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Institutional Factors in Information Technology Innovation

Author

Listed:
  • John Leslie King

    (CRITO, University of California, Irvine, Irvine, California 92717-4650)

  • Vijay Gurbaxani

    (University of California, Irvine, Irvine, California 92717)

  • Kenneth L. Kraemer

    (University of California, Irvine, Irvine, California 92717)

  • F. Warren McFarlan

    (Harvard Business School, Soldiers Field, Boston, Massachusetts 02163)

  • K. S. Raman

    (National University of Singapore, Singapore 0511)

  • C. S. Yap

    (National University of Singapore, Singapore 0511)

Abstract

Innovation in information technology is well established in developed nations; newly industrializing and developing nations have been creating governmental interventions to accelerate IT innovation within their borders. The lack of coherent policy advice for creating government policy for IT innovation signals a shortfall in research understanding of the role of government institutions, and institutions more broadly, in IT innovation. This paper makes three points. First, long-established intellectual perspectives on innovation from neoclassical economics and organization theory are inadequate to explain the dynamics of actual innovative change in the IT domain. A broader view adopted from economic history and the new institutionalism in sociology provides a stronger base for understanding the role of institutions in IT innovation. Second, institutional intervention in IT innovation can be constructed at the intersection of the influence and regulatory powers of institutions and the ideologies of supply-push and demand-pull models of innovation. Examples of such analysis are provided. Third, institutional policy formation regarding IT innovation is facilitated by an understanding of the multifaceted role of institutions in the innovative process, and on the contingencies governing any given institution/innovation mix.

Suggested Citation

  • John Leslie King & Vijay Gurbaxani & Kenneth L. Kraemer & F. Warren McFarlan & K. S. Raman & C. S. Yap, 1994. "Institutional Factors in Information Technology Innovation," Information Systems Research, INFORMS, vol. 5(2), pages 139-169, June.
    • Handle: RePEc:inm:orisre:v:5:y:1994:i:2:p:139-169
    DOI: 10.1287/isre.5.2.139
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