Start Date

12-16-2013

Description

Using data from over 250 US firms over the 1999-2003 period, we address how a firm’s CIO position influences the level of IT investments and the returns to IT investments. We find that CIO position has a significant impact on IT investments: firms with a formal CIO position make higher levels of IT investments. We also find that returns to IT investments are greater for firms whose CIOs hold multiple titles, compared to firms without CIOs or CIOs in less senior management positions. In addition, we find that the impact of CIO’s position on IT investments is much greater in “transform” industries compared to “automate” and “informate” industries. Further, we find that CIO position has significantly stronger impacts in IT intensive firms than in non-IT intensive firms, in terms of both its impact on IT investments and the moderating effect on returns to IT investments.

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Dec 16th, 12:00 AM

How CIO Position Influences IT Investments and Firm Performance

Using data from over 250 US firms over the 1999-2003 period, we address how a firm’s CIO position influences the level of IT investments and the returns to IT investments. We find that CIO position has a significant impact on IT investments: firms with a formal CIO position make higher levels of IT investments. We also find that returns to IT investments are greater for firms whose CIOs hold multiple titles, compared to firms without CIOs or CIOs in less senior management positions. In addition, we find that the impact of CIO’s position on IT investments is much greater in “transform” industries compared to “automate” and “informate” industries. Further, we find that CIO position has significantly stronger impacts in IT intensive firms than in non-IT intensive firms, in terms of both its impact on IT investments and the moderating effect on returns to IT investments.