Information technology investments versus the illusion of control bias

Rodrigo Fernandes Malaquias and Alberto Luiz Albertin

International Journal of Business Information Systems, 2019, vol. 32, issue 4, 507-521

Abstract: The literature indicates that the characteristics of managers, including behavioural biases, affect corporate investment/financing decisions. In this paper, we analyse a specific bias that, up to the best of our knowledge, has not been addressed in the context of information technology (IT) investments, which is the illusion of control bias. We develop the argument that managers' illusion of control negatively affects the investments in IT made by firms they manage. Through a case study, the results of this paper indicate that behavioural biases of small firms' managers are related with an illusion of control, which can affect decisions on IT investments. These results have important implications for owners/managers of small firms, especially for those firms from emerging economies.

Keywords: Latin America; development; technology acceptance; small business; Brazil; decision-making on IT; organisational performance; corporate decisions; competitive advantage; emerging markets; business information systems; illusion of control. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=103794 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbisy:v:32:y:2019:i:4:p:507-521

Access Statistics for this article

More articles in International Journal of Business Information Systems from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().