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http://dx.doi.org/10.21219/jitam.2017.24.4.117

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

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)
Publication Information
Journal of Information Technology Applications and Management / v.24, no.4, 2017 , pp. 117-131 More about this Journal
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
Cloud Service; Real Option; Risk; Centralization; Empirical Research;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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