Information-Technology Investment Decisions: When Do Costs and Benefits in the Social Subsystem Matter?

Author List: Ryan, Sherry D.; Harrison, David A.; Schkade, Lawrence L.;
Journal of Management Information Systems, 2002, Volume 19, Issue 2, Page 85-127.
The inclusion of social subsystem costs and benefits in information technology (IT) investment choices has been a difficult problem for IT decision-makers. Past research has shown that although some organizations adequately and consistently consider social subsystem issues when making IT investment decisions, many do not. This demonstrates a discrepancy between prescriptive theory and descriptive evidence. Our study addresses this theory-practice disconnection by investigating which firms, and under what conditions IT investments are likely to follow or violate prescriptions. Data collected from a national sample of 200 firms shed light on the firm and situational factors that affect the consideration of social subsystem issues during the IT investment decision process. The amount of social subsystem disruption associated with the IT in question, the strategic relevance of the IT to the organization, and the firm's continuous-learning culture each have direct or interactive influences on the decision process. Specifically, they impact the consideration of social subsystem costs and benefits for IT investments. Organizational size and industry are unrelated to this facet of decision-making. Overall, the empirical results help us better understand (1) what kinds of IT decisions cause stronger evaluation of social subsystem costs and benefits, (2) what types of firms give the greatest consideration to these issues, and (3) which intangible social subsystem costs or benefits are seen as the most important.
Keywords: decision making processes;information technology investment decisions;intangible costs and benefits;sociotechnical systems
Algorithm:

List of Topics

#3 0.186 problems issues major involved legal future technological impact dealing efforts current lack challenges subsystem related highly present addressing likely recommendations
#8 0.153 decision making decisions decision-making makers use quality improve performance managers process better results time managerial task significantly help indicate maker
#271 0.101 technology investments investment information firm firms profitability value performance impact data higher evidence diversification industry payoff return findings decisions greater
#151 0.077 costs cost switching reduce transaction increase benefits time economic production transactions savings reduction impact services reduced affect expected optimal associated
#234 0.075 social networks influence presence interactions network media networking diffusion implications individuals people results exchange paper sites evidence self-disclosure important examine
#168 0.074 firms firm financial services firm's size examine new based result level including results industry important account does suggests characterize limited
#246 0.065 strategic benefits economic benefit potential systems technology long-term applications competitive company suggest additional companies industry operating costs difficult substantial total
#161 0.058 role relationship positively light important understanding related moderating frequency intensity play stronger shed contribution past considered maintenance effort effect specifically
#108 0.053 model research data results study using theoretical influence findings theory support implications test collected tested based empirical empirically context paper