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Managing Strategic IT Investment Decisions: From IT Investment Intensity to Effectiveness

Managing Strategic IT Investment Decisions: From IT Investment Intensity to Effectiveness

Tzu-Chuan Chou, Robert Dyson, Philip L. Powell
Copyright: © 2000 |Volume: 13 |Issue: 4 |Pages: 10
ISSN: 1040-1628|EISSN: 1533-7979|ISSN: 1040-1628|EISBN13: 9781615200344|EISSN: 1533-7979|DOI: 10.4018/irmj.2000100104
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MLA

Chou, Tzu-Chuan, et al. "Managing Strategic IT Investment Decisions: From IT Investment Intensity to Effectiveness." IRMJ vol.13, no.4 2000: pp.34-43. http://doi.org/10.4018/irmj.2000100104

APA

Chou, T., Dyson, R., & Powell, P. L. (2000). Managing Strategic IT Investment Decisions: From IT Investment Intensity to Effectiveness. Information Resources Management Journal (IRMJ), 13(4), 34-43. http://doi.org/10.4018/irmj.2000100104

Chicago

Chou, Tzu-Chuan, Robert Dyson, and Philip L. Powell. "Managing Strategic IT Investment Decisions: From IT Investment Intensity to Effectiveness," Information Resources Management Journal (IRMJ) 13, no.4: 34-43. http://doi.org/10.4018/irmj.2000100104

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Abstract

Many information technology projects fail, especially those intended as strategic. Yet, there is little research that attempts to explain the link between the IT investment intensity of strategic investment decisions (SIDs) and organizational decision-making, in order to understand this phenomenon. This paper proposes an analytical model employing a number of constructs: effectiveness of decisions, interaction and involvement in the decision formulating process, accuracy of information and strategic considerations in the evaluation process, rarity of decisions, and the degree of IT intensity of an investment in strategic investment decisions. The model explores the relationships influencing the effectiveness of decisions. Empirical testing is based on a sample of 80 SIDs from Taiwanese enterprises. The results show that interaction, accuracy of information, and strategic considerations are mediators in the linkage of IT investment intensity and the effectiveness of SIDs. The implications of these findings for the management of strategic IT investment decisions are discussed.

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