Examining the antecedents and consequences of CIO strategic decision-making authority: An empirical study

Decision Sciences

Volumn 39, Issue 4, 2008, Pages 605-642

  Preston, David S ^a   Chen, Daniel ^a   Leidner, Dorothy E ^b  

^a BAYLOR UNIVERSITY   (United States)

^b TEXAS CHRISTIAN UNIVERSITY   (United States)

Author keywords

Chief information officer; Information systems leadership; Managerial discretion; Power and politics; Servey research; Strategic decision making; Structural equation modeling

Indexed keywords

EID: 57649131237     PISSN: 00117315     EISSN: 15405915     Source Type: Journal    
DOI: 10.1111/j.1540-5915.2008.00206.x     Document Type: Article

References (99)

1. Applegate, L. M., & Elam, J. J. (1992). New information systems leaders: A changing role in a changing world. MIS Quarterly, 16 (4 469 490.
2. Argyris, C. (1998). Empowerment: The emperor's new clothes. Harvard Business Review, 76 (3 98 105.
3. Armstrong, C. P., & Sambamurthy, V. (1999). Information technology assimilation in firms: The influence of senior leadership and IT infrastructures. Information Systems Research, 10 (4 304 328.
4. Ashford, S. J., Rothbard, N. P., Piderit, S. K., & Dutton, J. E. (1998). Out on a limb: The role of context and impression management in issue selling. Administrative Science Quarterly, 43 (1 23 57.
5. Astley, W. G., & Sachdeva, P. S. (1984). Structural sources of intraorganizational power: A theoretical synthesis. Academy of Management Review, 9 (1 104 114.
6. Bharadwaj, A. S. (2000). A resource-based perspective on information technology capability and firm performance: An empirical investigation. MIS Quarterly, 24 (1 169 198.
7. Bowen, D. E., & Lawler, E. E. (1992). The empowerment of service workers: What, why, how, and when. Sloan Management Review, 33 (3 31 39.
8. Boynton, A. C., Zmud, R. W., & Jacobs, G. C. (1994). The influence of IT management practice on IT use in large organizations. MIS Quarterly, 18 (3 299 320.
9. Broadbent, M., & Kitzis, E. S. (2005). Interweaving business-driven IT strategy and execution: Four foundation factors. Ivey Business Journal, 69 (3 1 6.
10. Broadbent, M., & Kitzis, E. S. (2006). The new CIO leader. Boston : Harvard Business School Press.
11. Brynjolfsson, E., & Hitt, L. (1996). Paradox lost? Firm-level evidence on the returns to information systems spending. Management Science, 42 (4 541 558.
12. Buchholtz, A. K., Amason, A. C., & Rutherford, M. A. (1999). Beyond resources. Business & Society, 38 (2 167 187.
13. Byrd, T. A., Sambamurthy, V., & Zmud, R. W. (1995). An examination of IT planning in a large, diversified public organization. Decision Sciences, 26 (4 49 73.
14. Byrd, T. A., & Turner, D. B. (2001). An exploratory analysis of the value of the skills of IT personnel: Their relationship to IS infrastructure and competitive advantage. Decision Sciences, 32 (1 21 54.
15. Cappelli, P., & Neumark, D. (2004). External churning and internal flexibility: Evidence on the functional flexibility and core-periphery hypotheses. Industrial Relations, 43 (1 148 182.
16. Carpenter, M. A., & Golden, B. R. (1997). Managerial discretion: A study of cause and effect. Strategic Management Journal, 18 (3 187 206.
17. Carr, N. (2003). IT doesn't matter. Harvard Business Review, 81 (5 41 49.
18. Carr, N. (2004). Does IT matter? Information technology and the corrosion of competitive advantage. Boston, MA : Harvard Business School Press.
19. Carte, T. A., & Russell, C. J. (2003). In pursuit of moderation: Nine common errors and their solutions. MIS Quarterly, 27 (3 479 501.
20. Chan, Y., Sabherwal, R., & Thatcher, J. B. (2006). Antecedents and outcomes of strategic IS alignment: An empirical investigation. IEEE Transactions on Engineering Management, 53 (1 27 47.
21. Chatterjee, D., Richardson, V. J., & Zmud, R. W. (2001). Examining the shareholder wealth effects of announcements of newly created CIO positions. MIS Quarterly, 25 (1 43 70.
22. Child, J. (1972). Organizational structure, environment and performance: The role of strategic choice. Sociology, 6 (1 1 22.
23. Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In G. A. Marcoulides (Ed Modern methods for business research (pp. 295 336). Mahwah, NJ : Erlbaum.
24. Chin, W. W., Marcolin, B. L., & Newsted, P. R. (2003). A partial least squares latent variable modeling approach for measuring interaction effects: Results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study. Information Systems Research, 14 (2 189 217.
25. Collins, P. D., Ryan, L. V., & Matusik, S. (1999). Programmable automation and the locus of decision-making power. Journal of Management, 25 (1 29 53.
26. Daily, C. M., & Johnson, J. L. (1997). Sources of CEO power and firm financial performance: A longitudinal assessment. Journal of Management, 23 (2 97 117.
27. DeLone, W. H., & McLean, E. R. (1992). Information systems success: The quest for the dependent variable. Information Systems Research, 3 (1 60 95.
28. Dutton, J. E., Ashford, S. J., Lawrence, K. A., & Miner-Rubino, K. (2002). Red light, green light: Making sense of the organizational context for issue selling. Organization Science, 13 (4 355 369.
29. Earl, M. J., & Feeny, D. F. (1994). Is your CIO adding value? Sloan Management Review, 35 (3 11 20.
30. Eisenhardt, K. M., & Zbaracki, M. J. (1992). Strategic decision making. Strategic Management Journal, 13 (S2 17 37.
31. Enns, H. G., McFarlin, D. B., & Huff, S. L. (2007). How CIOs can effectively use influence behaviors. MIS Quarterly Executive, 6 (1 29 38.
32. Epstein, M. J., & Rejc, A. (2005). How to measure and improve the value of IT. Strategic Finance, 87 (4 35 41.
33. Ferratt, T. W., Agarwal, R., Moore, J. E., & Brown, C. V. (1999). Observations from "The Front": IT executives on practices to recruit and retain information technology professionals. Proceedings of the 1999 ACM SIGCPR Conference (pp. 102 112). New York : Association for Computing Machinery.
34. Finkelstein, S. (1992). Power in top management teams: Dimensions, measurement, and validation. Academy of Management Journal, 35 (3 505 538.
35. Finkelstein, S., & Boyd, B. K. (1998). How much does the CEO matter? The role of managerial discretion in the setting of CEO compensation. Academy of Management Journal, 41 (2 179 200.
36. Finkelstein, S., & Hambrick, D. C. (1990). Top-management-team tenure and organizational outcomes: The moderating role of managerial discretion. Administrative Science Quarterly, 35 (3 484 503.
37. Finkelstein, S., & Hambrick, D. C. (1996). Strategic leadership: Top executives and their effects on organizations. St. Paul, MN : West Publishing.
38. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equations models with unobservable variables and measurement error. Journal of Marketing Research, 18 (1 39 50.
39. Forrester, R. (2000). Empowerment: Rejuvenating a potent idea. Academy of Management Executive, 14 (3 67 80.
40. Frese, M., Kring, W., Soose, A., & Zempel, J. (1996). Personal initiative at work: Differences between East and West Germany. Academy of Management Journal, 39 (1 37 63.
41. Goodhue, D., Lewis, W., & Thompson, R. (2007) Statistical power in analyzing interaction effects: Questioning the advantage of PLS with product indicators. Information Systems Research, 18 (2 211 227.
42. Grojean, M. W., Resick, C. J., Dickson, M. W., & Smith, D. B. (2004). Leaders, values, and organizational climate: Examining leadership strategies for establishing an organizational climate regarding ethics. Journal of Business Ethics, 55 (3 223 241.
43. Grover, V., & Jeong, S. R. (1993). The chief information officer: A study of managerial roles. Journal of Management Information Systems, 10 (2 107 131.
44. Gupta, Y. P. (1991). The chief executive officer and the chief information officer: The strategic partnership. Journal of Information Technology, 6 (3 128 139.
45. Hambrick, D. C. (1981). Environment, strategy, and power within top management teams. Administrative Sciences Quarterly, 26 (2 253 276.
46. Hambrick, D. C., & Abrahamson, E. (1995). Assessing managerial discretion across industries: A multimethod approach. Academy of Management Journal, 38 (5 1427 1444.
47. Hambrick, D. C., & Finkelstein, S. (1987). Managerial discretion: A bridge between polar views of organizational outcomes. Research in Organizational Behavior, 9, 369 407.
48. Hambrick, D. C., & Mason, P. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9 (1 193 206.
49. James, L. R., Demaree, R. G., & Wolf, G. (1984). Estimating within-group interrater reliability with and without response bias. Journal of Applied Psychology, 69 (1 85 98.
50. Jarvenpaa, S. L., & Ives, B. (1991). Executive involvement and participation in the management of information technology. MIS Quarterly, 15 (2 205 227.
51. Jarvis, C. B., Mackenzie, S. B., Scott, B., Podsakoff, P. M., Mick, D. G., & Bearden, W. O. (2003). A critical review of construct indicators and measurement model misspecification in marketing and consumer research. Journal of Consumer Research, 30 (2 199 219.
52. Johnson, A. M., & Lederer, A. L. (2005). The effect of communication frequency and channel richness on the convergence between chief executive and chief information officers. Journal of Management Information Systems, 22 (2 227 252.
53. Kaarst-Brown, M. L. (2005). Understanding an organization's view of the CIO: The role of assumptions about IT. MIS Quarterly Executive, 4 (2 287 301.
54. Karahanna, E., & Chen, D. Q. (2006). Give your CIO time: An empirical analysis of CIO role effectiveness and firm performance. Working paper, University of Georgia, Athens, GA.
55. Karahanna, E., & Watson, R. T. (2006). Information systems leadership. IEEE Transactions on Engineering Management, 53 (2 171 176.
56. Karimi, J., Gupta, Y. P., & Somers, T. (1996). The congruence between a firm's competitive strategy and information technology leader's rank and role. Journal of Management Information Systems, 13 (1 63 89.
57. Kearns, G. S., & Lederer, A. L. (2003). A resource-based view of strategic IT alignment: How knowledge sharing creates competitive advantage. Decision Sciences, 34 (1 1 29.
58. Key, S. (2002). Managerial discretion: An analysis of individual ethical intentions. Journal of Managerial Issues, 14 (2 218 233.
59. Lefebvre, L. A., Mason, R., & Lefebvre, E. (1997). The influence prism in SMEs: The power of CEO's perceptions on technology policy and its organizational impacts. Management Science, 43 (6 856 878.
60. Leidner, D. E., & Mackay, J. M. (2007). How incoming CIOs transition into their new jobs. MIS Quarterly Executive, 6 (1 17 28.
61. Luftman, J. N., Papp, R., & Brier, T. (1999). Enablers and inhibitors of business-IT alignment. Communications of the AIS, 1 (11 1 32.
62. March, J. G. (1962). The business firm as a political coalition, The Journal of Politics, 24 (4 662 678.
63. Martins, L. L., & Kambil A. (1999). Looking back and looking ahead: Effects of prior success on managers' interpretations of new information technologies. Academy of Management Journal, 42 (6 652 661.
64. Mata, F. J., Fuerst, W. L., & Barney, J. B. (1995). Information technology and sustained competitive advantage: A resource-based analysis. MIS Quarterly, 19 (4 487 505.
65. Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Information technology and organizational performance: An integrative model of IT business value. MIS Quarterly, 28 (2 283 322.
66. Mintzberg, H. (1983). Power in and around organizations. Englewood Cliffs, NJ : Prentice Hall.
67. Mintzberg, H., Raisinghani, D., & Theoret, A. (1976). The structure of unstructured decision processes. Administrative Science Quarterly, 21 (2 246 275.
68. Moore, G. C., & Benbasat, I. (1991). Development of an instrument to measure the perceptions of adopting an information technology innovation. Information Systems Research, 2 (3 192 223.
69. Morrison, E. W., & Phelps, C. C. (1999). Taking charge at work: Extrarole efforts to initiate workplace change. Academy of Management Journal, 42 (4 403 419.
70. Neal, A., West, M. A., & Patterson, M. G. (2005). Do organizational climate and competitive strategy moderate the relationship between human resource management and productivity? Journal of Management, 31 (4 492 512.
71. Ocasio, W. (1994). Political dynamics and the circulation of power: CEO succession in U.S. industrial corporations, 1960-1990. Administrative Sciences Quarterly, 39 (2 285 312.
72. Parker, S. K., Williams, H. M., & Turner, N. (2006). Modeling the antecedents of proactive behavior at work. Journal of Applied Psychology, 91 (3 636 652.
73. Patterson, M. G., West, M. A., Shackleton, V. J., Dawson, J. F., Lawthom, R., Maitlis, S., Robinson, D. L., & Wallace, A. M. (2005). Validating the organizational climate measure: Links to managerial practices, productivity and innovation. Journal of Organizational Behavior, 26 (4 379 408.
74. Pearce, J. A., & Zahra, S. A. (1991). The relative power of CEOs and boards of directors: Associations with corporate performance. Strategic Management Journal, 12 (2 135 153.
75. Pfeffer, J. (1981). Power in organizations. Marshfield, MA : Pitman Publishing.
76. Premkumar, G., & King, W. R. (1992). An empirical assessment of information systems planning and the role of information systems in organizations. Journal of Management Information Systems, 9 (2 99 125.
77. Raghunathan, B., & Raghunathan, T. S. (1989). Relationship of the rank of information systems executive to the organizational role and planning dimensions of information systems. Journal of Management Information Systems, 6 (1 111 112.
78. Rajagopalan, N., Rasheed, A., & Datta, D. (1993). Strategic decision processes: Critical review and future directions. Journal of Management, 19 (2 349 384.
79. Ranganathan, C., & Sethi, V. (2002). Rationality in strategic information technology decisions: The impact of shared domain knowledge and IT unit structure. Decision Sciences, 33 (1 59 86.
80. Rockart, J. F., Earl, M. J., & Ross, J. W. (1996). Eight imperatives for the new IT organization. Sloan Management Review, 38 (1 43 56.
81. Sabherwal, R. (1999). The relationship between information system planning sophistication and information system success: An empirical assessment. Decision Sciences, 30 (1 137 167.
82. Sabherwal, R., & King, W. R. (1992). Decision processes for developing strategic applications of information systems: A contingency approach. Decision Sciences, 23 (4 917 943.
83. Sambamurthy, V., Bharadwaj, A., & Grover, V. (2003). Shaping agility through digital options: Reconceptualizing the role of information technology in contemporary firms. MIS Quarterly, 27 (2 237 263.
84. Santhanam, R., & Hartono, E. (2003). Issues in linking information technology capability to firm performance. MIS Quarterly, 27 (1 125 165.
85. Saunders, C. S., & Jones J. W. (1992). Measuring performance of the information systems function. Journal of Management Information Systems, 8 (4 63 83.
86. Schneider, B. (1975). Organizational climates: An essay. Personnel Psychology, 28 (4 447 479.
87. Sharma, S. (2000). Managerial interpretations and organizational context as predictors of corporate choice of environmental strategy. Academy of Management Journal, 43 (4 681 697.
88. Shen, W., & Cho, T. S. (2005). Exploring involuntary executive turnover through a managerial discretion framework. Academy of Management Review, 30 (4 843 854.
89. Smaltz, D. H., Sambamurthy, V., & Agarwal, R. (2006). The antecedents of CIO role effectiveness in organizations: An empirical study in the healthcare sector. IEEE Transactions on Engineering Management, 53 (2 207 222.
90. Smith, G. S. (2006). Straight to the top: Becoming a world class CIO. Hoboken, NJ : Wiley.
91. Spreitzer, G. M. (1996). Social structural characteristics of psychological empowerment, Academy of Management Journal, 39 (2 483 504.
92. Stephens, C. S., Ledbetter, W. N., Mitra, A., & Ford, F. N. (1992). Executive or functional manager? The nature of the CIO's job. MIS Quarterly, 16 (4 449 467.
93. Tushman, M. L., & Romanelli, E. (1983). Uncertainty, social location and influence in decision making: A sociometric analysis. Management Science, 29 (1 12 23.
94. Waldman, D. A., Ramirez, G. G., Gabriel, G., House R. J., & Puranam, P. (2001). Does leadership matter? CEO leadership attributes and profitability under conditions of perceived environmental uncertainty. Academy of Management Journal, 44 (1 134 143.
95. Weiss, J. W., & Anderson, D. Jr. 2004). CIOs and IT professionals as change agents, risk and stakeholder managers: A field study. Engineering Management Journal, 16 (2 13 18.
96. Westerman, G., & Weill, P. (2004). What are the key capabilities of effective CIOs Boston : Center for Information Systems Research, MIT Sloan.
97. Yetton, P., & Bottger, P. (1982). Individual versus group problem-solving: An empirical test of a best member strategy. Organizational Behavior and Human Performance, 29 (3 307 321.
98. Yukl, G. (2002). Leadership in organizations. Upper Saddle River, NJ : Prentice Hall.
99. Zhu, K., & Weyant, J. P. (2003). Strategic decisions of new technology adoption under asymmetric information: A game-theoretic model. Decision Sciences, 34 (4 643 667.