Key Organizational Theories in IS: Direction of Research Information systems (IS) research is among the most incorporative branches of science (Wade & Hulland, 2004). In other words, it tends to absorb the theoretical foundations and implications of other disciplines, including management. Various organizational theories can be applied to IS as well. The direction of this level of IS research can be described as the development of new IS perspectives and principles that incorporate various aspects of organizational life (Ravichandran, & Rai, 2004). Given the dependence of modern organizations on IS, this direction of research is of vast importance as it ensures more effective IS integration. Several examples of organizational theories in IS will be discussed in this paper, including the resource-based view, institutional theory, organizational changes theory, and some other relevant approaches. Key Theories for Organizational-Level Phenomena in IS Research One of the major organizational theories that received prominence nowadays is the resource-based view (RBV) or theory (Cragg, Caldeira & Ward, 2011). It was first proposed for usage in the field of strategic management in 1992, and it has been applied in the context of IS occasionally (Wade & Hulland, 2004). RBV defines a number of resources, the right set and allocation of which can ensure the firm’s competitiveness. The competitive set depends on the industry as well as other specific features (to the point of the possibility of individual customization for a single organization). The terminology of RBV has been somewhat vague, especially in relation to the major term “resource”. Wade and Hulland (2004) define resources as tangible and intangible assets and primarily intangible capabilities. For IS research, RBV offers the possibility of relating various types of IS to management strategy by determining their value for it. By providing this information, RBV also offers the ground for comparison of IS with each other and different strategic elements. The major disadvantage of such integration consists in the fact that IS are relatively unlikely to contribute to the competitive advantage directly. The indirect impact on competitive advantage is relatively underdeveloped within the theory. Liang, Saraf, Hu, and Xue (2007) describe another approach, the institutional theory. It emphasizes the strife for legitimacy in an organizational environment which makes the organization vulnerable to external influences (political and economical as well as that of other companies, and so on). The theory is perfectly applicable to IS: for example, the development of information security policies is most often caused by governmental policies, and in the terms of the adoption of various IT, the mimetic actions of organizations have been noted. The special feature of this theory consists in the fact that it explains the organization-level phenomena from the point of view of external forces, unlike most other approaches that focus on internal ones. Pavlou, Liang, and Xue (2007) dwell on the principal-agent perspective they derive from the agency theory. The agency approach presupposes regarding the relationship between b