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Innovation budget pressure, quality of IS information, and departmental performance

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  • Dunk, Alan S.

Abstract

Evidence suggests that innovation budgets need to be carefully managed due to increasingly demanding markets, changes in technology and greater international competition. Companies often express concern over the magnitude of their innovation costs, potentially inhibiting them from investing in new product development. This has given rise to concern for innovation budget pressure, which focuses on constraining costs to budgeted levels even if further expenditure might facilitate enhancements in terms of the quality and speed of the innovation process. However, suggestions have been made that decision systems in these settings could benefit in terms of performance outcomes from improvements in information system (IS) information quality. The literature suggests that the impact of quality of IS information on departmental performance is dependent on whether there is an emphasis on innovation budget pressure. The results of this study show that when innovation budget pressure is high, quality of IS information enhances performance. In contrast, when the emphasis on innovation budget pressure is low, quality of IS information does not promote performance.

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  • Dunk, Alan S., 2007. "Innovation budget pressure, quality of IS information, and departmental performance," The British Accounting Review, Elsevier, vol. 39(2), pages 115-124.
    • Handle: RePEc:eee:bracre:v:39:y:2007:i:2:p:115-124
    DOI: 10.1016/j.bar.2007.03.002
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    1. Odysseas Pavlatos & Hara Kostakis, 2022. "Exploring the Relationship between Target Costing Functionality and Product Innovation: The Role of Information Systems," Australian Accounting Review, CPA Australia, vol. 32(1), pages 124-140, March.
    2. Rajni Mala & Parmod Chand, 2015. "Judgment and Decision‐Making Research in Auditing and Accounting: Future Research Implications of Person, Task, and Environment Perspective," Accounting Perspectives, John Wiley & Sons, vol. 14(1), pages 1-50, March.
    3. Muhammad Nouman & Aamer Taj & Saleem Gul, 2017. "The Individual's Influence on Low-Technology Innovation: A Critical Realism Based Case Study on North-West Pakistan's Marble Sector," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(1), pages 131-155, March.

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