The Institutionalization of IT Budgeting in Firms: Investigating Sources of Influence

The Institutionalization of IT Budgeting in Firms: Investigating Sources of Influence

Qing Hu (Florida Atlantic University, USA) and Jing Quan (Salisbury University, USA)
Copyright: © 2008 |Pages: 15
DOI: 10.4018/978-1-59904-570-2.ch016
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Organizations around the world invest billions of dollars each year in information technology (IT) related products and services. What are the factors influencing each individual firm’s investment budget decisions? Limited empirical results derived from firm-level data suggest that internal affordability, such as previous IT budget levels, sales, profitability, and size, are significant sources of influence. In this study, we introduce the perspective of “external institutional influence” for examining corporate IT budgeting processes, in addition to the internal affordability perspective. Using firm-level IT and financial data of publicly traded companies in the financial sector, we show that the two most significant sources of influence on corporate IT budgets are the firm’s IT spending level of the previous year (internal) and the IT spending level of the perceived industry leaders (external). We posit that as IT becomes pervasive in all aspects of business operations and all sectors of the economy, IT budgeting processes have been, at least partially, institutionalized. The implications of this institutionalization are discussed and future research directions are suggested.

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Table of Contents
Chapter 1
Joseph R. Muscatello, Diane H. Parente
Enterprise resource planning (ERP) systems, if implemented correctly, have shown that a firm can gain strategic and tactical advantages over their... Sample PDF
A Post-Implementation Case Study and Review of Enterprise Resource Planning (ERP) Implementations
Chapter 2
Mary C. Jones, Randall Young
This study presents the results of an exploratory study of Fortune 1000 firms and their enterprise resource planning (ERP) usage, as well as... Sample PDF
ERP Usage in Practice: An Empirical Investigation
Chapter 3
Vijay K. Vemuri, Shailendra C. Palvia
ERP systems are expected to provide many benefits, including improved business efficiency. However, they are also blamed for several business... Sample PDF
Improvement in Operational Efficiency Due to ERP Systems Implementation: Truth or Myth?
Chapter 4
Wen-Jang ("Kenny") Jih, Su-Fang Lee, Yuan-Cheng Tsai
A two-stage approach is employed to examine the influencing factors of consumer behaviors in the context of mobile advertising. The first stage of... Sample PDF
Consumer Perceptions of Mobile Advertising: An Application of the Theory of Reasoned Action
Chapter 5
Pratyush Bharati, Abhijit Chaudhury
Product customization is an important facility that e-commerce offers to its users. On the Web, choiceboard systems have become quite prevalent as... Sample PDF
Effective Product Customization on the Web: An Information Systems Success Approach
Chapter 6
Marc N. Haines, Dale L. Goodhue, Thomas F. Gattiker
As organizations implement enterprise systems, the issues of whether to “build or buy” new IT modules, and if buying, how much to customize... Sample PDF
Fit Between Strategy and IS Specialization: A Framework for Effective Choice and Customization of Information System Application Modules
Chapter 7
Rajesh Mirani
This chapter presents an evolutionary framework for the establishment and progression of client-vendor relationships in the context of offshored... Sample PDF
The Progression of Client-Vendor Relationships in Offshored Applications Development
Chapter 8
Marie-Claude Boudreau, Jonny Holmström
This chapter uses the theory of loose coupling to explain failure in the adoption of an information technology aimed at improving collaboration... Sample PDF
Understanding Information Technology Implementation Failure: An Interpretive Case Study of Information Technology Adoption in a Loosely Coupled Organization
Chapter 9
Hayward P. Andres
Organizations must provide appropriate work group structures and communication technologies in order for work groups to function effectively and... Sample PDF
The Impact of Communication Medium on Virtual Team Group Process
Chapter 10
Jeria L. Quesenberry, Eileen M. Trauth, Allison J. Morgan
Despite the recent growth in the number of women in the American labor force, women are still underrepresented in the IT workforce. Key among the... Sample PDF
Understanding the "Mommy Tracks" : A Framework for Analyzing Work-Family Balance in the IT Workforce
Chapter 11
Yingqin Zhong, John Lim
Computer-supported collaborative learning (CSCL) has received increasing research attention owing to advances in e-learning technology and... Sample PDF
Perceptions in Computer-Supported Collaborative Learning: Interaction of Cultural Diversity, Group Size, and Leadership
Chapter 12
Christian Wagner
Much of today’s organizational knowledge still exists outside of formal information repositories and often only in people’s heads. While... Sample PDF
Breaking the Knowledge Acquisition Bottleneck Through Conversational Knowledge Management
Chapter 13
Jang-Hwan Lee, Young-Gul Kim, Min-Yong Kim
This study examined the effects of the organizational climate maturity on knowledge-management performance, measured in terms of knowledge quality... Sample PDF
Effects of Managerial Drivers and Climate Maturity on Knowledge Management Performance: Empirical Validation
Chapter 14
Deb Sledgianowski, Jerry N. Luftman, Richard R. Reilly
Achieving IT-business alignment has been a long-standing, critical, information management issue. A theoretical framework of the maturity levels of... Sample PDF
Development and Validation of an Instrument to Measure Maturity of IT Business Strategic Alignment Mechanisms
Chapter 15
Sangho Lee, Soung Hie Kim
This chapter discusses the positive effects of IT investment on firm financial performance when a distinct range of characteristics is examined. The... Sample PDF
A Lag Effect of IT Investment on Firm Performance
Chapter 16
Qing Hu, Jing Quan
Organizations around the world invest billions of dollars each year in information technology (IT) related products and services. What are the... Sample PDF
The Institutionalization of IT Budgeting in Firms: Investigating Sources of Influence
Chapter 17
Federica Paganelli, Maria Chiara Pettenati, Dino Giuli
Effectively managing documents is a strategic requirement for every organization. Available Document Management Systems (DMS) often lack effective... Sample PDF
A metadata Model and Related Framework for Unstructured Document Management in Organizations
Chapter 18
Ram S. Sriram, Indrarini Laksmana
We investigate whether corporations are following the “best disclosure practices” when presenting business reports on their Web sites. As a... Sample PDF
Relevance and Usefulness of Corporate Web Site Disclosure Practices
Chapter 19
Xiaoni Zhang, Victor R. Prybutok, Chang E. Koh
This chapter investigates consumer online purchasing behavior using an augmented technology acceptance model. Particularly, we posit that Web use... Sample PDF
The Role of Impulsiveness in a TAM-Based Online Purchasing Behavior Model
Chapter 20
Ellen Baker, Gayle C. Avery, John Crawford
This chapter examines the role of technology in home-based telecommuting (HBT), and the implications of this role for organizational IT departments... Sample PDF
Home-Based Telecommuting: Technology's Role
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