ABSTRACT

Prior research has argued, and empirically shown, that one of the primary objectives of information systems (IS) planning is the alignment between business and IS strategies. Moreover, lack of shared knowledge among business and IS executives is considered a major inhibitor of IS planning. However, the role of knowledge management (KM) processes in IS planning, and in aligning business and IS strategies, has not been examined. This chapter seeks to address this gap in the prior literature by providing a knowledge-based view of IS planning. More specifically, it focuses on five KM processes (direction, internalization, exchange, combination, and socialization) to examine their effects on specific domain knowledge and shared knowledge, and alignment. The KM processes may be classified into three types: knowledge substitution, which includes direction; knowledge transfer, which includes exchange and internalization; and knowledge synthesis, which includes socialization and combination. We further argue that knowledge substitution, transfer, and synthesis processes have little, moderate, and considerable effects, respectively, on shared knowledge. Prior literature on KM and IS planning is used to develop some initial research propositions. Three case studies provide further insights into IS planning, and help develop a model of the knowledge-based view of IS planning. Some implications of this emergent model for future research and practice are examined.