Journal of Information Technology Applications and Management

Korea Data Strategy Society (한국데이터전략학회)
권호 표지
DOI QR코드

DOI QR Code

Effect of Centralization in Decision Making Upon Real Option Utilization : Empirical Approach of Cloud Service Implementation in Korean Small & Medium Sized Firms

의사결정 집중화 수준과 불확실성이 실물옵션 활용에 미치는 영향에 대한 연구 : 국내 중소기업 클라우드 서비스 도입에 대한 연구

  • Kim, Taeha (College of Business and Economics, Chung-Ang University) ;
  • Nam, Seunghyeon (Department of Management Information Systems, Dongyang Mirae University) ;
  • Yang, Heedong (Ewha School of Business, Ewha Womans University)
  • Received : 2017.10.12
  • Accepted : 2017.12.19
  • Published : 2017.12.31
Download PDF
⟨ Previous Next ⟩

Abstract

We question whether Korean IT managers consider real options to reduce risks of cloud service implementation. This work investigates the impact of technology risk, relationship risk, economy risk, security risk upon the intention of IT managers to utilize abandon & expansion options. We also analyze moderation effect of centralization level of decision making between these risks and the utilization of real options. Using the survey questionnaire, we empirically find that technology risk, relationship risk and security risk have significant effect upon abandon option and technology risk, relationship risk, and economy upon expansion option. We also find the evidence that centralization level moderates some risks and the direction of moderation effect is to offset the effect of risks on intention to utilize real options.

Keywords

References

  1. Kim, J.-E. and Yang, H.-D., "The Effect of Cloud Service Risks on the Intention of Purchasing Real Options : Focusing on Public Cloud Service of Small and Medium- Sized Enterprises", Information Systems Review, Vol. 17 No. 1, 2015, pp. 117-140. https://doi.org/10.14329/isr.2015.17.1.117
  2. Kim, T. H., Yang, J. Y., and Yang, H. D., "Economic Evaluation of Cloud Computing Investment Alternatives", Journal of the Korea Industrial Information Systems Society, Vol. 16, No. 3, 2011, pp.121-135. https://doi.org/10.9723/jksiis.2011.16.3.121
  3. Nam, S. H., Kim, T. H., and Yang, H. D., "The Effect of Exogenous Risks Upon the Choice of Real Options in ERP Projects in Korea : An Empirical Approach", The Journal of Information Systems, Vol. 22. No. 3, 2013, pp. 43-58. https://doi.org/10.5859/KAIS.2013.22.3.43
  4. Park, K. M., Hwang, J. W., and Kwon, K.-H., "The Impact of Competitive Strategy, Decentralization, and the Application of IT on Performance", Journal of Strategic Management, Vol. 8, No. 1, 2005, pp. 113-135.
  5. Korea Communications Commission, Guidebook of Smart-Work Introduction for Firms, KCC & NIA, 2011.
  6. Suh, J.-H. and Chang, S.-G., "Cloud Service Adoption among Small-Medium Sized Firms", Proceedings of KORS, 2012, pp. 2306-2324.
  7. Benaroch, M. and Kauffman, R., "justifying electronic banking network expansion using real options analysis", MIS Quarterly, Vol. 24 No. 2, 2000, pp. 197-225. https://doi.org/10.2307/3250936
  8. Benaroch, M., "Managing information technology investment risk : A real options perspective", Journal of Management Information Systems, Vol. 19 No. 2, 2002, pp. 43-84.
  9. Benaroch, M. and Lichtenstein, Y., "Real options in information technology risk management : An empirical validation of riskoption relationships", MIS Quarterly, Vol. 30, No. 4, 2006, pp. 827-864. https://doi.org/10.2307/25148756
  10. Fichman, R. G., "Real Options and IT Platform Adoption : Implications for Theory and Practice", Information Systems Research, Vol. 15, No. 2, 2004, pp. 132-154. https://doi.org/10.1287/isre.1040.0021
  11. Gartner, Gartner Says Worldwide Public Cloud Services Market to Grow 18 Percent in 2017, https://www.gartner.com/ newsroom/id/3616417, February 22, 2017.
  12. Digital Daily, "Cloud Adoption Effect of Korean Manufacturing Firms", http://www. ddaily.co.kr/news/article.html?no=161166, 2017/10/16.

Cited by

  1. ERP 서비스 도입 시 국내 물류기업의 실물옵션 활용 수준에 대한 실증 연구 vol.26, pp.6, 2017, https://doi.org/10.21219/jitam.2019.26.6.119
  2. 온라인 쇼핑몰 챗봇 사용자의 활용의도에 영향을 미치는 요인에 대한 실증 연구 vol.21, pp.4, 2017, https://doi.org/10.15813/kmr.2020.21.4.011
  3. 외산 ERP와 국산 ERP를 도입한 국내 중소 물류기업간의 위험 관리 비교 연구 vol.19, pp.6, 2017, https://doi.org/10.9716/kits.2020.19.6.119