Learning.
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.
Baron, R. M., & Kenny, D. a. (1986). The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–82. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/3806354
Belaouras, S. (2009). State of Business Continuity Preparedness. Disaster Recovery Journal, 22(1). Retrieved from http://www.drj.com/index.php?option=com_content&task=view&id=2206&Itemid=676
Cavana, R., Delahaye, B. L., & Sekaran, U. (2001). Applied business research: qualitative and quantitative methods. Singapore: Markono Print Media Ltd.
Childs, D., & Dietrich, S. (2002). Contingency Planning and Disaster Recovery: A Small Business Guide. Hoboken, NJ.: John Wiley & Sons.
Chow, W. S. (2000). Success factors for IS disaster recovery planning in Hong Kong. Information Management & Computer Security, 8(2), 80–87. doi:10.1108/09685220010321326
Chow, W. S., & Ha, W. O. (2009). Determinants of the critical success factor of disaster recovery planning for information systems. Information Management & Computer Security, 17(3), 248–275. doi:10.1108/09685220910978103
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Hillsdale, NJ: Erlbaum.
Cooper, D., & Schindler, P. (2003). Business Research Methods (8th ed.). McGraw Hill.
Elliott, D., Swartz, E., & Herbane, B. (2010a). Business Continuity Management – A crisis management approach (2nd ed.). London: Routledge.
Elliott, D., Swartz, E., & Herbane, B. (2010b). Business continuity management: a crisis management approach (2nd ed.). New York, USA: Routledge.
Frazier, P. A., Tix, A. P., & Barron, K. E. (2004). Testing moderator and mediator effects in counselling psychology research. Journal of Counselling Psychology, 51(1), 115–134.
Gibb, F., & Buchanan, S. (2006). A framework for business continuity management. International Journal of Information Management, 26(2), 128–141. Retrieved from http://www.sciencedirect.com/science/article/B6VB4-4JN2P51-1/2/57980f789e3c81f88a500981a33a3b45
Grant, R. M. (1991). The Resource-Based Theory of Competitive Advantage: ImpHcations for Strategy Formulation. California Management Review, 33, 37–40.
Hair, J., Money, A. H., Page, M., & Samouel, P. (2007). Editors, Research Methods for Business. West Sussex, England: John Wiley & Sons.
Hecht, J. (2002). Business Continuity Management. Communications of the Association for Information Systems, 10, 444–450.
Herbane, B. (2010). The evolution of business continuity management: A historical review of practices and drivers. Business History, 52(6), 978–1002. doi:10.1080/00076791.2010.511185
Herbane, B., Elliott, D., & Swartz, E. M. (2004). Business Continuity Management: time for a strategic role? Long Range Planning, 37(5), 435–457. doi:10.1016/j.lrp.2004.07.011
Hoong, L. L. (2011). Factors Influencing the Success of the Disaster Recovery Planning Process : A Conceptual Paper. In Research and Innovation in Information Systems (ICRIIS), 2011 International Conference.
Jacks, T., Palvia, P., Schilhavy, R., & Wang, L. (2011). A framework for the impact of IT on organizational performance. Business Process Management Journal, 17(5), 846–870. doi:10.1108/14637151111166213
Jafari, M., Chadegani, A., & Biglari, V. (2011). Effective risk management and company’s performance: investment in innovations and intellectual capital using behavioural and practical approach. International Research Journal of Finance and Economics, 3(15), 780–786. doi:10.5897/JEIF11.123
Järveläinen, J. (2013). IT incidents and business impacts: Validating a framework for continuity management in information systems. International Journal of Information Management, 33(3), 583–590. doi:10.1016/j.ijinfomgt.2013.03.001
Karim, A. J. (2011). Business Disaster Preparedness: An Empirical Study for measuring the Factors of Business Continuity to face Business Disaster. International Journal of Business & Social Science, 2(18), 183–192. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=66726542&site=ehost-live
Khan, F., Rasli, A. M., Khan, S., Yasir, M., & Malik, M. F. (2014). Job Burnout and Professional Development among Universities Academicians. Science International Lahore, 26(4), 1693-1696.
KPMG. (2014). The 2013-2014 Continuity Insights and KPMG LLP Global Business Continuity Management (BCM) Program Benchmarking Study.
Li, E. Y., Chen, J. S., & Huang, Y. H. (2006). A framework for investigating the impact of IT capability and organisational capability on firm performance in the late industrialising context. International Journal of Technology Management, 36(1/2/3), 209. doi:10.1504/IJTM.2006.009969
Li, M. L., & Ye, L. R. (1999). Information technology and firm performance: linking with environmental, strategic and managerial. Information & Management, 35(1), 43–51.
Liang, T. P., You, J. J., & Liu, C. C. (2010). A resource-based perspective on information technology and firm performance: a meta analysis. Industrial Management & Data Systems, 110(8), 1138–1158. doi:10.1108/02635571011077807
Lindström, J., Samuelsson, S., & Hägerfors, A. (2010). Business continuity planning methodology. Disaster Prevention and Management. doi:10.1108/09653561011038039
Lingeswara, R., & Tammineedi, S. (2012). Key Issues, Challenges and Resolutions in Implementing Business Continuity Projects. ISACA Journal, 1, 20–23.
Nunally, J. C. (1978). Psychometric Theory (2nd ed.). New York: McGraw-Hill.
Pearson, C. M., & Clair, J. A. (1998). Reframing Crisis Management. The Academy of Management Review, 23(1), 59–76. doi:10.2307/259099
Pearson, G., & Woodman, P. (2012). The 2012 Business Continuity Management Survey. Chartered Management Institute.
Peterson, C. A. (2009). Business continuity management & guidelines. 2009 Information Security Curriculum Development Conference on - InfoSecCD ’09, 114. doi:10.1145/1940976.1940999
Petroni, A. (1999). Managing information systems’ contingencies in banks: a case study. Disaster Prevention and Management, 8(2), 101–110. doi:10.1108/09653569910266139
Pitt, M., & Goyal, S. (2004). Business continuity planning as a facilities management tool. Facilities, 22(3/4), 87–99. doi:10.1108/02632770410527824
Randeree, K., Mahal, A., & Narwani, A. (2012). A business continuity management maturity model for the UAE banking sector. Business Process Management Journal, 18(3), 472–492. doi:10.1108/14637151211232650
Rockart, J. F. (1979). Chief executives define their own data needs. Harvard Business Review, 57(2), 81–93. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/10297607
Rosenthal, P. H., & Sheniuk, G. (1993). Business Resumption Planning: Exercising the Disaster Management team. Journal of Systems Management, 44(6), 12–16.
Ross, J. W., Mathis, C., & Dale, B. (1996). Develop Long-Term Competitiveness through IT Assets. Sloan Management Review, 38(1), 31–42.
Russ, F. A., & McNeilly, K. M. (1995). Links among satisfaction, commitment, and turnover intentions: The moderating effect of experience, gender, and performance. Journal of Business Research, 34, 57–65.
Saleem, S. (2011). Do effective risk management affect organizational performance. European Journal of Business and Management, 3(3), 258–268.
Santhanam, R., & Hartono, E. (2003). Issues in Linking Information Technology Capability to Firm Performance. MIS Quarterly, 27(1), 125–153.
Saunders, M., Lewis, P., & Thornhill, A. (2000). Research Methods for Business Students (2nd ed.). Harlow, England: Prentice Hall.
Sawalha, I. H. S. (2013). Organisational performance and business continuity management: a theoretical perspective and a case study. Journal of Business Continuity & Emergency Planning, 6(4), 360–73. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/23835428
Sekaran, U. (2003). Research methods for business: A skill building approach (4th ed.). New York, NY: John Willey & Sons.
Selden, S., & Perks, S. (2007). How a structured BIA aligned business continuity management with Gallaher ’ s strategic objectives. Journal of Business Continuity & Emergency Planning, 1(4), 348–355.
Solms, R. Von, & Botha, J. (2004). A cyclic approach to business continuity planning. Information Management & Computer Security. doi:10.1108/09685220410553541
Tippins, M. J., & Sohi, R. S. (2003). IT Competency and Firm Performance: Is Organizational Learning a Missing Link? Strategic Management Journal, 761(March), 745–761.
Vancoppenolle, G. (2007). The Definitive Handbook of Business Continuity Management Second Edition. (A. Hiles, Ed.). England: John Wiley & Sons Ltd.
Wong, W. N. Z. (2009). The strategic skills of business continuity managers: putting business continuity management into corporate long-term planning. Journal of Business Continuity & Emergency Planning, 4, 62–68.
Yiu, K., & Tse, Y. Y. (1995). A Model for Disaster Recovery Planning. IS Audit & Control Journal, 5, 45–51.
Yongmei, L. I. U., Hongjian, L. U., & Junhua, H. U. (2008). IT Capability as Moderator Between IT Investment and Firm Performance. Tsinghua Science and Technology, 13(3), 329–336.
Zikmund, W. G. (1991). Business Research Methods (3rd ed.). Orlando, FL: Dryden.
Anderson, J. C., & Gerbing, D. W. (1988). Structural Equation Modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103, 411–423.
Babbie, E. (2004). The practice of social research (10th ed.). Belmont California: Thomson/Wadsworth Learning.
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.
Baron, R. M., & Kenny, D. a. (1986). The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–82. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/3806354
Belaouras, S. (2009). State of Business Continuity Preparedness. Disaster Recovery Journal, 22(1). Retrieved from http://www.drj.com/index.php?option=com_content&task=view&id=2206&Itemid=676
Cavana, R., Delahaye, B. L., & Sekaran, U. (2001). Applied business research: qualitative and quantitative methods. Singapore: Markono Print Media Ltd.
Childs, D., & Dietrich, S. (2002). Contingency Planning and Disaster Recovery: A Small Business Guide. Hoboken, NJ.: John Wiley & Sons.
Chow, W. S. (2000). Success factors for IS disaster recovery planning in Hong Kong. Information Management & Computer Security, 8(2), 80–87. doi:10.1108/09685220010321326
Chow, W. S., & Ha, W. O. (2009). Determinants of the critical success factor of disaster recovery planning for information systems. Information Management & Computer Security, 17(3), 248–275. doi:10.1108/09685220910978103
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Hillsdale, NJ: Erlbaum.
Cooper, D., & Schindler, P. (2003). Business Research Methods (8th ed.). McGraw Hill.
Elliott, D., Swartz, E., & Herbane, B. (2010a). Business Continuity Management – A crisis management approach (2nd ed.). London: Routledge.
Elliott, D., Swartz, E., & Herbane, B. (2010b). Business continuity management: a crisis management approach (2nd ed.). New York, USA: Routledge.
Frazier, P. A., Tix, A. P., & Barron, K. E. (2004). Testing moderator and mediator effects in counselling psychology research. Journal of Counselling Psychology, 51(1), 115–134.
Gibb, F., & Buchanan, S. (2006). A framework for business continuity management. International Journal of Information Management, 26(2), 128–141. Retrieved from http://www.sciencedirect.com/science/article/B6VB4-4JN2P51-1/2/57980f789e3c81f88a500981a33a3b45
Grant, R. M. (1991). The Resource-Based Theory of Competitive Advantage: ImpHcations for Strategy Formulation. California Management Review, 33, 37–40.
Hair, J., Money, A. H., Page, M., & Samouel, P. (2007). Editors, Research Methods for Business. West Sussex, England: John Wiley & Sons.
Hecht, J. (2002). Business Continuity Management. Communications of the Association for Information Systems, 10, 444–450.
Herbane, B. (2010). The evolution of business continuity management: A historical review of practices and drivers. Business History, 52(6), 978–1002. doi:10.1080/00076791.2010.511185
Herbane, B., Elliott, D., & Swartz, E. M. (2004). Business Continuity Management: time for a strategic role? Long Range Planning, 37(5), 435–457. doi:10.1016/j.lrp.2004.07.011
Hoong, L. L. (2011). Factors Influencing the Success of the Disaster Recovery Planning Process : A Conceptual Paper. In Research and Innovation in Information Systems (ICRIIS), 2011 International Conference.
Jacks, T., Palvia, P., Schilhavy, R., & Wang, L. (2011). A framework for the impact of IT on organizational performance. Business Process Management Journal, 17(5), 846–870. doi:10.1108/14637151111166213
Jafari, M., Chadegani, A., & Biglari, V. (2011). Effective risk management and company’s performance: investment in innovations and intellectual capital using behavioural and practical approach. International Research Journal of Finance and Economics, 3(15), 780–786. doi:10.5897/JEIF11.123
Järveläinen, J. (2013). IT incidents and business impacts: Validating a framework for continuity management in information systems. International Journal of Information Management, 33(3), 583–590. doi:10.1016/j.ijinfomgt.2013.03.001
Karim, A. J. (2011). Business Disaster Preparedness: An Empirical Study for measuring the Factors of Business Continuity to face Business Disaster. International Journal of Business & Social Science, 2(18), 183–192. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=66726542&site=ehost-live
Khan, F., Rasli, A. M., Khan, S., Yasir, M., & Malik, M. F. (2014). Job Burnout and Professional Development among Universities Academicians. Science International Lahore, 26(4), 1693-1696.
KPMG. (2014). The 2013-2014 Continuity Insights and KPMG LLP Global Business Continuity Management (BCM) Program Benchmarking Study.
Li, E. Y., Chen, J. S., & Huang, Y. H. (2006). A framework for investigating the impact of IT capability and organisational capability on firm performance in the late industrialising context. International Journal of Technology Management, 36(1/2/3), 209. doi:10.1504/IJTM.2006.009969
Li, M. L., & Ye, L. R. (1999). Information technology and firm performance: linking with environmental, strategic and managerial. Information & Management, 35(1), 43–51.
Liang, T. P., You, J. J., & Liu, C. C. (2010). A resource-based perspective on information technology and firm performance: a meta analysis. Industrial Management & Data Systems, 110(8), 1138–1158. doi:10.1108/02635571011077807
Lindström, J., Samuelsson, S., & Hägerfors, A. (2010). Business continuity planning methodology. Disaster Prevention and Management. doi:10.1108/09653561011038039
Lingeswara, R., & Tammineedi, S. (2012). Key Issues, Challenges and Resolutions in Implementing Business Continuity Projects. ISACA Journal, 1, 20–23.
Nunally, J. C. (1978). Psychometric Theory (2nd ed.). New York: McGraw-Hill.
Pearson, C. M., & Clair, J. A. (1998). Reframing Crisis Management. The Academy of Management Review, 23(1), 59–76. doi:10.2307/259099
Pearson, G., & Woodman, P. (2012). The 2012 Business Continuity Management Survey. Chartered Management Institute.
Peterson, C. A. (2009). Business continuity management & guidelines. 2009 Information Security Curriculum Development Conference on - InfoSecCD ’09, 114. doi:10.1145/1940976.1940999
Petroni, A. (1999). Managing information systems’ contingencies in banks: a case study. Disaster Prevention and Management, 8(2), 101–110. doi:10.1108/09653569910266139
Pitt, M., & Goyal, S. (2004). Business continuity planning as a facilities management tool. Facilities, 22(3/4), 87–99. doi:10.1108/02632770410527824
Randeree, K., Mahal, A., & Narwani, A. (2012). A business continuity management maturity model for the UAE banking sector. Business Process Management Journal, 18(3), 472–492. doi:10.1108/14637151211232650
Rockart, J. F. (1979). Chief executives define their own data needs. Harvard Business Review, 57(2), 81–93. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/10297607
Rosenthal, P. H., & Sheniuk, G. (1993). Business Resumption Planning: Exercising the Disaster Management team. Journal of Systems Management, 44(6), 12–16.
Ross, J. W., Mathis, C., & Dale, B. (1996). Develop Long-Term Competitiveness through IT Assets. Sloan Management Review, 38(1), 31–42.
Russ, F. A., & McNeilly, K. M. (1995). Links among satisfaction, commitment, and turnover intentions: The moderating effect of experience, gender, and performance. Journal of Business Research, 34, 57–65.
Saleem, S. (2011). Do effective risk management affect organizational performance. European Journal of Business and Management, 3(3), 258–268.
Santhanam, R., & Hartono, E. (2003). Issues in Linking Information Technology Capability to Firm Performance. MIS Quarterly, 27(1), 125–153.
Saunders, M., Lewis, P., & Thornhill, A. (2000). Research Methods for Business Students (2nd ed.). Harlow, England: Prentice Hall.
Sawalha, I. H. S. (2013). Organisational performance and business continuity management: a theoretical perspective and a case study. Journal of Business Continuity & Emergency Planning, 6(4), 360–73. Retrieved from http://www.ncbi.nlm.nih.gov/pubmed/23835428
Sekaran, U. (2003). Research methods for business: A skill building approach (4th ed.). New York, NY: John Willey & Sons.
Selden, S., & Perks, S. (2007). How a structured BIA aligned business continuity management with Gallaher ’ s strategic objectives. Journal of Business Continuity & Emergency Planning, 1(4), 348–355.
Solms, R. Von, & Botha, J. (2004). A cyclic approach to business continuity planning. Information Management & Computer Security. doi:10.1108/09685220410553541
Tippins, M. J., & Sohi, R. S. (2003). IT Competency and Firm Performance: Is Organizational Learning a Missing Link? Strategic Management Journal, 761(March), 745–761.
Vancoppenolle, G. (2007). The Definitive Handbook of Business Continuity Management Second Edition. (A. Hiles, Ed.). England: John Wiley & Sons Ltd.
Wong, W. N. Z. (2009). The strategic skills of business continuity managers: putting business continuity management into corporate long-term planning. Journal of Business Continuity & Emergency Planning, 4, 62–68.
Yiu, K., & Tse, Y. Y. (1995). A Model for Disaster Recovery Planning. IS Audit & Control Journal, 5, 45–51.
Yongmei, L. I. U., Hongjian, L. U., & Junhua, H. U. (2008). IT Capability as Moderator Between IT Investment and Firm Performance. Tsinghua Science and Technology, 13(3), 329–336.
Zikmund, W. G. (1991). Business Research Methods (3rd ed.). Orlando, FL: Dryden.