Relation of CIO background, IT infrastructure, and economic performance

The literature of the past three decades has not provided a consistent picture of payback for IT investment. Firm strategies and infrastructure play a part in determining return on investment and, in recent years, chief information officer (CIO) characteristics have been cited as essential factors in ensuring economic returns for IT investment. In our study we related CIO background and attitude toward IT investment to the objective measures of a firmʹs performance. The financial measures tended to be higher when the CIO was from IT rather than general management, however, an IT manager in a firm that had a strategic orientation to IT rather than a utilitarian one was more likely to have higher financial performance. Thus, although a CIO should have a technological background, the CIO who has a strategic rather than utilitarian orientation is more likely to help in forming a highly profitable company.