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Mindful Engagement in Emerging IT Innovations : A Dynamic Optimization Model Considering Organizational Learning in IT Innovation Investment Evaluation

Title data

Häckel, Björn ; Lindermeir, Andreas ; Moser, Florian ; Pfosser, Stefan:
Mindful Engagement in Emerging IT Innovations : A Dynamic Optimization Model Considering Organizational Learning in IT Innovation Investment Evaluation.
In: The Database for Advances in Information Systems. Vol. 48 (2017) Issue 1 . - pp. 53-74.
ISSN 1532-0936

Official URL: Volltext

Project information

Project title:
Project's official title
Project's id
Projektgruppe WI Digital Finance
No information

Abstract in another language

Companies regularly have to decide whether, when, and to what extent to invest in IT innovations with different maturities. Together with mature IT innovations, companies should incorporate emerging IT innovations in their investment strategy. Emerging IT innovations have not yet been widely accepted. Thus, they are characterized by higher uncertainty about their future evolution but have potentially high long-term returns. To enable mindfulness in these decision-making processes, the literature emphasizes organizational learning through continuous engagement in IT innovations to enhance a company’s ability to understand, successfully adopt, and implement emerging IT innovations. IT innovation literature so far has focused on qualitative work, but lacks of quantitative models for the analysis of ex-ante investment decisions. Therefore, we develop a dynamic optimization model that determines the optimal allocation of an IT innovation budget to mature and emerging IT innovations, considering the impact of organizational learning. Based on our model, we examine relevant causal relationships by analyzing the influence of uncertainty, a company’s initial individual innovativeness, and the market’s average investment share on the optimal engagement. We find that companies should always invest at least a small portion of their budget in emerging IT innovations, regardless of their actual innovativeness. Our results offer new insights into the crucial determinants of investment decisions and provide the basis for future quantitative research on emerging IT innovations.

Further data

Item Type: Article in a journal
Refereed: Yes
Keywords: IT Innovation Investment Evaluation; Technology Adoption; Strategic Information Systems; Organizational Learning; Emerging IT Innovations; Simulation
Institutions of the University: Faculties > Faculty of Law, Business and Economics > Department of Business Administration
Research Institutions
Research Institutions > Affiliated Institutes
Research Institutions > Affiliated Institutes > Fraunhofer Project Group Business and Information Systems Engineering
Research Institutions > Affiliated Institutes > FIM Research Center Finance & Information Management
Faculties > Faculty of Law, Business and Economics
Result of work at the UBT: No
DDC Subjects: 000 Computer Science, information, general works > 004 Computer science
300 Social sciences > 330 Economics
Date Deposited: 09 Jan 2018 09:54
Last Modified: 20 Oct 2021 10:58