Date of Graduation
8-2024
Document Type
Dissertation
Degree Name
Doctor of Philosophy in Business Administration (PhD)
Degree Level
Graduate
Department
Information Systems
Advisor/Mentor
Sabherwal, Rajiv
Committee Member
Steelman, Zachary
Second Committee Member
Lacity, Mary
Third Committee Member
Richardson, Vernon J.
Keywords
BVIT; Information technology; IT infrastructure; IT infrastructure trends; Mirroring
Abstract
This dissertation explores the complexities of firms' IT infrastructure resource allocation decisions through two essays. The research utilizes extensive datasets and advanced statistical methods to provide nuanced insights into strategic IT decisions. Essay one examines the performance implications of mirroring the IT infrastructure resource allocation decisions of various leading firms, including leading IT firms (identified by InformationWeek), industry firms (based on performance), and business strategy firms (based on performance) through the lens of mimetic isomorphism. Findings indicate that lower IT infrastructure intensity generally leads to higher future performance, suggesting IT infrastructure could also be viewed as an expense (whereas prior IS research primarily views IT as an investment due to focusing on more IT astute firms). The performance benefits of mirroring vary depending on the type of leading firms being mirrored. We found that mirroring industry-leading firms consistently showed positive performance outcomes while mirroring leading IT firms was not beneficial. This in part is due to the uniqueness of leading IT firms that make it difficult for mirroring firms to garner similar positive performance benefits through their approach to leveraging IT infrastructure (e.g., Leading IT firms approach IT more so from an investment perspective). Essay two further explores IT infrastructure trends within the industry by first focusing on the motivations to deviate from industry norms (average IT infrastructure resource allocations) and leading industry firms (identified through performance) and the performance consequences of deviating from such industry IT infrastructure trends. In this essay, we introduce the theory of Red Queen competition in addition to mimetic isomorphism. We explored several key IT aspects that motivate firms to deviate from such IT infrastructure trends, including strategic IT alignment, IT infrastructure capabilities, and IT competence. Findings indicate that high IT competence and IT infrastructure capabilities (related to revenue generation) served as consistent motivators to deviate from both forms of industry IT infrastructure trends. The study then reveals that deviation from industry norms is associated with positive performance, while deviation from leading firms' trends does not yield the same benefits. Such a finding provides credence to both mimetic isomorphism and Red Queen competition, depending upon which IT infrastructure trend is being mirrored. Together, these essays highlight the performance consequences of mirroring IT infrastructure trends and the importance of contextual factors, including the types of trends to mirror (leading firms vs. industry norms), the variety of leading firms to mirror (leading IT firms, leading industry firms, leading strategy firms), and the firm's IT aspects that motivate deviation from such IT infrastructure trends.
Citation
Yates, J. (2024). Seeking Guidance for Firms’ IT Infrastructure Decisions: TwoEmpirical Studies. Graduate Theses and Dissertations Retrieved from https://scholarworks.uark.edu/etd/5438
