MOON, M. Jae

Does the perception of red tape constrain IT innovativeness in organizations? Unexpected results from a simultaneous equation model and implications - 2002

This study posits a theoretical model in which both red tape and information technology (IT) innovatativeness have reciprocal causal effects on one another. The primary model suggest that perceived red tape is not necessarily a constraining factor to IT innovativenness but could be a facilitating factor. High levels of perceived red tape might lead organizations toward innovative solutions to their organizational problems through information technology. This stydy also finds that top managers's risk-taking propensity (entrepreneurial leadership) and organizational capacity are positively associated with IT innovativeness helps organizations reduce the leve of red tape. These specific empirical results only emerge when a two-stage least squares model is estimated to account for the endogenous relationship between red tape and IT innovativeness