Why do managers postpone investments in information technology?a case study

Rodrigo Fernandes Malaquias and Alberto Luiz Albertin

RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), 2011, vol. 15, issue 6, 1120-1136

Abstract: The study conducted by Moraes, Bobsin and Lana (2006), involving the seven most specific and relevant journals in the field of Information Technology (IT)from January 2000 to December 2005 showed that there is a unanimous fact for researchers: the investments in IT have a positive and significant effect on company performance. Faced with results like this, and knowing the benefits that IT can bring to organizations, the following research question is posed: why do managers postpone investments in IT? This was the guiding question of this work, together with the analysis of the potential causes and consequences of decision postponement. The question was answered by a case study and the main results indicate that the existence of employees who are highly trusted by and in the confidence of managers, such as members of the same family, may be one of the factors that lead to the postponement of IT investments. This postponement may occur because of the absence of management conflicts; therefore, the need for additional management tools is not perceived.

Date: 2011
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