Influence of Shadow IT on Innovation in Organizations

Complex Systems Informatics and Modeling Quarterly CSIMQ, Issue 8, Pages 68-80, September/October 2016

13 Pages Posted: 16 Mar 2017

See all articles by Mario Silic

Mario Silic

Swiss School of Business and Management (SSBM); University of St. Gallen - Institute of Information Management

Dario Silic

Zagreb School of Economics and Management

Goran Oblakovic

Zagreb School of Economics and Management

Date Written: September 2016

Abstract

Shadow IT is relatively new and emerging phenomenon which is bringing number of concerns and risks to the organizational security. Past literature has mostly explored the “negative” effects of the Shadow IT phenomenon, including, for example, the security aspect where Shadow systems are said to undermine the official systems and endanger organizational data flows. However, the question of how Shadow IT can contribute to leverage user’s innovation has not been adequately addressed. We used three methods to understand if Shadow IT can be an important source of innovation for firms: 1) Single case study with international firm that adopted Shadow IT; 2) Interviews with 15 IT executives and 3) Focus group using twitter as enabling tool to interact with 65 IT professionals. We offer a new perspective on how Shadow IT practices can leverage user’s innovation. The study offers novel insights on the role of Shadow users in the organizational innovation process and how they contribute to new innovations by using Shadow IT. Not only this user led innovation through Shadow IT brings positive outcomes for the employee, but it also reveals the path to follow for organizations to increase their innovation capabilities.

Keywords: Shadow IT, Software, Organizational IT, Shadow Systems, Information Security, Innovation

Suggested Citation

Silic, Mario and Silic, Dario and Oblakovic, Goran, Influence of Shadow IT on Innovation in Organizations (September 2016). Complex Systems Informatics and Modeling Quarterly CSIMQ, Issue 8, Pages 68-80, September/October 2016, Available at SSRN: https://ssrn.com/abstract=2932988

Mario Silic (Contact Author)

Swiss School of Business and Management (SSBM) ( email )

Avenue des Morgines 12
Geneva, 10000
Switzerland
9000 (Fax)

University of St. Gallen - Institute of Information Management ( email )

Langgasse 1
St. Gallen, 9008
Switzerland

Dario Silic

Zagreb School of Economics and Management ( email )

Jordanovac 110
Zagreb, 10000
Croatia

Goran Oblakovic

Zagreb School of Economics and Management ( email )

Jordanovac 110
Zagreb, 10000
Croatia

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