TY - GEN
T1 - Effectiveness of strategic decision-making on IT investment
T2 - 43rd Annual Hawaii International Conference on System Sciences, HICSS-43
AU - Park, Jong Sung
AU - Lee, Jung Hoon
AU - Yang, Jung In
AU - Lee, Bong Gyu
PY - 2010
Y1 - 2010
N2 - Many companies have taken the recent step of setting up an independent decision-making system, often called an 'IT Investment Committee', in order to maximize the performance of their IT investments. However, merely organizing such a committee in itself might not ensure good investment performance, owing to conflicts of interest or discord among its members. In this study, it was reviewed which characteristics of members are required for IT Investment Committee to have effective decision-making, by setting up a hypothesis based on Bounded Rationality Model and Politics Model which have been widely adopted in the strategic decision-making area and then conducting a survey on 152 companies. We found that Procedural Rationality and Political Behavior have statistically significant impact on the effectiveness of strategic decision-making on IT investment. Furthermore, degree of shared knowledge between business members and IT members participating in decision-making process and degree of two types of heterogeneity among them lead to higher level of Procedural Rationality and Political Behavior. These findings have a number of practical and theoretical implications.
AB - Many companies have taken the recent step of setting up an independent decision-making system, often called an 'IT Investment Committee', in order to maximize the performance of their IT investments. However, merely organizing such a committee in itself might not ensure good investment performance, owing to conflicts of interest or discord among its members. In this study, it was reviewed which characteristics of members are required for IT Investment Committee to have effective decision-making, by setting up a hypothesis based on Bounded Rationality Model and Politics Model which have been widely adopted in the strategic decision-making area and then conducting a survey on 152 companies. We found that Procedural Rationality and Political Behavior have statistically significant impact on the effectiveness of strategic decision-making on IT investment. Furthermore, degree of shared knowledge between business members and IT members participating in decision-making process and degree of two types of heterogeneity among them lead to higher level of Procedural Rationality and Political Behavior. These findings have a number of practical and theoretical implications.
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U2 - 10.1109/HICSS.2010.169
DO - 10.1109/HICSS.2010.169
M3 - Conference contribution
AN - SCOPUS:77951758223
SN - 9780769538693
T3 - Proceedings of the Annual Hawaii International Conference on System Sciences
BT - Proceedings of the 43rd Annual Hawaii International Conference on System Sciences, HICSS-43
Y2 - 5 January 2010 through 8 January 2010
ER -