Organizational Constraints to Realizing Business Value from Service Oriented Architectures: An Empirical Study of Financial Service Institutions

  • Haresh Luthria
  • Fethi Rabhi
Part of the Lecture Notes in Computer Science book series (LNCS, volume 5364)


Service-oriented architectures (SOAs) are gaining popularity as an approach to provide flexibility and agility, not just in systems development but also in business process management. Studies of the practical business impacts of SOA are crucial as the number of SOA implementations grows, and are required for a better critical understanding of this popular architectural concept that is being rapidly adopted by industry organizations. Although there is a significant amount of ongoing research related to technology implementations of SOAs, there is a paucity of research literature on the factors affecting the adoption of service-oriented computing and the realization of business value in practice. This paper empirically examines the adoption of service-oriented computing (SOC) as an enterprise strategy across fifteen firms, and discusses the organizational constraints that influence the enterprise adoption and implementation of SOA. In doing so, this paper fills a crucial gap in the academic literature about the practical use of SOA as an enterprise strategy for agility, and lays the groundwork for future work on SOA alignment with organizational strategy. The paper also provides practitioners with guidelines for the successful implementation of SOA to achieve business value.


Service Oriented SOA SOC Business Value Organizational Constraints Technology Adoption Technology Diffusion 


  1. 1.
    Baskerville, R., et al.: Extensible Architectures: The Strategic Value of Service-Oriented Architecture in Banking. In: Thirteenth European Conference on Information Systems, Regensburg, Germany (2005)Google Scholar
  2. 2.
    Beidleman, C., Ray, M.: The agility revolution. In: Cortada, J.W., Woods, J.A. (eds.) The Quality Yearbook 1998 (1998)Google Scholar
  3. 3.
    Benbasat, I., Goldstein, D.K., Mead, M.: The Case Research Strategy in Studies of Information Systems. MIS Quarterly 11(3), 369–386 (1987)CrossRefGoogle Scholar
  4. 4.
    Bieberstein, N., et al.: Impact of service-oriented architecture on enterprise systems, organizational structures, and individuals. IBM Systems Journal 44(4), 691–708 (2005)CrossRefGoogle Scholar
  5. 5.
    Broadbent, M., Weill, P.: Improving business and information strategy alignment: learning from the banking industry. IBM Systems Journal 32(1), 162–179 (1993)CrossRefGoogle Scholar
  6. 6.
    Channabasavaiah, K., Holley, K., Tuggle, E.M.J.: Migrating to a service-oriented architecture. In: On demand operating environment solutions, IBM (2004)Google Scholar
  7. 7.
    Ciganek, A.P., Haines, M.N., Haseman, W.: Horizontal and Vertical Factors Influencing the Adoption of Web Services. In: Proceedings of the 39th Annual Hawaii International Conference on System Sciences HICSS 2006, p. 6 (2006)Google Scholar
  8. 8.
    Ciganek, A.P., Haines, M.N., Haseman, W.D.: Challenges of Adopting Web Services: Experiences from the Financial Industry. In: Proceedings of the 38th Hawaii International Conference on System Sciences (2005)Google Scholar
  9. 9.
    Erlanger, L.: Making SOA Work. In: InfoWorld, pp. 45–52 (2005)Google Scholar
  10. 10.
    Fricko, A.: SOAs Require Culture Change and Service Reuse. In: Business Communications Review, pp. 58–64 (2006)Google Scholar
  11. 11.
    Hagel, J.I., Brown, J.S.: Your Next IT Strategy. Harvard Business Review, 105–113 (2001)Google Scholar
  12. 12.
    Henningsson, S., Svensson, C., Vallen, L.: Mastering the integration chaos following frequent M&As: IS Integration with SOA Technology. In: Hawaii International Conference on System Sciences 2007, IEEE Computer Society, Big Island (2007)Google Scholar
  13. 13.
    Jarvenpaa, S.L., Ives, B.: Information technology and corporate strategy: a view from the top. Information Systems Research 1(4), 351–376 (1990)CrossRefGoogle Scholar
  14. 14.
    Lai, V.S., Guynes, J.L.: An assessment of the influence of organizational characteristics on information technology adoption decision: a discriminative approach. IEEE Transactions on Engineering Management 44(2), 146–157 (1997)CrossRefGoogle Scholar
  15. 15.
    Leavitt, N.: Are Web Services Finally Ready to Deliver? In: Computer, pp. 14–16 (2004)Google Scholar
  16. 16.
    Legner, C., Heutschi, R.: SOA Adoption in Practice-Findings from Early SOA Implementations. In: Österle, H., Schelp, J., Winter, R. (eds.) Proceedings of the 15th European Conference on Information Systems, St. Gallen, Switzerland, pp. 1643–1654 (2007)Google Scholar
  17. 17.
    Luthria, H., Rabhi, F., Briers, M.: Investigating the Potential of Service Oriented Architectures to Realize Dynamic Capabilities. In: Asia-Pacific Service Computing Conference, The 2nd IEEE (APSCC 2007). IEEE Computer Society, Tsukuba (2007)Google Scholar
  18. 18.
    Luthria, H., Rabhi, F.A.: Service Oriented Computing in Practice - An Agenda for Research into the Factors Influencing the Organizational Adoption of Service Oriented Architectures. Journal of Theoretical and Applied Electronic Commerce Research (2008)Google Scholar
  19. 19.
    Margaria, T., Steffen, B.: Service Engineering: Linking Business and IT. In: Computer (IEEE), p. 45 (2006)Google Scholar
  20. 20.
    McFarlan, F.W.: Information technology changes the way you compete. Harvard Business Review 62(3), 98–103 (1984)Google Scholar
  21. 21.
    Mukhi, N.K., Konuru, R., Curbera, F.: Cooperative Middleware Specialization for Service Oriented Architectures. In: International World Wide Web Conference. ACM, New York (2004)Google Scholar
  22. 22.
    Murray, W.: Implications of SOA on business strategy and organizational design. The SOA Magazine volume (2007)Google Scholar
  23. 23.
    Papazoglou, M.P., et al.: Service Oriented Computing Research Roadmap. In: Dagstuhl Seminar (2006)Google Scholar
  24. 24.
    Quocirca SOA: Substance or Hype? Quocirca Ltd. (2005)Google Scholar
  25. 25.
    Ricadela, A.: The Dark Side of SOA. In: Information Week, pp. 54–58 (2006)Google Scholar
  26. 26.
    Saunders, S., et al.: The software quality challenges of service oriented architectures in e-commerce. Software Quality Journal 14(1), 65–75 (2006)MathSciNetCrossRefGoogle Scholar
  27. 27.
    Sprott, D.: Service-Oriented Architecture: An Introduction for Managers. CBDI Journal (2004)Google Scholar
  28. 28.
    Stantchev, V., Malek, M.: Architectural translucency in service-oriented architectures. IEE Proceedings - Software 153(1), 31–37 (2006)CrossRefGoogle Scholar
  29. 29.
    Tsai, W.T.: Service-Oriented System Engineering: A New Paradigm. In: IEEE Workshop on Service-Oriented System Engineering (SOSE 2005). IEEE, Los Alamitos (2005)Google Scholar
  30. 30.
    Yoon, T., Carter, P.: Investigating the Antecedents and benefits of SOA Implementation: A Multi-Case Study Approach. In: Americas Conference on Information Systems (AMCIS). AIS Electronic Library, Colorado (2007)Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2008

Authors and Affiliations

  • Haresh Luthria
    • 1
  • Fethi Rabhi
    • 1
  1. 1.Information Systems, Technology & Management, The Australian School of BusinessThe University of New South WalesSydneyAustralia

Personalised recommendations