Impact of chief information officer’s strategic knowledge and structural power on enterprise systems success

The purpose of this paper is to examine the impact of chief information officer’s (CIO’s) strategic knowledge and structural power on enterprise systems (ES) success in the context of systems usage.

Drawing upon knowledge-based view, this study links CIO’s strategic knowledge, structural power, ES assimilation and firm performance in an integral model. Sample data were collected in China and partial least squares technique was used to test the model.

Empirical results suggest that CIO’s strategic information technology (IT) knowledge, strategic business knowledge and structural power have significant influence on ES assimilation. While ES assimilation mediates the association between CIO’s strategic knowledge, CIO’s structural power and firm performance. Another interesting finding in the study is that the imbalance of CIO’s strategic business knowledge and strategic IT knowledge is negatively associated with ES assimilation.

This study enriches the extant literatures in IS leadership by showing the significant role of CIO’s knowledge balance and authority in promoting the assimilation of ES within the organization. The empirical findings can provide guidelines for the top executive to select a person who is familiar with both strategic business and IT knowledge to take charge of ES, also, to provide the person with appropriate structural power, in order to achieve the benefits of ES successfully.