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Examining the antecedents and consequences of CIO strategic decision-making authority: An empirical study
journal contribution
posted on 2008-11-01, 00:00 authored by D S Preston, D Chen, Dorothy LeidnerDorothy LeidnerDespite 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. © 2008 Decision Sciences Institute.
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Decision SciencesVolume
39Issue
4Pagination
605 - 642Publisher DOI
ISSN
0011-7315eISSN
1540-5915Usage metrics
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No categories selectedKeywords
Social SciencesManagementBusiness & EconomicsChief Information OfficerInformation Systems LeadershipManagerial DiscretionPower and PoliticsStrategic Decision MakingStructural Equation Modelingand Survey ResearchINFORMATION-TECHNOLOGY CAPABILITYORGANIZATIONAL-CLIMATEPOWERFIRMSYSTEMSEMPOWERMENTCONTEXTPERCEPTIONS
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