Managerial influences on intraorganizational information technology use: A principal-agent model

Our current understanding of information technology (IT) usage does not explain why and how managers can influence organizational members to use a new IT. Drawing on principal-agent research, this paper develops and tests a model of intraorganizational IT usage that addresses this important issue. Managerial incentives and control are examined as important components of managerial influences, which are linked to IT usage via a principal-agent model (PAM). Seven research hypotheses are generated from this model and empirically tested using a laboratory experiment. Results of the study indicate that managers can promote IT usage within organizations by designing appropriate incentives and control structures such as monitoring and multiple-period contracts. However, the effectiveness of these structures will depend on potential users' ability to distinguish between various forms of incentives and control.