Version 1
: Received: 5 September 2024 / Approved: 5 September 2024 / Online: 5 September 2024 (10:03:12 CEST)
How to cite:
Khallaf, A.; Samet, A.; Efendi, J. Do Firm’s Characteristics Influence Its IT Strategies? A Study of the Driving Force of a Firm’s Decision to Appoint IT Expertise. Preprints2024, 2024090441. https://doi.org/10.20944/preprints202409.0441.v1
Khallaf, A.; Samet, A.; Efendi, J. Do Firm’s Characteristics Influence Its IT Strategies? A Study of the Driving Force of a Firm’s Decision to Appoint IT Expertise. Preprints 2024, 2024090441. https://doi.org/10.20944/preprints202409.0441.v1
Khallaf, A.; Samet, A.; Efendi, J. Do Firm’s Characteristics Influence Its IT Strategies? A Study of the Driving Force of a Firm’s Decision to Appoint IT Expertise. Preprints2024, 2024090441. https://doi.org/10.20944/preprints202409.0441.v1
APA Style
Khallaf, A., Samet, A., & Efendi, J. (2024). Do Firm’s Characteristics Influence Its IT Strategies? A Study of the Driving Force of a Firm’s Decision to Appoint IT Expertise. Preprints. https://doi.org/10.20944/preprints202409.0441.v1
Chicago/Turabian Style
Khallaf, A., Anis Samet and Jap Efendi. 2024 "Do Firm’s Characteristics Influence Its IT Strategies? A Study of the Driving Force of a Firm’s Decision to Appoint IT Expertise" Preprints. https://doi.org/10.20944/preprints202409.0441.v1
Abstract
The demand for information technology expertise has grown rapidly in the last few decades, signaling a firm’s commitment to integrating IT into its core business strategy. Understanding the conditions under which firms appoint a chief information officer (CIO) can provide valuable insights into the evolving role of IT in corporate governance. This study addresses a crucial gap in the literature by exploring the determinants of a firm's decision to hire a CIO at the top management level. The study identifies several factors that influence a firm’s decision to appoint a CIO, including the firm's size, its level of innovation, and its prior performance. The study examines these assertions by comparing the characteristics of firms that appoint a CIO at the top management level with those of similar firms in their industries that do not have a CIO position prior to the appointment. A logistic regression model that considers CIO firms and their matched firms indicates that firms are more likely to hire a new CIO after they experience loss, have larger capital expenditures and higher market value. Our study provides empirical evidence on why certain firms prioritize IT leadership at the executive level.
Keywords
Chief Information Officer; IT governance; Intellectual capital; R&D investments; IT leadership; Firm characteristics
Subject
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
