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THE INFLUENCE OF A LEARNING CULTURE ON IT INVESTMENTS

process, they are more likely to be very cooperative throughout the project.

Table 2: Results of Factor Analysis

CC14 CC15 CC17 CC19 CC13 CC11 CC21 CC9 CC10 CC6 CC15 CC16 CC8 CC21 CC7 CC5 CC12 CC1 CC3 CC20 CC4 CHGMGMT4 CHGMGMT5 CHGMGMT3 CHGMGMT2 CHGMGMT1 TF1 TF2 TF3

Factor 1 0.8029 0.7586 0.7441 0.7236 0.6741 0.6653 0.6490 0.6379 0.6365 0.6242 0.6230 0.6078 0.6052 0.6017 0.5972 0.5960 0.5459 0.4510 0.4182 0.3646 0.3340

Factor 2

0.8073 0.7964 0.7786 0.7516 0.7181

Factor 3

0.7941 0.7237 0.7002

explained

29.89%

10.47%

4.53%

Cronbach's α

0.93

0.88

0.80

Note: CC (continuous-learning culture); CHGMGMT (change management); TF (technical flexibility).

Eigenvalue

% of variance

9.22

3.46

1.7700

Our third research question asked if organiza- tions with a learning culture adopt different technologies

from other organizations. The study shows that organiza- tional culture does affect the resulting types of technolo- gies chosen for adoption. Our data suggest that organiza- tions with a continuous-learning culture are more likely to install KM technologies. KM technologies can assist with the systematic collection, storage and dissemination of organizational knowledge. Past knowledge of employees can be stored and codified via KM technologies so that other organizational members can access this knowledge. Learning organizations are more aware of the importance of KM technologies and are eager to develop and imple- ment the technologies.

IMPLICATIONS

Our data reveal that learning organizations differ from other organizations in their decision process and outcomes when selecting IT investments. Organizations without a continuous-learning culture are less likely to consider change management issues, take into account technical flexibility, involve functional managers in IT investment decisions, or adopt KM technologies. It is well documented that organizations that inadequately con- sider how to manage change driven by technology imple- mentation, or change in technology driven by external forces, are more likely to fail. Given the criticality of these issues, IT projects in these organizations are more likely to be “at-risk.” These organizations do not incorporate in their IT decision process issues and practices that can maximize IT investments. Managers can use the continu- ous-learning culture scale used in this research as a self- assessment tool for their organization. Organizations low on this scale should carefully consider the process by which IT decisions are made as well as the outcome of these decisions. Our research highlights several key areas that should be evaluated.

First, mangers should evaluate whether they are adequately considering change management issues in their decision processes. Guha et al. 0 found that change man- agement is critical to project success and state “any sig- nificant business process change requires a strategic initia- tive where top managers act as leaders in defining and communicating a vision of change” (p. 121). IT success depends not only on technical issues but also on overcom- ing organizational resistance to change. Managers should consider these issues and their associated costs when mak- ing an IT investment decision.

Next, managers should assess whether issues re- garding technical flexibility are being sufficiently contem- plated. In today’s business environment technical flexibil- ity is critical to firm innovation and competitive perform- ance 0. Defining and understanding the firm’s IT architec-

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

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