The Impact of Shadow IT Systems on Perceived Information Credibility and Managerial Decision Making
Year: 2017
Type: article
Abstract: Business trends show that more and more employees are creating shadow IT systems — IT systems that are not sanctioned or monitored by the IT department. This paper examines how the use of shadow IT in product costing impacts managers’ perceptions of information credibility and managerial decision-making. Using two experiments, we find that participants view information from shadow IT systems as less credible and they are less impacted by and less willing to rely on costing reports produced from shadow IT systems versus non-shadow IT systems. We also find that although participants are concerned about the credibility of shadow IT systems, they are not more likely to find simple mathematical errors embedded in shadow IT costing reports relative to non-shadow IT reports. This suggests that although concerned about shadow IT systems, managers still do not exercise sufficient care in evaluating reports created using these systems. The results of our study should prove informative as shadow systems become more prevalent in organizations.
Source: Accounting Horizons
DOI: 10.2308/acch-51737
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3124208183