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

The paradigm of service-oriented computing (SOC) has emerged as an approach to provide flexibility and agility, not just in systems development but also in business process management. This modular approach to defining business flows as technology independent services has gained unanimous popularity among end-users and technology vendors alike. Although there is a significant amount of research ongoing on the technology implementations of service oriented architectures (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 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.