Governance, Strategy, and Value of IS

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Paper Number

1230

Paper Type

Completed

Description

Although prior studies examine how the characteristics of CEOs influence IT-related business initiatives, we have a limited understanding of how CEOs’ political ideology is associated with the strategic decisions in the IS setting. This study conceptualizes CEO political ideology (liberal vs. conservative) by drawing upon upper echelon theory. Then, we define and measure IT resource disparity to capture how unevenly CEOs allocate their IT resource across business units. Empirically, we find that liberal CEOs are more likely to allocate IT resources evenly (i.e., low IT resource disparity), whereas conservative CEOs prefer to allocate IT resources unevenly (i.e., high IT resource disparity). In addition, we find that CEO political ideology has a significant moderating role in the relationship between IT resource disparity and firm performance. Our study provides important implications for research and practice.

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Dec 12th, 12:00 AM

CEO Political Ideology and IT Resource Disparity

Although prior studies examine how the characteristics of CEOs influence IT-related business initiatives, we have a limited understanding of how CEOs’ political ideology is associated with the strategic decisions in the IS setting. This study conceptualizes CEO political ideology (liberal vs. conservative) by drawing upon upper echelon theory. Then, we define and measure IT resource disparity to capture how unevenly CEOs allocate their IT resource across business units. Empirically, we find that liberal CEOs are more likely to allocate IT resources evenly (i.e., low IT resource disparity), whereas conservative CEOs prefer to allocate IT resources unevenly (i.e., high IT resource disparity). In addition, we find that CEO political ideology has a significant moderating role in the relationship between IT resource disparity and firm performance. Our study provides important implications for research and practice.

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