Sustaining IT advantage: the role of structural differences
MIS Quarterly - Special issue on the strategic use of information systems
The productivity paradox of information technology
Communications of the ACM
Assessing the impact of information technology on organizational performance
Strategic information technology management
Does successful investment in information technology solve the productivity paradox?
Information and Management
The impact of information technology on financial performance: the importance of strategic choice
European Journal of Information Systems - Special issue on information systems evaluationpast, present and future
Journal of Management Information Systems - Special issue: Impacts of information technology investment on organizational performance
Corporate Information Strategy and Management: The Challenges of Managing in a Network Economy (Paperback version)
An Empirical Study of the Casual Relationship Between IT Investment and Firm Performance
Information Resources Management Journal
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Each year, businesses and organizations around the world invest billions of dollars in information technology IT related products and services. What are the factors influencing each individual firm's investment budget decisions? Limited empirical results derived from firm-level data suggest that internal affordability, such as previous IT budget levels, sales, profitability, and size, are significant sources of influence. In this study, we introduce the perspective of external institutional influence for examining corporate IT budgeting processes in addition to the internal affordability perspective. Using firm-level IT and financial data of publicly traded companies in the financial sector, we show that the two most significant sources of influence on corporate IT budgets are the firm's IT spending level of the previous year internal and the IT spending level of the perceived industry leaders external. We posit that as IT becomes pervasive in all aspects of business operations and all sectors of the economy, IT budgeting processes have been at least partially institutionalized. The implications of this institutionalization are discussed, and future research directions are suggested.