TY - GEN
T1 - Executive compensation and strategic risk- taking in IT
AU - Xue, Ling
AU - Ray, Gautam
AU - Zhao, Xia
PY - 2013/12/1
Y1 - 2013/12/1
N2 - This study examines how the risk-taking incentive of top executives drives the strategic risk-taking in corporate IT implementation. We use the risk incentive provided in executive compensation to capture top executives' risk-taking incentive, and develop measures of aggressive IT implementation to capture strategic risk-taking in IT implementation. Our analysis provides empirical evidence that the risk incentive of executive compensation drives aggressive IT implementation. We also consider how firm diversification may influence the relationship between the risk incentive of top executives and aggressive IT implementation. Our finding indicates that the relationship between the risk incentive of top executives and aggressive IT implementation is stronger in focal firms' primary industries than in their secondary industries, which suggests that diversification supports IT risk taking by providing riskseeking executives more opportunities in the areas that are less familiar to them.
AB - This study examines how the risk-taking incentive of top executives drives the strategic risk-taking in corporate IT implementation. We use the risk incentive provided in executive compensation to capture top executives' risk-taking incentive, and develop measures of aggressive IT implementation to capture strategic risk-taking in IT implementation. Our analysis provides empirical evidence that the risk incentive of executive compensation drives aggressive IT implementation. We also consider how firm diversification may influence the relationship between the risk incentive of top executives and aggressive IT implementation. Our finding indicates that the relationship between the risk incentive of top executives and aggressive IT implementation is stronger in focal firms' primary industries than in their secondary industries, which suggests that diversification supports IT risk taking by providing riskseeking executives more opportunities in the areas that are less familiar to them.
KW - Diversification
KW - Executive compensation
KW - Information technology
KW - Managerial incentives
KW - Risk taking
UR - http://www.scopus.com/inward/record.url?scp=84897741195&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84897741195&partnerID=8YFLogxK
M3 - Conference contribution
AN - SCOPUS:84897741195
SN - 9781629934266
T3 - International Conference on Information Systems (ICIS 2013): Reshaping Society Through Information Systems Design
SP - 1542
EP - 1557
BT - International Conference on Information Systems (ICIS 2013)
T2 - International Conference on Information Systems, ICIS 2013
Y2 - 15 December 2013 through 18 December 2013
ER -