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THE INFLUENCE OF A LEARNING CULTURE ON IT INVESTMENTS

IT INVESTMENT DECISION

H1

Issues Considered:

Change Management

H2

Technical Flexibility

Continuous-Learning Culture

Managerial Involvement:

H3

Functional Managers Included

Technology Choices:

H4

KM Technologies Adoption

Figure 1: Research Model –Continuous-Learning Culture’s

Research has revealed that change management is most critical to IT project success 0. A manager once commented: “It takes three months of really hard work and three months of just hand holding…. They appreciate the three months of hand holding” 0. Grover et al. 0 found that change management is critical to success when busi- ness processes are radically changed. Their data also sug- gested that not recognizing the need for managing change was a significant problem.

ous-learning culture understand the importance of manag- ing change and will spend more time and resources con- sidering change management issues than those without such a culture.

H1: There is a direct positive relationship be- tween an organization’s continuous-learning culture and change management consideration in the IT decision- making process.

Change management practices can be facilitated by an organizational culture characterized by willingness to share knowledge, balanced network relationships and a capacity to learn 0. By definition, learning organizations must be adept at handling change because learning man- dates transformations in mental models and necessitates corresponding changes in attitudes and/or behaviors. Therefore, we propose that organizations with a continu-

Technical flexibility is defined as the capability of a firm to respond quickly to environmental changes by reconfiguring IT. Flexibility is a critical component of IT infrastructure because of the ever-changing business envi- ronment 0. Since IT is a vehicle to reduce uncertainty, adapt to change and increase problem-solving capability of an organization, it can assist in interpreting environ-

Journal of Information Technology Management Volume XVI, Number 3, 2005

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