Abstract
The main objective of this study is to propose and test a pattern of positive reciprocity between senior IT executives (sITes) and firms with superior dynamic IT capability (ITC). Results based on panel data of 1326 large US firms from a wide spectrum of industries over a 13 year period (1997-2009) support the following positions: 1. There is a positive association between accrued sources of managerial power of sITes, such as structural and expert power, and a firm's ability to develop superior ITC. 2. Firms that achieve such ITC superiority are more likely to signal their appreciation and reward their sITes with more structural power (a proxy for higher compensation). If sITes value these rewards, they are more likely to stay longer with their firm. 3. There is a positive association between continuity of an already successful IT leadership and a firm’s ability to sustain its ITC superiority (durable ITC heterogeneity), thus setting in motion a virtuous cycle of positive reciprocity between sITes and IT capable firms. These findings have several and significant implications for top management teams, directors, and sITes.
Recommended Citation
Lim, J.; Stratopoulos, Theophanis; and Wirjanto, Tony, "CONTRIBUTION AND REWARD OF SENIOR IT EXECUTIVES IN IT CAPABLE FIRMS" (2012). AMCIS 2012 Proceedings. 11.
https://aisel.aisnet.org/amcis2012/proceedings/AccountingInformationSystems/11
CONTRIBUTION AND REWARD OF SENIOR IT EXECUTIVES IN IT CAPABLE FIRMS
The main objective of this study is to propose and test a pattern of positive reciprocity between senior IT executives (sITes) and firms with superior dynamic IT capability (ITC). Results based on panel data of 1326 large US firms from a wide spectrum of industries over a 13 year period (1997-2009) support the following positions: 1. There is a positive association between accrued sources of managerial power of sITes, such as structural and expert power, and a firm's ability to develop superior ITC. 2. Firms that achieve such ITC superiority are more likely to signal their appreciation and reward their sITes with more structural power (a proxy for higher compensation). If sITes value these rewards, they are more likely to stay longer with their firm. 3. There is a positive association between continuity of an already successful IT leadership and a firm’s ability to sustain its ITC superiority (durable ITC heterogeneity), thus setting in motion a virtuous cycle of positive reciprocity between sITes and IT capable firms. These findings have several and significant implications for top management teams, directors, and sITes.