Empirical analysis of risk-taking behavior in IT platform migration decisions

Authors:
Seonyoung Shim;Myungsin Chae;Byungtae Lee
Affiliations:
Department of Business Administration, College of Social Science, Seoul Women's University, 623 Hwarangno, Nowon-gu, Seoul 139-774, Republic of Korea;Seoul University of Venture and Information, Seochodong, Seochogu, Seoul, Republic of Korea;Graduate School of Business, Korea Advanced Institute of Science and Technology (KAIST), 207-43 Cheongryangri2-dong, Dongdaemun-gu, Seoul, Republic of Korea
Venue:
Computers in Human Behavior
Year:
2009

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Abstract

Information technology (IT) platform migration incurs a great deal of risk because of the massive rewriting of legacy systems and a wide range of new technology adoptions. Therefore IT platform decisions need to be made in a mindful manner because of the high degree of investment risk. However, more aggressive migrations, compared to the global trend, to an open system have been observed in Korean organizations. This phenomenon defies the common understanding of IT investment risk and encourages the investigation of the elusive characteristics underlying IT investment decisions. The effect of IT decision-makers' perceptions and risk propensity on their IT platform migration decisions is examined in the context of risky decisions. In addition to risk perception, decision-makers' risk propensity also has a significant effect on IT investment decisions. By observing the monarchical IT governance and IT-biased careers of decision-makers, some implications of large-scale IT investment decisions are derived.