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Influential Factors for the IT Investment Decision Making Quality: An Empirical Study Focus on IT Governance

  • Ham, Ju-Yeon (Department of MIS Korea University Business School) ;
  • Lee, Jung-Hoon (Graduate School of Information Yonsei University) ;
  • Woo, Hyeok-Jun (Graduate School of Information Yonsei University)
  • Received : 2010.10.11
  • Accepted : 2010.12.10
  • Published : 2010.12.28

Abstract

In recent years, many leading corporations are actively adopting IT as competitive resources to improve productivity and processes efficiency with strategic alignments. In effect, IT investment also continues to increase. As a vast growth of IT investment, questions and criticism on recent IT investment results are also rapidly being raised. Especially, improper decision making and management on IT investment may cause negative impact on the company's reputation and finances, therefore companies need reasonable and wise investment decision making on new IT projects. This study applies the conceptual framework of IT governance to IT investment decision making cases to examine how IT investment governance influences the quality of IT investment decision making and how business-IT strategic alignment affects the quality of IT investment decision making. This paper contributes to identify the main factors for reasonable and effective IT investment decision making and expected to provide proper guidelines for IT investment decision making.

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