Information Technology Assimilation in Firms: The Influence of Senior Leadership and IT Infrastructures

Abstract

IT assimilation is regarded as an important outcome in the efforts of firms to leverage the potential of information technologies in their business activities and strategies. Despite significant investments in information technology, considerable diversity exists in how well firms have been able to assimilate IT and leverage the business value of IT. This research draws upon the emerging knowledge-based and resource-based views of the firm to examine the influence of three factors on IT assimilation: (i) quality of senior leadership, (ii) sophistication of IT infrastructures, and (iii) organizational size. Drawing upon a large-scale sample survey where responses were obtained from CIOs and senior business executives who were members of the firms' top management teams, the study examines a variety of mostly normative prescriptions. The findings provide robust evidence about the impacts of CIOs' business and IT knowledge on IT assimilation. Further, we find that CIOs' membership in top management teams and their informal interactions with TMT members enhance their knowledge, particularly their business knowledge. We find that the intensity of the relationship between CIO's interactions with the top management team and their level of IT and business knowledge is much stronger in firms that articulate a transformational IT vision. The sophistication of IT infrastructures was also found to significantly impact IT assimilation. Surprisingly, the IT knowledge of senior business executives was not found to be a significant influence on IT assimilation. The implications of these findings for evolving a deeper understanding of the dynamics underlying IT assimilation are presented.