Start Date
14-12-2012 12:00 AM
Description
Drawing from the theories of organizational learning our research model proposes that experience with IT implementations builds crucial capabilities which strengthen managerial preferences for engaging in more IT innovations. We also hypothesize a similar relationship between past experience with business (product and process) innovations and future business innovations. Analyses of a detailed, longitudinal establishment-level data spanning eight years and 2,312 workplaces finds support for our hypotheses and also reveals two novel insights. First, IT innovation experience also subsequently increases the level of business innovations because of overlap in innovation capabilities between the two types of innovations. Second, perceived performance improvements from a recent IT innovation creates crucial feedback that, instead of encouraging further IT innovations, lowers its likelihood. We attribute this to the role of IT being a competitive necessity where decision-makers adopt a reactive stance, such that it is the negative, rather than positive, feedback that stimulates IT innovation.
Recommended Citation
Saraf, Nilesh; Dasgupta, Srabana; and Assadi, Pooria, "Explaining Information Technology and Business Innovations: The Role of Cumulative Experience and Performance Feedback" (2012). ICIS 2012 Proceedings. 4.
https://aisel.aisnet.org/icis2012/proceedings/SocialImpacts/4
Explaining Information Technology and Business Innovations: The Role of Cumulative Experience and Performance Feedback
Drawing from the theories of organizational learning our research model proposes that experience with IT implementations builds crucial capabilities which strengthen managerial preferences for engaging in more IT innovations. We also hypothesize a similar relationship between past experience with business (product and process) innovations and future business innovations. Analyses of a detailed, longitudinal establishment-level data spanning eight years and 2,312 workplaces finds support for our hypotheses and also reveals two novel insights. First, IT innovation experience also subsequently increases the level of business innovations because of overlap in innovation capabilities between the two types of innovations. Second, perceived performance improvements from a recent IT innovation creates crucial feedback that, instead of encouraging further IT innovations, lowers its likelihood. We attribute this to the role of IT being a competitive necessity where decision-makers adopt a reactive stance, such that it is the negative, rather than positive, feedback that stimulates IT innovation.