COMMUNICATIONS

 

Chief information officers: An empirical study of competence, organisational positioning and implications for performance

 

 

Jason F Cohen; Claire M Dennis

School of Economic and Business Sciences, University of the Witwatersrand

 

 

---

ABSTRACT

The role and contribution of the firm's Chief Information Officer has been the subject of much debate and uncertainty. Yet, too few empirical studies have examined the implications of the CIO role. This study examined the effects of CIO demography, CIO competencies as well as CIO organisational positioning on the contribution of information systems (IS&T) to business performance. Data were collected from 111 South African companies and results revealed that CIO business, interpersonal/political and technology management competence have significant direct effects on the dependent variable. The effect of CIO organisational position, including structural power and political relationship, was found to be mediated by CIO competence. CIO work experience also impacted the contribution of IS&T. Results have important implications for our understanding of the competencies and organisational positioning required of executives charged with the responsibility for information systems and technology management.

Keywords: Information systems management, chief information officer, competence, top management, upper echelons, performance

JEL: M14

---

 

 

“Full text available only in PDF format”

 

 

References

APPLEGATE, L.M. & ELAM, J.J. 1992. New information system leaders - a changing role in a changing world. MIS Quarterly, 16(4): 469-481.         [ Links ]

ARMSTRONG, C.P. & SAMBAMURTHY, V 1999. Information technology assimilation in firms: the influence of senior leadership and IT infrastructures. Information SystemsResearch, 10(4): 304-327.         [ Links ]

ASTLEY, W.G. & SACHDEVA, P.S. 1984. Structural sources of intraorganizational power: a theoretical synthesis. Academy of Management Review, 9(1): 104-113.         [ Links ]

BANKER, R., HU, N. & PAVLOU, P.A. 2004. IT orientation, CIO reporting structure, and firm performance: to whom should the CIO report? Available online: http://opim-sun.wharton.upenn.edu/wise2004/sun112.pdf.         [ Links ]

BASSELLIER, G. & BENBASAT, I. 2004. Business competence of information technology professionals: conceptual development and influence on IT-business partnership. MIS Quarterly, 28(4): 673-694.         [ Links ]

BOYNTON, A.C., ZMUD, R.W. & JACOBS, G.C. 1994. The influence of IT management practice on IT use in large organizations. MIS Quarterly, 18(3): 299-318.         [ Links ]

CHATTERJEE, D., RICHARDSON, V.J. & ZMUD, R.W. 2001. Examining the shareholder wealth effects of announcements of newly created CIO positions, MIS Quarterly, 25(1): 43-70.         [ Links ]

CHEN, D.Q. & PRESTON, D.S. 2007. Understanding CIO role effectiveness: the antecedents and consequents. Proceedings of the 40th Hawaii International Conference on System Sciences, 3-6 January, Waikoloa, Hawaii.         [ Links ]

CHIN, W. 1998. Issues and opinion on structural equation modeling. MIS Quarterly, 22(1): vii-xvi.         [ Links ]

CIO.COM 2009. The state of the CIO '09, CIO.com, Available online: http://assets.cio.com/documents/cache/pdfs/2009_state_of_the_cio_charts.pdf.         [ Links ]

COGHLAN, L. & HURLEY, M. 1996. A profile of the information technology executive, Information Management and Computer Security, 4(1): 5-13.         [ Links ]

COHEN, J.F. 2008. Contextual determinants and performance implications of information systems strategy planning within South African firms. Information & Management, 45(8): 547-555.         [ Links ]

DAWSON, G. & WATSON, R. 2005. What really matters: an empirical study on the relative importance of the CIO and the maturity of the IS organization in producing effective IS performance. Proceedings of the 2005 Southern Association of Information Systems Conference, pp. 233-240.         [ Links ]

DELOITTE UK & CRANFIELD SCHOOL OF MANAGEMENT. 2008. Realising value from a CIO: navigating the silicon ceiling. Available online: http://www.deloitte.com/dtt/cda/doc/content/UK_C_RealisingValueFromACIO.pdf.         [ Links ]

DELONE, WH 1981. Firm size and the characteristics of computer use, MIS Quarterly, 5(4): 65-77.         [ Links ]

DOLL, W.J. 1985. Avenues for top management involvement in successful MIS development. MIS Quarterly, 9(1): 17-35.         [ Links ]

EARL, M.J. & FEENY, D.F. 1995. Is your CIO adding value? The McKinsey Quarterly, 1995 Issue 2: 144-161.         [ Links ]

EISENHARDT, K.M. & BOURGEOIS, L.J. 1988. Politics of strategic decision making in high-velocity environments: toward a midrange theory. Academy of Management Journal, 31(4): 737-770.         [ Links ]

EISENHARDT, K.M. & ZBARACKI, M.J. 1992. Strategic decision making. Strategic Management Journal, 13(Winter): 17-37.         [ Links ]

ENNS, H.G. 2005. Do IT professionals need business acumen to build effective partnerships. Academy of Management Executive, 19(2):159-161.         [ Links ]

ENNS, H.G., HUFF, S.L. & GOLDEN, B.R. 2001. How CIOs obtain peer commitment to strategic IS proposals: barriers and facilitators. Journal of Strategic Information Systems, 10(1): 3-14.         [ Links ]

ENNS, H.G., HUFF, S.L. & GOLDEN, B.R. 2003. CIO influence behaviors: the impact of technical background, Information & Management. 40(5): 467-485.         [ Links ]

ENNS, H.G., HUFF, S.L. & HIGGENS, C.A. 2003. CIO lateral influence behaviors: gaining peers' commitment to strategic information systems. MIS Quarterly, 27(1): 155-176.         [ Links ]

EPSTEIN, M.J. & REJC, A. 2005. How to measure and improve the value of IT. Strategic Finance, 87(4): 35-41.         [ Links ]

EVANS, N. 2006. Leading information technology in South Africa: a unique challenge. Proceedings of SIGMIS-CPR'06, April 13-15, 2006, Claremont, California, USA: 90-96.         [ Links ]

FEENY, D.F., EDWARDS, B.R. & SIMPSON, K.M. 1992. Understanding the CEO/CIO relationship. MIS Quarterly, 16(4): 435-448.         [ Links ]

FINKELSTEIN, S. & HAMBRICK, D.C. 1990. Top management team tenure and organizational outcomes: the moderating role of managerial discretion. Administrative Science Quarterly, 35(3):484- 503.         [ Links ]

FORNELL, C. & BOOKSTEIN, F.L. 1982. Two structural equation models: LISREL and PLS applied to consumer exit-voice theory. Journal of Marketing Research, 19(4): 440-452.         [ Links ]

GARTNER. 2007. Gartner predicts 2008: CIO success factors - past practices will have little bearing on the future. Gartner Research, ID: G00153301, 14 December.         [ Links ]

GEFEN, D., STRAUB, DW & BOUDREAU, M. 2000. Structural equation modeling and regression: guidelines for research practice. Communications of the AIS, 4, Article 7.         [ Links ]

GOTTSCHALK, P. & TAYLOR, N.J. 2000. Strategic management of IS/IT functions: the role of the CIO. Proceedings of the 33rd Hawaii International Conference on System Sciences, 4-7 January, Maui, Hawaii.         [ Links ]

GROVER, V, JEONG, S.R., KETTINGER, W.J. & LEE, C.C. 1993. The chief information officer: a study of managerial roles. Journal of Management Information Systems, 10(2):107-130.         [ Links ]

HAMBRICK, D.C. 2007. Upper echelons theory: an update. Academy of Management Review, 32(2): 334-343.         [ Links ]

HAMBRICK, D.C. & MASON, P.A. 1984. Upper echelons: the organization as a reflection of its top managers. Academy of Management Review, 9(2): 193-206.         [ Links ]

HOFFMANN, T 1999. The meanings of competency. Journal of European Industrial Training, 23(6): 275-286.         [ Links ]

JAIN, R. 1997. Key constructs in successful IS implementation: South-east Asian experience source. Omega, 25(3): 267-284.         [ Links ]

JARVENPAA, S.L. & IVES, B. 1991. Executive involvement and participation in the management of information systems. MIS Quarterly, 15(2): 205-227.         [ Links ]

JOHNSON, A.M. & LEDERER, A.L. 2005. The effect of communication frequency and channel richness on the convergence between chief executive and chief information officers. Journal of Management Information Systems, 22(2): 227-252.         [ Links ]

JOHNSTON, K.; MUGANDA, N. & THEYS, K. 2007. Key issues for CIOs in South Africa. Electronic Journal on Information Systems in Developing Countries, 30(3): 1-11.         [ Links ]

JONES, M.C. & ARNETT, K.P. 1994. Linkages between the CEO and the IS environment: An empirical assessment. Information Resources Management Journal, 7(1): 20-34.         [ Links ]

JONES, M.C.; TAYLOR, G.S. & SPENCER, B.A. 1995. The CEO/CIO relationship revisited: an empirical assessment of satisfaction with IS. Information & Management, 29(3): 123-130.         [ Links ]

KARAHANNA, E. & WATSON, R.T. 2006. Information systems leadership. IEEE Transactions on Engineering Management, 53(2): 171-176.         [ Links ]

KARIMI, J., GUPTA, Y.P. & SOMERS, T.M. 1996. The congruence between a firm's competitive strategy and information technology leader's rank and role. Journal of Management Information Systems, 13(1): 63-88.         [ Links ]

KRISHNAN, H.A. & PARK, D. 1998. The influence of top management team leadership on corporate refocusing: a theoretical framework. Journal of Leadership Studies, 5(2): 50-61.         [ Links ]

LANE, M.S. & KORONIOS, A. 2007. Critical competencies required for the role of the modern CIO. Proceedings of the 18th Australasian Conference on Information Systems, 5-7 Dec 2007, Toowoomba, Australia: 1099-1109.         [ Links ]

LEE, D.M.S., TRAUTH, E.M. & FARWELL, D. 1995. Critical skills and knowledge requirements of IS professionals: a joint academic/industry investigation. MIS Quarterly, 19(3): 313-340.         [ Links ]

LEE, G.G. & PAI, J. 2003. Effects of organizational context and inter-group behaviour on the success of strategic information systems planning: an empirical study. Behaviour and Information Technology, 22(4): 263-280.         [ Links ]

LEE, S., YEN, D., HAVELKA, D. & KOH, S. 2001. Evolution of IS professionals' competency: an exploratory study, Journal of Computer Information Systems, 41(4): 21-31.         [ Links ]

LI, Y., TAN, C.H., TEO, H.H. & TAN, B.C.Y. 2006. Innovative usage of information technology in Singapore organizations: do CIO characteristics make a difference? IEEE Transactions on Engineering Management, 53(2): 177-190.         [ Links ]

LOFGREN, C. 2003. The importance of being influential. CIO.com, Available online: http://www.cio.com/article/31781/The_Importance_of_Being_Influential.         [ Links ]

MCFARLAN, F.W., MCKENNEY, J.L. & PYBURN, P. 1983. The information archipelago - plotting a course. Harvard Business Review, 61(1): 145-156.         [ Links ]

MCKENNA, S. 2004. Predispositions and context in the development of managerial skills. Journal and Management Development, 23(7): 664-677.         [ Links ]

OVERBY, S. 2003. The incredible shrinking CIO, CIO.com, Available online: http://www.cio.com/article/29840/The_Incredible_Shrinking_CIO.         [ Links ]

PERLMAN, E. 2007. Topside turnover. Governing.com, Available online: http://www.governing.com/article/topside-turnover.         [ Links ]

PFEFFER, J. 1992. Managing with power: politics and influence in organizations, Boston: Harvard Business School Press.         [ Links ]

PIGNI, F., RAVARINI, A., TAGLIAVINI, M., MORO, J. & GUIMARAES, T 2002. Using ICT to improve SMEs performance: does the CIO matter? Proceedings of SCI 2002 Conference, July 2002, Orlando, USA.         [ Links ]

PRESTON, D.S., KARAHANNA, E. & ROWE, F. 2006. Development of shared understanding between the chief information officer and top management team in U.S. and French organizations: a cross-cultural comparison. IEEE Transactions on Engineering Management, 53(2): 191-206.         [ Links ]

PRESTON, D.S., CHEN, D. & LEIDNER, D.E. 2008. Examining the antecedents and consequences of CIO strategic decision-making authority: an empirical study. Decision Sciences, 39(4): 605-642.         [ Links ]

RAGHUNATHAN, B. & RAGHUNATHAN, T.S. 1989. Relationship of the rank of information systems executive to the organizational role and planning dimensions of information systems. Journal of Management Information Systems, 6(1): 111-126.         [ Links ]

RAJAGOPALAN, N. & DATTA, D.K. 1996. CEO characteristics: does industry matter? Academy of Management Journal, 39(1): 197-215.         [ Links ]

RANGANATHAN, C. & JHA, S. 2008. Do CIOs matter? Assessing the value of CIO presence in top management teams. Proceedings of the International Conference on Information Systems (ICIS), 14-17 December, Paris France.         [ Links ]

RANGANATHAN, C. & KANNABIRAN, G. 2004. Effective management of information systems function: an exploratory study of Indian organizations. International Journal of Information Management, 24: 247-266.         [ Links ]

RAVARINI, A., MORO, J., TAGLIAVINI, M. & GUIMARAES, T 2001.Exploring the impact of CIO competence on company performance. Proceedings of Information Resources Management Association Annual Conference, 20-23 May, Toronto, Canada.         [ Links ]

REICH, B.R. & BENBASAT, I. 2000. Factors that influence the social dimension of alignment between business and information technology objectives. MIS Quarterly, 24(1): 81-113.         [ Links ]

RIVARD, S., RAYMOND, L. & VERREAULT, D. 2006. Resource-based view and competitive strategy: an integrated model of the contribution of information technology to firm performance. Journal of Strategic Information Systems, 15: 29-50.         [ Links ]

ROEPKE, R., AGARWAL, R. & FERRATT, R.W. 2000. Aligning the IT human resource with business vision: the leadership initiative at 3M. MIS Quarterly, 24(2): 327-353.         [ Links ]

ROMANCZUK, J.B. & PEMBERTON, J.M. 1997. The chief information officer: rise and fall, ARMA Records Management Quarterly, 31(2): 14-26.         [ Links ]

SMALTZ, D., SAMBAMURTHY, V. & AGARWAL, R. 2006. The antecedents of CIO role effectiveness in organizations: an empirical study in the healthcare sector. IEEE Transactions on Engineering Management, 53(2): 207-222.         [ Links ]

SOBOL, M.G. & KLEIN, G. 2009. Relation of CIO background, IT infrastructure, and economic performance. Information & Management, 46(5): 271-278.         [ Links ]

STEPHENS, C. & LOUGHMAN, T. 1994. The CIO's chief concern: communication. Information & Management, 27(2): 129-137.         [ Links ]

STEPHENS, C.S., LEDBETTER, W.N., MITRA, A. & FORD, F.N. 1992. Executive or functional manager? The nature of the CIOs job, MIS Quarterly, 16(4): 449-467.         [ Links ]

TAGLIAVINI, M., MORO, J., RAVARINI, A. & GUIMARAES, T. 2003. Shaping CIO's competencies and activities to improve company performance: an empirical study. Proceedings of the European Conference on Information Systems, Naples Italy, June 19-21.         [ Links ]

THOMPSON, J.D. (1967) Organizations in action: social science bases of administrative theory, New York: McGraw-Hill.         [ Links ]

WATSON, R.T, KELLY, G.G., GALLIERS, R.D. & BRANCHEAU, J.C. 1997. Key issues in information systems management: an international perspective, Journal of Management Information Systems, 13(4): 91-115.         [ Links ]

WIERSEMA, M.F. & BANTEL, K.A. 1992. Top management team demography and corporate strategic change. Academy of Management Journal, 35(1): 91-121.         [ Links ]

WILLCOXSON, L. & CHATHAM, R. 2006. Testing the accuracy of the IT stereotype: Profiling IT managers' personality and behavioural characteristics. Information and Management, 43(6): 697-705.         [ Links ]

WU, J.H., CHEN, Y.I. & SAMBAMURTHY, V 2008. The impacts of BTM capability and CIO role effectiveness on firms' information technology assimilation: an empirical study. Proceedings of the International Conference on Information Systems (ICIS), 14-17 December, Paris France.         [ Links ]

YASAI-ARDEKANI, M. & HAUG, R.S. 1997. Contextual determinants of strategic planning processes. Journal of Management Studies, 34(5): 729-767.         [ Links ]

YUN, S. 2007. Top manager's efficacy beliefs and organizational outcomes: an application of social cognitive theory. Seoul Journal of Business, 13(2): 139-155.         [ Links ]

 

Accepted February 2010

 

 

Endnotes

1 A trend recognised by the 2008 UKAIS conference.
2 This strategy allowed for variation in the specific titles used by organisations to describe the CIO role. Respondents were required to confirm that they served as the senior executive responsible for management of corporate information resources (Stephens et al., 1992).
3 IS&T experience was measured as 1 - p_i where p_i is the proportion of total years of work experience spent in the IS&T area. Thus the more years spent in IS&T, the lower would be the score thus leading to the negative sign on the relationship.
4 The mediating effect was confirmed by carrying out the procedure suggested by Baron and Kenny. Without the inclusion of CIO competence (the mediator), organisational positioning had a significant direct effect (p<0.05) on IS&T business value, but that effect became insignificant once CIO competence was introduced into the model.
5 It should be noted that CIOs from business functional backgrounds may be more reserved in reporting the contribution of IS&T to business value.