Abstract

Despite an interest among public and private institutions of higher learning (IHL) in Malaysia in managing information technology investment agenda, there has been very little research that highlights the significant role of strategies and leadership challenges in higher education field which emphasize appropriate IT investment linked to knowledge management issues. In this paper, the researcher integrated theories of knowledge-based view, a resource-based view of the firm and a strategy to develop a suitable framework and model for information technology research; and empirically tested the research model within the Tallon's information technology investment dimension. In particular, the influence of knowledge management issues among academic leaders which have been neglected in Malaysian previous studies were examined. Data from the survey were examined using multiple regression analysis. Results indicate that strategy and information technology investment explain 38% of variance in predicting the effort of IHLs to develop appropriate knowledge management system. An important management implication of this paper is that it confirms that the greater usage of both strategy and information technology investment and knowledge management system in higher education would enhance the operational and strategic direction of IHLs. This paper further suggests that a greater utilization of specific information technology investment in crafting the corporate strategy both in the aspect of operational effectiveness (internally) and strategic positioning (externally) would help leaders of IHLs to pinpoint areas within the universities where knowledge management issues are creating value.

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