Leveraging IT for Business Innovation: Does the Role of the CIO Matter?

Abstract

The evolving role of Information Technology (IT) in business innovation places increasing emphasis on the role of the Chief Information Officer (CIO). Yet, the role of the CIO in business innovation is understudied in the extant literature. Drawing on organizational theory of boundary spanning leadership, we posit that the CIO’s cross-functional role pertaining to entities and functions outside the IT organization help explain the firm’s propensity for IT-enabled business innovation. Our large-sample empirical analysis of U.S. firms largely supports our theoretical propositions. We empirically find that IT-enabled business innovation is more likely when the CIO reports to the Chief Executive Officer, has more interactions with the firm’s customers and is more involved in new product development. This study contributes to our understanding of the role of the CIO in IT-enabled business innovation and provides implications for practice.

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