Abstract
Using the technology-organization-environment framework, this study examines three antecedents of digital investment as well as the influence of digital investment on IT innovation. The empirical evidence from a sample of Chief Information Officers (CIO)from US firms suggests that IT competence, competitive pressure and organizational agility are key factors that influence digital investment. Furthermore, the findings confirm the positive relationship between digital investment and IT innovation. Contrary to prior research, IT competence did not have a significant relationship with IT innovation. However, the results revealed that digital investment mediated the relationship between IT competence and IT innovation.
Highlights
The emergence of new digital technologies and innovations has dominated our economic and business landscape, creating new opportunities for companies to integrate, exploit and leverage these new digital solutions and innovations [1,2]
Given that each of the survey questionnaires was completed by a single respondent, it was important to assess the potential of common methods bias
Using the TOE framework, a research model explaining the antecedents and consequences of digital investment was tested using a survey of 157 Chief Information Officers (CIO) from firms across the U.S Consistent with the proposed model, the study finds that information technology (IT) competence, competitive pressure, and organizational agility are the key drivers of digital investment
Summary
The emergence of new digital technologies and innovations has dominated our economic and business landscape, creating new opportunities for companies to integrate, exploit and leverage these new digital solutions and innovations [1,2]. Companies are facing increased pressure to make digital investment a strategic priority and to transform these investments into innovative business processes, and new products and business models [3,4]. Such digital investments include new technologies such as the internet of things (IoT), artificial intelligence (AI), big data and analytics, cloud, mobile and social media [5]. Many innovations in products, services and business models are attributed to the enabling role of new digital technologies such as social media and mobile platforms, the cloud, embedded devices, big data, analytics, and artificial intelligence. This strategic emphasis was bolstered by the findings from the same study that 51% of the C-level executives noted that the subsequent two years’ focus was aimed at investing in digital initiatives and new technologies that would drive digitalization and data analytics capabilities
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