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Rationality in Strategic Information Technology Decisions: The Impact of Shared Domain Knowledge and IT Unit Structure *
Author(s) -
Ranganathan C.,
Sethi Vijay
Publication year - 2002
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.2002.tb01636.x
Subject(s) - rationality , knowledge management , resource (disambiguation) , unit (ring theory) , domain (mathematical analysis) , computer science , process (computing) , psychology , epistemology , mathematics , computer network , mathematical analysis , philosophy , mathematics education , operating system
Rationality is a fundamental concept to several models of IT planning and implementation. Though the importance of following rational processes in making strategic IT decisions is well acknowledged, there is not much understanding on why discrepancies occur in the IT decision‐making process and what factors affect rationality. Drawing upon structural and resource‐based perspectives of strategy, this study examines the influence of shared domain knowledge and IT unit structure on rationality in strategic IT decisions. Data were gathered from 223 senior IT executives using a survey to examine the relationships among the research constructs. The results suggest a positive impact of shared domain knowledge and formalization of IT unit structure on rationality in strategic IT decisions. Further, a highly centralized IT unit structure was found to negatively influence shared domain knowledge. On the other hand, formalization of IT structure positively influenced shared domain knowledge. The implications of the findings for research and practice are presented.