The authors thank Jasbir Dhaliwal and Data Processing Management Association for their help and support in carrying out the study. We are grateful to the anonymous associate editor and the reviewers for their helpful comments that led to a significantly improved paper.
Rationality in Strategic Information Technology Decisions: The Impact of Shared Domain Knowledge and IT Unit Structure*
Article first published online: 7 JUN 2007
Volume 33, Issue 1, pages 59–86, January 2002
How to Cite
Ranganathan, C. and Sethi, V. (2002), Rationality in Strategic Information Technology Decisions: The Impact of Shared Domain Knowledge and IT Unit Structure. Decision Sciences, 33: 59–86. doi: 10.1111/j.1540-5915.2002.tb01636.x
- Issue published online: 7 JUN 2007
- Article first published online: 7 JUN 2007
- Received: May 23, 2001. Accepted: February 8, 2002.
- Information Systems Management;
- IT Unit Structure;
- Shared Domain Knowledge;
- Strategic IT Decisions
Rationality is a fundamental concept to several models of IT planning and implementation. Though the importance of following rational processes in making strategic IT decisions is well acknowledged, there is not much understanding on why discrepancies occur in the IT decision-making process and what factors affect rationality. Drawing upon structural and resource-based perspectives of strategy, this study examines the influence of shared domain knowledge and IT unit structure on rationality in strategic IT decisions. Data were gathered from 223 senior IT executives using a survey to examine the relationships among the research constructs. The results suggest a positive impact of shared domain knowledge and formalization of IT unit structure on rationality in strategic IT decisions. Further, a highly centralized IT unit structure was found to negatively influence shared domain knowledge. On the other hand, formalization of IT structure positively influenced shared domain knowledge. The implications of the findings for research and practice are presented.