The Impact of Senior IT Executives on IT Capability

Abstract

This study introduces a causality-based framework of antecedents and consequences in order to examine the positive reciprocity between senior IT executives (sITes) and IT capable firms. More specifically we propose that: 1. There is a positive association between accrued sources of managerial power of sITes, such as structural and expert power, and a firm's ability to develop superior IT capability. 2. Firms that achieve such superiority are more likely to signal their appreciation and reward (promote) their sITes. 3. If sITes value this reward, they are more likely to stay longer with their firm. There is a positive association between continuity of an already successful IT leadership and a firm’s ability to sustain its IT superiority. Results based on panel data of 1326 large US firms from a wide spectrum of industries over a 13-year period (1997-2009) support our propositions. Empirical evidence validates our position that firms that want to achieve and sustain IT superiority need to create an organizational climate of positive reciprocity. Such an organization climate can only be developed over time and there is no short cut that competitors can take in order to replicate it