What happens to organizations that chase the hottest information technologies? This study examines some of the important organizational impacts of the fashion phenomenon in IT. An IT fashion is a transitory collective belief that an information technology is new, efficient, and at the forefront of practice. Using data collected from published discourse and annual IT budgets of 109 large companies for a decade, I have found that firms whose names were associated with IT fashions in the press did not have higher performance, but they had better reputation and higher executive compensation in the near term. Companies investing in IT in fashion also had higher reputation and executive pay, but they had lower performance in the short term and then improved performance in the long term. These results support a fashion explanation for the middle phase diffusion of IT innovations, illustrating that following fashion can legitimize organizations and their leaders regardless of performance improvement. The findings also extend institutional theory from its usual focus on taken-for-granted practices to fashion as a novel source of social approval. This study suggests that practitioners balance between performance pressure and social approval when they confront whatever is hottest in IT.
In striving to learn about an information technology innovation, organizations draw on knowledge resources available in the community of diverse interests that convenes around that innovation. But even as such organizations learn about the innovation, so too does the larger community. Community learning takes place as its members reflect upon their learning and contribute their experiences, observations, and insights to the community's on-going discourse on the innovation. Community learning and organizational learning thus build upon one another in a reciprocal cycle over time, as the stock of interpretations, adoption rationales, implementation strategies, and utilization patterns is expanded and refined. We advance an overall model of this learning cycle, drawing on two community-level theories (management fashion and organizing vision), both of which complement the dominant emphases of the literature on IT innovation and learning. Relative to this cycle, we then empirically examine, in particular, the dependence of community learning on organizational learning. Sampling the public discourse on enterprise resource planning (ERP) over a 14-year period, we explore how different kinds of organizational actors can play different roles, at different times, in contributing different types of knowledge to an innovation's public discourse. The evidence suggests that research analysts and technology vendors took leadership early on in articulating the "know-what" (interpretation) and "know-why" (rationales) for ERP, while later on adopters came to dominate the discourse as its focus shifted to the "know-how" (strategies and capabilities). We conclude by identifying opportunities for further inquiry on and strategic management of community learning and its interactions with organizational learning.