The Impact of Digital Innovation on Path-Dependent Decision-Making: The Mediating Role of Risk Propensity and Opportunity-Threat Perception

Madeleine Rauch, Matthias Wenzel, Heinz Theo Wagner

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

Abstract

While the information systems literature highlights the business opportunities that digital innovation provides, the management literature foregrounds the challenges of path-dependent decision-makers face to exploit such potential. To bring these views together, we examine the impact of digital innovation on path-dependent decision-making. For this purpose, we conducted an experiment with 148 practitioners. Our study indicates that digital innovation has a negative impact on path-dependent decision-making, thus leading path-dependent decision-makers to deviate from their decision path. Furthermore, our results suggest that risk propensity and opportunity-threat perception mediate this relationship. Our study complements the literature on digital innovation with insights into the challenges of incumbents, adds to the literature on path dependence by shedding light on the behavior of path-dependent decision-makers in the face of digital innovation, and demonstrates how scholars can examine phenomena on digital innovation and path dependence with experiments.

Original languageEnglish
Title of host publicationICIS 2017 Proceedings
Number of pages20
Place of PublicationAtlanta, GA
PublisherAssociation for Information Systems
Publication date2018
Article number6
ISBN (Print)9780996683159
Publication statusPublished - 2018
Externally publishedYes
Event38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017: Transforming Society with Digital Innovation - Coex Convention Center , Seoul, Korea, Republic of
Duration: 10 Dec 201713 Dec 2017
Conference number: 38
https://icis2017.aisnet.org/

Conference

Conference38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017
Number38
LocationCoex Convention Center
Country/TerritoryKorea, Republic of
CitySeoul
Period10/12/201713/12/2017
Internet address
SeriesProceedings of the International Conference on Information Systems
ISSN0000-0033

Keywords

  • Decision making/makers
  • Digital business model
  • Digital innovation
  • Organizational strategies
  • Risk
  • Strategic path

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