Chasing the Hottest IT: Effects of Information Technology Fashion on Organisations

Question 1

Chasing the Hottest IT: Effects of Information Technology Fashion on Organisations

INTRODUCTION

Answer 1

new IT emerges quickly
 question: will be widely adopt or just a passing fad (short fashion period)
* aim of paper: examine organisational consequences of IT fashion

Question 2

Chasing the Hottest IT: Effects of Information Technology Fashion on Organisations

What is IT Fashion?

Answer 2

transitory collective belief than an information technology is new, efficient, and at forefront of practice

Question 3

Chasing the Hottest IT: Effects of Information Technology Fashion on Organisations

HYPOTHESES : 1& 2

Answer 3

H1: organisations gain in reputation when they are informally associated with IT in fashion
H2: organisations gain in reputation when they adopt and implement IT in fashion

-> supported external legitimacy: companies considered more reputable when linked to IT fashion even if these lead to sagging performance

Question 4

Chasing the Hottest IT: Effects of Information Technology Fashion on Organisations

HYPOTHESES :3 & 4

Answer 4

H3: organisational leaders are compensated more when their organisations are informationally associated with IT in fashion
H4: organisational leaders are compensated more when their organisations adopt and implement IT in fashion

-> supported internal legitimacy: firm increases IT fashion association by 1%, CEO’s compensation increases by 0.27% next year

Question 5

Chasing the Hottest IT: Effects of Information Technology Fashion on Organisations

HYPOTHESES :5A & 5B

Answer 5

H5a: adopting and implementing IT in fashion leads to lower organisational performance
H5b: adopting and implementing IT in fashion leads to higher organisational performance

-> following IT fashions informationally does not lower/higher performance

-> following IT fashions materially leads to suffering performance in following year, improved performance in third year (reason: takes time implement organisational structure and business processes that complement new IT before realising the benefits of technologies)