New IT Implementations: Learning from Past Experiences

48 Pages Posted: 14 Feb 2016

See all articles by Nilesh Saraf

Nilesh Saraf

Simon Fraser University (SFU) - Beedie School of Business

Srabana Dasgupta

Simon Fraser University (SFU)

Vallabh Sambamurthy

Michigan State University - Department of Accounting & Information Systems

Date Written: February 12, 2016

Abstract

This research focuses on the experience-related antecedents of enterprise IT innovation, in particular, the implementation of new IT systems. We draw from the firm learning literature to propose four dimensions of IT implementation (ITI) experience — frequency, breadth, valence and recency — and propose hypotheses linking these four dimensions to the likelihood of future ITIs. Drawing from human capital theory, we also examine whether the effect of frequency and breadth of ITI experience on future implementations is more pronounced or subdued because of turnover of knowledge workers.

We investigate our hypotheses using a rich panel dataset of 1,466 workplaces collected through a longitudinal establishment level survey by Statistics Canada. First, the most intuitive measure of IT implementation experience, frequency, is found to have a detrimental effect on future IT implementation propensity. Functional breadth, which captures the ‘footprint’ of previous implementations in terms of the heterogeneity of employee categories, on the other hand, has a positive impact. Next, managers’ perception of the performance impact of a most recent IT implementation (valence) is significant and positive and, the more recent is the previous implementation, the greater is the effect of valence. Interestingly, employee turnover of knowledge workers, per se, increases ITI likelihood, but weakens the impact of ITI frequency and breadth.

Keywords: IT implementations, organizational learning, performance feedback, learning-by-doing, organizational innovations

JEL Classification: O14, O32

Suggested Citation

Saraf, Nilesh and Dasgupta, Srabana and Sambamurthy, Vallabhajosyula, New IT Implementations: Learning from Past Experiences (February 12, 2016). Available at SSRN: https://ssrn.com/abstract=2731836 or http://dx.doi.org/10.2139/ssrn.2731836

Nilesh Saraf (Contact Author)

Simon Fraser University (SFU) - Beedie School of Business ( email )

8888 University Drive
Burnaby, British Columbia V5A 1S6
Canada

Srabana Dasgupta

Simon Fraser University (SFU) ( email )

8888 University Drive
Burnaby, British Columbia V5A 1S6
Canada

Vallabhajosyula Sambamurthy

Michigan State University - Department of Accounting & Information Systems ( email )

270 North Business Complex
East Lansing, MI 48824-1034
United States

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