Moral Hazard, Ethical Considerations, and the Decision to Implement an Information System.

Author List: Tuttle, Brad; Harrell, Adrian; Harrison, Paul;
Journal of Management Information Systems, 1997, Volume 13, Issue 4, Page 7/27/2017.
A decision-making study was conducted to examine the effects of moral hazard on information systems (IS) professionals' decisions whether or not to implement a system with quality problems. Moral hazard was defined as an incentive to act in one's self-interest in conflict with the organization's overall goals while being able to hide those actions through privately held information. Highly experienced IS professionals provided responses to a hypothetical decision case that revealed a tendency to implement a project with quality problems in a moral hazard situation. Their decisions, however, were strongly influenced by ethical considerations. These findings suggest that key economic constructs, such as moral hazard, apply to system implementation contexts. They also suggest that organizations can significantly moderate self-interested behavior by fostering an ethical climate.
Keywords: agency theory; computer ethics; incentives; information system implementation; information system quality; moral hazard.
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#156 0.235 ethical ethics ambidexterity responsibility codes moral judgments code behavior professional act abuse judgment professionals morality effect issues unethical intentions personal
#70 0.174 contract contracts incentives incentive outsourcing hazard moral contracting agency contractual asymmetry incomplete set cost client parties examine effort structures double
#127 0.120 systems information research theory implications practice discussed findings field paper practitioners role general important key grounded researchers domain new identified
#225 0.119 information environment provide analysis paper overall better relationships outcomes increasingly useful valuable available increasing greater regarding levels decisions viewed relative
#8 0.108 decision making decisions decision-making makers use quality improve performance managers process better results time managerial task significantly help indicate maker
#108 0.075 model research data results study using theoretical influence findings theory support implications test collected tested based empirical empirically context paper
#185 0.067 change organizational implementation case study changes management organizations technology organization analysis successful success equilibrium radical efforts initiatives managing resistance individuals