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IT/IS implementation risks and their impact on firm performance

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  • Chatzoglou, Prodromos D.
  • Diamantidis, Anastasios D.

Abstract

There has been considerable theoretical work on the role of information systems (IS) in creating competitive advantage and enhancing organizational performance. The literature identifies a consistent lack of success by organizations in achieving business benefits from their IS investments and in particular their difficulties in obtaining a sustainable competitive advantage. A great deal of debate appears to exist nowadays related to the participation of information technology (IT) risks to organizational performance. Previous research has dealt with the examination of the existing relationships between the implemented information technology and firm's performance variables. This research focuses on the IT impact on firm's non-financial IT risk. The research was conducted using questionnaires that were sent to world's five hundred largest corporations as they were published in the fortune magazine (European edition, No. 14, 2003) and to Greek companies. The results indicate that IT risk factors affect mainly coordination and partially information ability but not productivity. Furthermore, the most significant risk factors affecting business performance are management ability, information integrity, controllability and exclusivity.

Suggested Citation

  • Chatzoglou, Prodromos D. & Diamantidis, Anastasios D., 2009. "IT/IS implementation risks and their impact on firm performance," International Journal of Information Management, Elsevier, vol. 29(2), pages 119-128.
    • Handle: RePEc:eee:ininma:v:29:y:2009:i:2:p:119-128
    DOI: 10.1016/j.ijinfomgt.2008.04.008
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    Cited by:

    1. Hung, Yu Wen & Hsu, Shih-Chieh & Su, Zhi-Yuan & Huang, Hsieh-Hong, 2014. "Countering user risk in information system development projects," International Journal of Information Management, Elsevier, vol. 34(4), pages 533-545.
    2. Wen‐Hsien Tsai & Yu‐Wei Chou & Kuen‐Chang Lee & Wan‐Rung Lin & Elliott T.Y. Hwang, 2013. "Combining Decision Making Trial and Evaluation Laboratory with Analytic Network Process to Perform an Investigation of Information Technology Auditing and Risk Control in an Enterprise Resource Planni," Systems Research and Behavioral Science, Wiley Blackwell, vol. 30(2), pages 176-193, March.
    3. Chang, Hsin Hsin & Wang, I. Chen, 2011. "Enterprise Information Portals in support of business process, design teams and collaborative commerce performance," International Journal of Information Management, Elsevier, vol. 31(2), pages 171-182.
    4. Liu, Shan & Deng, Zhaohua, 2015. "How environment risks moderate the effect of control on performance in information technology projects: Perspectives of project managers and user liaisons," International Journal of Information Management, Elsevier, vol. 35(1), pages 80-97.

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