Examining the Antecedents and Consequences of CIO Strategic Decision‐Making Authority: An Empirical Study*

Despite the strategic importance of information technology (IT) to contemporary firms, chief information officers (CIO) often still have varying degrees of strategic decision‐making authority. In this study, we apply the theory of managerial discretion to define CIO strategic decision‐making authority and argue that the CIO's level of strategic decision‐making authority directly influences IT's contribution to organization performance. We also draw on the power and politics perspective in the strategic decision‐making literature to identify the direct antecedents to the CIO's strategic decision‐making authority. A theoretical model is presented and empirically tested using survey data collected from a cross‐industry sample of 174 matched pairs of CIOs and top business executives through structural equation modeling. The results suggest that organizational climate, organizational support for IT, the CIO's structural power, the CIO's level of strategic effectiveness, and a strong partnership between the CIO and top management team directly influence the CIO's level of strategic decision‐making authority within the organization. The results also suggest that the CIO's strategic decision‐making authority in the organization directly influences the contribution of IT to firm performance and that effective CIOs have a greater influence on IT's contribution when provided with strategic decision‐making authority.     

The Effect of Board of Directors’ IT Awareness on CIO Compensation and Firm Performance

Chief information officers (CIOs) play increasingly strategic roles in firms in this competitive global economy, which is now largely powered by information technology (IT). However, research has shown a lack of board of directors’ oversight on CIO‐ and IT‐related issues. Drawing on agency, resource dependence, and alignment theories, we investigate the effect of board of directors’ IT awareness on CIO compensation structure and firm performance. We conduct cross‐sectional time series analyses of data collected from various sources. Our study underlines three important findings. First, we show that some commonly known executive compensation determinants, such as individual characteristics and governance structure, do not have significant effects on CIO compensation structure. Second, with regard to CIO compensation structure, firms respond to increasing information asymmetry differently according to the level of IT awareness of their boards. Finally, firms perform better when their boards have higher levels of IT awareness, and this positive effect of IT awareness is considerably larger in IT intensive industries. Overall, our study provides empirical support for the important role of boards’ IT awareness in shaping CIO compensation and improving firm performance. Our results suggest that boards with functional area knowledge—or higher IT awareness in this case—can more effectively monitor and better incentivize executives, and consequently lead to better firm performance.     

IT Governance Characteristics,Electronic Medical Records Sophistication,and Financial Performance in U.S. Hospitals: An Empirical Investigation

As a result of a recent federal government mandate, an increasing number of hospitals have decided to adopt electronic medical record (EMR) systems. This initiative is expected to lead toward more efficient and higher quality health care; however, little is known about governance characteristics and organizational performance for EMR adopters. Our goal is to inform theory and practice by examining hospitals with a sophisticated EMR and comparing those hospitals to similar hospitals (with a less sophisticated EMR) to understand the association between information technology (IT) governance characteristics and the implications on financial performance. Leveraging elements of the upper echelon theory, we posit that hospitals in which the chief information officer (CIO) reports to the chief executive officer, CIO turnover is low, and an IT steering committee is present are more likely to have a sophisticated EMR. We argue that EMR sophistication leads to improved financial performance. Our results underscore the importance of continuity in the CIO position on successful EMR implementations. Results also show that hospital size and financial performance are strongly associated with EMR sophistication. In addition, we find that a sophisticated EMR appears to be a fundamental element in improving hospitals’ revenue cycle management. Moreover, we find that hospitals with a sophisticated EMR appear to be more profitable. Finally, we observe that total payroll expense adjusted by total discharges drops among the sophisticated hospitals, potentially due to an increase in employee productivity. These insights can serve as a basis for tempering expectations relative to the financial impact of EMR adoption.     

Chief Executive Officer Behavior: The Catalyst for Strategic Alignment

Organizations facing the need for significant change must determine both adirection for change and a means to realize the strategy. Implementing astrategy for change is dependent upon aligning organizational parametersproperly at the system level: structure, culture, training and development,recruitment and hiring, resource allocation, leadership, information systems,reward systems, coordination mechanisms, and control systems. The chiefexecutive officer must be the catalyst for strategic alignment. Four clustersof behavior are particularly important for the chief executive officer toexhibit in implementing strategic change: Communication, StrategicInteraction, Resource Utilization, and Leadership. Specific behaviors withinthese clusters are identified. The chief executive officer has an importantrole to play as the catalyst for strategic alignment, but the ultimate purposeof that role is to make it possible for the organization to see itself as abroader community responsible for the long-term success of the organization.     

A conceptual model for the process of IT innovation adoption in organizations

In this paper, we develop a conceptual model for IT innovation adoption process in organizations. The model utilizes Diffusion of Innovation (DOI) theory, Theory of Reasoned Action (TRA), Technology Acceptance Model (TAM), Theory of Planned Behaviour (TPB) and a framework that contains characteristics of innovation, organization, environment, chief executive officer (CEO) and user acceptance. The model presents IT adoption as a sequence of stages, progressing from initiation to adoption-decision to implementation. The study presents a model with an interactive process perspective which considers organizational level analysis until acquisition of technology and individual level analysis for the user acceptance of IT.     

A Multi‐level Dialectical–Paradox Lens for Top Management Team Strategic Decision‐Making in a Corporate Venture

This paper aims to critique the process of corporate‐owned, high‐tech start‐up strategizing through an inductive, longitudinal, case study of ‘UK‐Research‐Tech’. Insights are given through the combined ‘dialectical–paradox’ concept, thereby focusing on where ‘dialectic’ and ‘paradox’ theorizing overlap. This linked iterative, ‘dialogical–dialectic’ research approach also reflects chief executive officer/top management team (CEO/TMT) start‐up dynamics over time. These foci fill important gaps that impede better understanding of dialectical, dialogical and paradoxical forces within strategic decision‐making. As an interpretative tool, they illuminate CEO/TMT strategizing and changing interrelationships affected by broader, volatile, techno‐economic contexts and parent‐company influences on ventures. In this case study, it was found that the CEO's relatively autocratic, parent‐framed approach combined with TMT members' contradictory reactions to create ‘dialectical–paradox’ oppositional forces, eventually only resolved through ‘eleventh hour’ business strategy changes to rescue the venture. This research contributes to more nuanced understandings of corporate‐constrained ventures during early business development from start‐up strategic decisions at parent‐company level to subsequent conditions of more independent dynamic equilibrium. The ‘dialectical–paradox’ conceptual lens contributes an innovative critique of processes affecting strategic decision‐making dynamics. Another important contribution is the empirically inspired conceptual model, developed for use both to guide subsequent case‐study research analyses and as a reflective tool for CEO/TMT strategic decision‐making, especially within corporate‐inspired start‐ups.     

Environmental Factors,Managerial Processes,and Information Technology Investment Strategies

Although significant research attention has been directed at understanding the value of information technology (IT) investments for firms, very little attention has been paid to understand the IT investment behavior of firms. This article seeks to fill this void. We introduce the concept of IT investment strategy, defined by dimensions of intensity and proactiveness, to characterize the IT investment behavior of firms. Synthesizing the environmental deterministic and strategic choice perspectives of a firm's strategic decision making, we examine the effects of environmental factors, managerial processes, and the interplay between them on IT investment strategy. Specifically, we examine the impact of environmental factors such as industry clockspeed and information intensity on IT investment strategy. We also incorporate the strategic choice perspective to argue that managerial processes such as frequent chief executive officer—chief information officer communications and collective information systems planning play a critical role in shaping the firm's IT investment strategy. The empirical results show that the environmental variables are related to IT investment strategy. Besides, managerial processes serve as a means to understand the environment and thus moderate the relationships between the environmental variables and the various facets of IT investment strategy. The conceptualization of IT investment strategy and the focus on both environmental determinism and strategic choice should enrich our understanding of firms’ IT investing behavior.     

Exploring the Important Role of Organizational Factors in IT Business Value: Taking a Contingency Perspective on the Resource‐Based View

Despite the importance to researchers and practitioners of how information technology (IT) contributes to organizational performance, there is an ongoing debate about the extent of IT business value (ITBV) and how to measure ITBV. Recently, a number of researchers have applied resource‐based view (RBV) and contingency theory to investigating ITBV, with mixed results. Researchers have started to recognize that ITBV is closely associated with the synergies created from IT and a variety of complementary organizational factors, which might be an alternative way to explain these mixed results. Through a review of the literature, this paper assesses the current level of knowledge in ITBV research. It identifies that significant progress has been made in the research domain, but that in‐depth inquiry into ITBV is still needed. Based on RBV and contingency theory, a research framework has been developed. The framework suggests that firms might be able to gain significant performance improvements if IT resources are in alignment with additional organizational factors (i.e. organizational strategy, organizational process, organizational culture, organizational structure). The authors believe that this framework will be valuable in assisting researchers and practitioners in understanding the complex ITBV process.     

信息技术治理影响分销渠道敏捷的机理研究

如何获取供应链敏捷是信息系统和运作管理领域共同关注的热点和前沿问题。然而，当前研究主要关注供应链流程柔性或信息技术柔性对于供应链敏捷形成的作用，忽视了供应链环境中如何通过IT治理来实现供应链的分销渠道敏捷。基于IT治理和IT-商务战略匹配理论，本文构建了一个有调节的中介模型来实证研究IT治理、企业间电子商务战略匹配（知识匹配和运作匹配）和环境动荡性影响渠道敏捷的机理。通过对209家被调查企业的数据分析发现：IT治理通过知识匹配和运作匹配对渠道敏捷产生积极正向影响；环境动荡水平越高，运作匹配所发挥的中介作用越强；环境动荡性在IT治理和知识匹配之间存在负向调节作用，而在知识匹配和渠道敏捷之间存在正向调节作用。本文通过融合IT治理和IT-商务战略匹配理论，揭示了焦点企业和渠道伙伴的IT治理对渠道敏捷的作用机理，为供应链敏捷理论贡献新知。     

Competitive and Cooperative Positioning in Supply Chain Logistics Relationships*

Cooperative logistics relationships require the sharing of information, which must be enabled by the integration of disparate information systems across partners. In this article, we theorize business‐to‐business logistics relationships should be managed using cooperative and competitive postures. Based on data from 91 dyadic relationships using interorganizational information technology (IT), we find that performance gains accrue when parties share strategic information and customize IT; mutual trust enables IT customization and strategic‐information flows and equitable relationship‐specific investments positively impact IT customization, mutual trust, and performance. Among other scholarly and practical implications discussed, partners should compete on resources for IT customization and cooperate to share strategic information. Managers tend to think of relationships with firms as polar opposites and view them as entirely cooperative or entirely competitive. Our results support active balancing and understanding of both competitive and cooperative stances. Such an approach enables conditions for participation symmetry that yields greater performance gains.     

Endogenous Adaptation: The Effects of Technology Position and Planning Mode on IT‐Enabled Change*

The redesign of information technology (IT)‐enabled work processes often necessitates fundamental design changes to the intended work process, the IT platform hosting the work process, or both. Research suggests that such design changes often can be traced to earlier decisions involving endogenous adaptation or internal organizational change. Two such decisions are a firm's technology position and planning mode. This study examines the relationship between technology position and planning mode in predicting the magnitude of design change in process redesign projects. The conceptual frame applied in examining these relationships involves a synthesis of Miles and Snow's adaptive cycle with elements central to concurrent engineering. Our results indicate that the magnitude of design change is related to differences in technology position and planning mode. To effectively implement organizational change, firms must leverage their IT platform by carefully timing IT investments in accordance with their adopted technology position. Directing the trajectory of a firm's IT platform and deploying it so as to complement the firm's technology position reduces design uncertainty, promoting reengineering success.     

Extending the boundaries of strategic leadership research

This special issue was developed to extend the boundaries of strategic leadership research, to help bridge the micro-macro divide regarding theories of strategic leadership, and to bring together theories that have emerged independently. In this introductory editorial, we provide an overview of the research on strategic leadership and emphasize the need for further integration of research from the organizational behavior, industrial and organizational psychology, organizational economics, behavioral strategy, and strategic management fields. We then introduce and summarize the eleven articles we accepted for this special issue by classifying them into two broad themes: (a) Chief executive officer (CEO) characteristics and (b) the dynamics of interactions among the CEO, the top management team, and the board. Finally, we propose recent theoretical and empirical foci for advancing strategic leadership research and offer a research agenda for future research highlighting several important research questions related to extending the dialogue among scholars across the different leadership and strategy domains.     

我国企业信息化进程中应实行信息归口管理

企业信息化是现代企业管理的一场战略性变革,这种变革是复杂且持久的,作者认为,为了保证我国企业信息化建设的顺利进行,必须实行信息归口管理,建立相应稳定的组织机构,并确立一个具有企业级权威的领导CIO.本文对CIO及信息归口管理机构的组成、地位及作用作了进一步的阐述。     

Manufacturing strategies and financial performance—The effect of advanced information technology: CAD/CAM systems

Nowadays, the business environment is characterized by great uncertainty and variability. In this environment, information technology (IT) has proved to be an important strategic ingredient for the creation of competitive advantage. This role of IT has been widely accepted during the past few years [Feeny D. Creating and sustaining competitive advantage with IT. In: Earl M, editor. Information management the strategic direction. Oxford, 1990; Ives B. Wingtip Courriers, Southern Methodist University Case Study #SMY/MIS/90-01, Edwin L. Cox School of Business, Dallas, TX, January 1990].     

Top Management Team Members’ Decision Influence and Cooperative Behaviour: An Empirical Study in the Information Technology Industry

Organizational leadership is generally distributed between the chief executive officer (CEO) and the top management team (TMT) members. Building on this observation, we present an empirical investigation of the cues for CEOs to delegate decision‐making influence to particular TMT members. In the literature, explanations both based on expertise and driven by similarity are described. In this study, we reconcile both explanations by examining the moderating role of the TMT's level of ‘cooperative behaviour’ (collaboration and information exchange). We analyse when and in what circumstances TMT members’ expertise and similarity to the CEO regarding his/her functional background and/or locus‐of‐control predict their decision‐making influence. We postulate that TMT cooperative behaviour will advance the effect of expertise on TMT members’ decision influence but impede the effect of similarity to the CEO. Our hypotheses are tested on a data set of 135 TMT members from 32 Dutch and Belgian information technology firms. Overall, we find that our proposed research model is confirmed for technology‐oriented decisions. Furthermore, we draw exploratory conclusions about the effect of TMT cooperative behaviour on the systematic distribution of decision influence in TMTs.     

Realizing Benefits from Enterprise Resource Planning: Does Strategic Focus Matter?

A key driver of the recent wave of enterprise resource planning (ERP) implementations was the assumption that the integration of business information would provide firms with a competitive advantage, yet concrete business benefits have been uneven across adopting firms. A possible explanation is that although the resource‐based view holds that competitive advantage is derived from inimitable resources, ERP software has become a commodity. Socio‐technical theory suggests that internal organizational resources based on a foundation of ERP technology may be the true drivers of ERP benefits. A firm's strategic configuration is posited to influence the portfolio of organizational competencies available to leverage the benefits of integrated business information, and a number of hypotheses are developed based on the notion that firms with different strategic objectives will realize different operational benefits from the adoption of ERP systems. Survey data from North American manufacturing firms that have implemented ERP systems demonstrate that ERP adopters seeking operational performance improvements are likely to realize these benefits. On the other hand, those seeking external market and supply chain performance improvements must first establish a foundation of internal operational performance improvements before customer satisfaction and supply chain benefits can be realized.     

The impact of supply chain management practices on competitive advantage and organizational performance

Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance since competition is no longer between organizations, but among supply chains. This research conceptualizes and develops five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and postponement) and tests the relationships between SCM practices, competitive advantage, and organizational performance. Data for the study were collected from 196 organizations and the relationships proposed in the framework were tested using structural equation modeling. The results indicate that higher levels of SCM practice can lead to enhanced competitive advantage and improved organizational performance. Also, competitive advantage can have a direct, positive impact on organizational performance.     

An Exploratory Analysis of the Value of the Skills of IT Personnel: Their Relationship to IS Infrastructure and Competitive Advantage

Determining and assessing the requisite skills of information technology (IT) personnel have become critical as the value of IT has risen in modern organizations. In addition to technical skills traditionally expected of IT personnel, softer skills like managerial, business, and interpersonal skills have been increasingly cited in previous studies as mandatory for these employees. This paper uses a typology of IT personnel skills—technology management skills, business functional skills, interpersonal skills, and technical skills—and investigates their relationships to two information systems (IS) success variables, IS infrastructure flexibility and the competitive advantage provided by IS. The study investigates these relationships using the perceptions of chief information officers (CIOs) from mostly Fortune 2000 companies. The contributions of this study are: IT personnel skills do affect IS success, technical skills are viewed as the most important skill set in affecting IS infrastructure flexibility and competitive advantage, and modularity is viewed as more valuable to competitive advantage than integration. Several explanations are offered for the lack of positive relationships between the softer IT personnel skills and the dimensions of IS success used in this study.     

Knowledge Management Using Information Technology: Determinants of Short‐Term Impact on Firm Value*

The importance of knowledge management (KM) processes for organizational performance is now well recognized. Seeking to better understand the short‐term impact of KM on firm value, this article focuses on public announcements of information technology (IT)‐based KM efforts, and uses cumulative abnormal return (CAR) associated with an announcement as the dependent variable. This article employs a contingency approach, arguing that the KM announcement would have a positive short‐term impact on firm value in some conditions but not in others. Thus, it pursues the following research question: What are the effects of contextual factors on the CAR associated with the announcement of an IT‐based KM effort? Specific hypotheses are proposed based on information‐processing theory, organizational learning theory, the knowledge‐based theory of the firm, and the theory of knowledge creation. These hypotheses link CARs to alignment between industry innovativeness and the KM process, alignment between firm efficiency and the KM process, firm‐specific instability, and firm diversification. The empirical study utilizes secondary data on 89 KM announcements from 1995 to 2002. The results largely support the hypotheses. Overall, this article provides empirical support for the theory‐based arguments, and helps develop a contingency framework of the effectiveness of KM efforts.     

战略维度间的匹配关系与企业战略定位选择——基于战略群组理论视角

基于战略群组理论视角,分析了企业战略定位中不同战略维度的匹配问题。以境内外交易所上市的中国互联网企业为样本,选取移动互联业务比重和IT投入强度这两个关键战略维度,采用面板数据回归模型检验了研究假设。研究发现,当企业的移动互联业务比重和IT投入强度同时处于较高水平时,这一战略组合能为企业带来高绩效,是一种合理的战略位置;另一合理的战略位置则是较低的移动互联业务比重配以较低的IT投入强度,它也明显好于一者较高、另一者较低的战略组合。以上结果表明,战略定位的关键是实现不同战略维度决策之间的合理匹配,从战略组合的角度理解行业中的战略位置。研究结论不仅有助于理解移动互联市场的竞争战略与绩效,也验证了战略群组理论在战略定位研究中的重要意义,对战略组合的分析不可简化为对各战略维度的单独分析。