The Impact of Senior IT Executives on IT Capability

40 Pages Posted: 11 Jan 2012

See all articles by Jee-Hae Lim

Jee-Hae Lim

University of Hawaii, Manoa

Theophanis C. Stratopoulos

University of Waterloo - School of Accounting and Finance

Tony S. Wirjanto

University of Waterloo - School of Accounting and Finance; University of Waterloo, Department of Statistics & Actuarial Science

Date Written: January 11, 2012

Abstract

This study introduces a causality-based framework of antecedents and consequences in order to examine the positive reciprocity between senior IT executives (sITes) and IT capable firms. More specifically we propose that: 1. There is a positive association between accrued sources of managerial power of sITes, such as structural and expert power, and a firm's ability to develop superior IT capability. 2. Firms that achieve such superiority are more likely to signal their appreciation and reward (promote) their sITes. 3. If sITes value this reward, they are more likely to stay longer with their firm. There is a positive association between continuity of an already successful IT leadership and a firm’s ability to sustain its IT superiority. Results based on panel data of 1326 large US firms from a wide spectrum of industries over a 13-year period (1997-2009) support our propositions. Empirical evidence validates our position that firms that want to achieve and sustain IT superiority need to create an organizational climate of positive reciprocity. Such an organization climate can only be developed over time and there is no short cut that competitors can take in order to replicate it

Keywords: CIO, IT capability, Sustainable IT capability, Business Value of IT, Structural Power

Suggested Citation

Lim, Jee-Hae and Stratopoulos, Theophanis C. and Wirjanto, Tony S., The Impact of Senior IT Executives on IT Capability (January 11, 2012). CAAA Annual Conference 2012. Available at SSRN: https://ssrn.com/abstract=1983428 or http://dx.doi.org/10.2139/ssrn.1983428

Jee-Hae Lim (Contact Author)

University of Hawaii, Manoa ( email )

2404 Maile Way
Honolulu, HI Honolulu 96822
United States
(808) 956-8503 (Phone)
(808) 956-9888 (Fax)

HOME PAGE: http://shidler.hawaii.edu/directory/jee-hae-lim/soa

Theophanis C. Stratopoulos

University of Waterloo - School of Accounting and Finance ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1 N2L 3G1
Canada
519-888-4567 x35943 (Phone)

Tony S. Wirjanto

University of Waterloo - School of Accounting and Finance ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1
Canada
519-888-4567 x35210 (Phone)

HOME PAGE: http://https://uwaterloo.ca/statistics-and-actuarial-science/people-profiles/tony-wirjanto

University of Waterloo, Department of Statistics & Actuarial Science ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1
Canada
519-888-4567 x35210 (Phone)
519-746-1875 (Fax)

HOME PAGE: http://math.uwaterloo.ca/statistics-and-actuarial-science/people-profiles/tony-wirjanto

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