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Paper Type
ERF
Description
As information technology is considered a key driver of firm’s innovation, the role of a chief information officer (CIO) has been emphasized. However, firms face frequent CIO turnover. Thus, in this study, we argue that it is important to investigate the impact of CIO turnover on a firm’s innovativeness, and the spillover effect of CIO turnover on competitors’ innovativeness. We then propose a novel approach to testing these causal inferences of CIO turnover. We found that CIO turnover did not have a significant direct effect on its focal firm. However, the spillover effect is significant and positive, implying that firms produce more patents when their competitors experience CIO turnover than if CIOs at competing firms had not been dismissed. Since losing a CIO has ripple effects throughout the whole industry, firms should consider the unintended consequences of their decisions regarding CIO turnover.
Paper Number
1735
Recommended Citation
Jeong, Yeasung; Lee, Kang-Bok; Han, Sumin; Park, Young Woong; and Park, Junyoung, "CIO Turnover and its Consequences for Competitors" (2023). AMCIS 2023 Proceedings. 11.
https://aisel.aisnet.org/amcis2023/sig_scuidt/sig_scuidt/11
CIO Turnover and its Consequences for Competitors
As information technology is considered a key driver of firm’s innovation, the role of a chief information officer (CIO) has been emphasized. However, firms face frequent CIO turnover. Thus, in this study, we argue that it is important to investigate the impact of CIO turnover on a firm’s innovativeness, and the spillover effect of CIO turnover on competitors’ innovativeness. We then propose a novel approach to testing these causal inferences of CIO turnover. We found that CIO turnover did not have a significant direct effect on its focal firm. However, the spillover effect is significant and positive, implying that firms produce more patents when their competitors experience CIO turnover than if CIOs at competing firms had not been dismissed. Since losing a CIO has ripple effects throughout the whole industry, firms should consider the unintended consequences of their decisions regarding CIO turnover.
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