Managerial incentives and IT innovation: The moderating role of CEO's IT-education and career experience

Inmyung Choi, Kunsoo Han, Sunghun Chung, Alain Pinsonneault

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Despite the importance of IT innovation in the digitalized world, little research attention has been paid to examining the antecedents of firms' IT innovation, especially from a top management perspective. This study examines how managerial incentives, particularly risk-based ones, given to top managers motivate them to nurture IT innovation. We also consider how IT-related educational backgrounds and diversity of the career experiences of chief executive officers (CEOs) moderate the relationship between risk-based incentives and IT innovation. Our empirical analysis shows that risk-based incentives encourage top managers to support more IT innovation and to pursue more exploration in IT innovation by attenuating their risk-averse stance. In addition, our findings show that the impact of risk-based incentives on IT innovation and explorative IT innovation is stronger when the CEO has a stronger IT-related educational background and less diverse career experiences. Our results provide important theoretical and practical implications regarding the role of risk-based incentives and a CEO's background in fostering IT innovation.

Original languageEnglish
Title of host publicationInternational Conference on Information Systems 2018, ICIS 2018
PublisherAssociation for Information Systems
ISBN (Electronic)9780996683173
StatePublished - 2018
Event39th International Conference on Information Systems, ICIS 2018 - San Francisco, United States
Duration: Dec 13 2018Dec 16 2018

Publication series

NameInternational Conference on Information Systems 2018, ICIS 2018

Conference

Conference39th International Conference on Information Systems, ICIS 2018
Country/TerritoryUnited States
CitySan Francisco
Period12/13/1812/16/18

Keywords

  • Agency theory
  • Career experience
  • IT innovation
  • IT-educational background
  • Managerial incentives
  • Risk-based incentives
  • Vega

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