Potential Absorptive Capacity of State IT Departments:A Comparison of Perceptions of CIOs and ITManagers

Abstract

Public sector information technology (IT) departments are facing a myriad of challenges (e.g., budget cuts, service expansions, and political turmoil) in addition to the constant and rapid technological changes facing private sector firms. One way to meet these challenges may be through the development of the organization's absorptive capacity. Absorptive capacity refers to an organization's ability to recognize the value of new information, assimilate it, and use it to address organizational challenges associated with external change [6]. Few researchers have focused on absorptive capacity in public sector organizations. The purpose of this research is to ascertain how state IT departments, specifically Chief Information Officers (CIOs) and IT managers, view their external environment and their departments' ability to absorb new information. The findings are derived from a national survey of state IT departments in the United States and indicate that for CIOs and IT managers the external environment and organizational culture are significant in predicting potential absorptive capacity. These variables are significant for the IT managers as a group, but for the CIOs as a group, only external environment is significant. These findings may be used by state IT management to increase the organization's ability to be aware of, identify, and take effective advantage of new knowledge and innovative technologies.