Does Higher CIO Rank Serve as an Organizational Integration Mechanism?
نویسندگان
چکیده
Twenty years ago, ERP systems, Big Data and products embedded with information technology were not part of the IT landscape, but today these technologies are ubiquitous or at least top of mind for executives trying to remain competitive. Amidst this change, what firm level factors are critical to understanding the appropriate organizational response for the IT organization? We observe a previously unmeasured factor, the demand for integration, on the rank of the top IT executive, or CIO Rank. Using data on 186 Fortune 1000 firms over 17 years, we find that the demand for integration significantly influences the CIO Rank. Additional evidence suggests that a higher CIO Rank alleviates the generally harmful influence that the demand for integration has on firm performance, especially in recent years. The results illustrate the relevance of the demand for integration and that the CIO Rank may serve as an organizational integration mechanism for firms.
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