SESSION 4 - Chasing the hottest IT

Question 1

Whats the article about?

Answer 1

• new IT emerges quickly
  question: will be widely adopt or just a passing fad (short fashion period)
  IT Fashion: transitory collective belief than an information technology is new, efficient, and at forefront of practice
• aim of paper: examine organisational consequences of IT fashion

Question 2

What are the different hypotheses of the article?

Answer 2

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
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
–>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)