Senior executives' use of information technology

Abstract

There is a paucity of literature focusing on the ingredients for effective top management, i.e. senior executives, use of Information Technology (IT). In practice, many senior executives argue that they do not see a connection between what IT does and their tasks as executives. Based on the Technology Acceptance Model (TAM), a research model was developed and tested to assess the factors that influence the use of IT by senior executives. A dedicated system supporting the task of a senior executive, an Executive Information System (EIS), was used as the IT tool under review. A large number of external variables were identified and hypothesized, influencing the core elements of TAM. To test the research model using structural equation modeling, cross-sectional data was gathered from eighty-seven senior executives drawn from twenty-one European-based multinationals. The results supported the core TAM and found only a small number of antecedent variables influencing actual use, either directly or indirectly. In addition to identifying the external factors, three of these key variables are under managerial control. They can be used to design organizational or managerial interventions that increase effective utilization of IT.

Introduction

The primary task of senior executives is to manage and control their business. As Mintzberg [28] indicates “In almost every serious study of managerial work the formal information — in other words, information capable of being processed in a computer — does not play a dominant role. Oral information — much of it too early or too ‘soft’ to formalize, such as gossip and hearsay — and even nonverbal information forms a critical part of every serious managerial job”. Davenport [8] argues as one of his ‘information facts of life’ that “managers prefer to get information from people rather than computers; people add value to raw information by interpreting it and adding context”. One could assume, therefore, that it would be in the interests of senior executives to receive adequate information for decision-making rather than be knowledgeable about Information Technology (IT), the main management information tool. Also, one could argue that senior executives need not be involved with how IT is used in an organization, but rather with its deployment.

Senior executives are constantly being told that IT is the key to the success of the business, yet the so-called IT productivity paradox leads managers to believe that investments in IT are reaching unprecedented levels with no commensurate increase in productivity. To measure whether IT investments deliver value, we must assume the technology is being adopted and properly used. Few organizations get full value from their IT investments, either because people have not learned how to use technology well or because managers have not been taught how to manage its benefits [31]. A reason for the poor return on IT investments could be the lack of senior executive involvement in using IT and its applications. Consequently, they have not been able to experience the benefits at first hand. As a result, attitudes remain unchanged.

It could be argued when investigating the acceptance and use of IT that senior executives do not warrant special attention, especially because they form only a small percentage of the total user population. However, recent studies indicate that these individuals should be treated differently [16], [22], [36]. What distinguishes senior executives' work in particular is the willingness to adopt and use IT, the role model position, the confidentiality and integrity of the information they have access to, and their external orientation, and, hence, the IT tools they require. Senior executives as a rule have limited time to make themselves familiar with all features of any of the information technologies. They are basically indifferent regarding the IT tool as long as they receive the information they need for their decision-making process. It is therefore likely that past studies aimed at assessing the factors that influence end-user adoption of IT, will not hold per se for these executives. Also, their position and role in the organization and the nature of their duties and social/organizational relationship differs from the other members of the company.

In spite of the interest in IT in recent years, little is known about the forces that influence its use or the factors determining senior executive resistance to IT [41].Most research of IT acceptance and use does not distinguish senior executives as a separate group. Moreover, to date, most studies use generic tools as word processors or e-mail systems as IT tools under review. This study sought to identify key factors and relationships likely to influence the use of IT by senior executives, in which IT is restricted to the role of a dedicated tool for senior executives, in other words an Executive Information System (EIS). An EIS was introduced as a support tool for senior executives at the beginning of the eighties. To make effective use of an EIS, managers must accept it, learn how to interact directly with aspects of the hardware and software, and adapt it to their requirements.

The study had a number of objectives:

• What are the major factors that influence senior executives' use of IT, and in particular an EIS?

• Which of these factors influence the actual use of an EIS, either directly or indirectly through user beliefs and attitude?

• Is there a parsimonious model to predict senior executives' use of IT?

Grounded in a well-established theory, the study used a heterogeneous sample of multinational companies that can be expected to have ample experience with IT. Investigating the antecedents of IT acceptance and use will help in identifying what interventions are required to increase the use of IT. Effective and increased use of managerial IT tools will give senior executives improved access to better information, leading in turn to more effective decision-making in their jobs.

The remainder of this paper is organized as follows. Section 2 begins with an elucidation of the Technology Acceptance Model. This will be followed by the research model and hypotheses, which are based on the TAM. Then the methodology of the study is described, followed by the results of our analysis. Section 2 introduces a practical application of the results. Finally, the paper ends with a discussion and conclusion.