Procedural Justice and the Planning of Information Systems in Multinational Firms

Information systems planning research has not adequately considered the theory of procedural justice in understanding the effectiveness of planning in multinational firms. The theory suggests that when subsidiary managers feel that they are being treated more fairly by the parent company, they are more committed, exert more effort, and thus perform better. A postal survey of 131 chief information officers of U.S. subsidiaries of multinational firms collected data to test hypotheses based on the theory. Data analysis revealed that autonomy for IS planning significantly predicted feelings of procedural justice. Higher feelings of procedural justice predicted greater subsidiary commitment to IS planning which in turn predicted more effective planning. These findings thus lend support to the theory, and suggest that parent managers consider delegating greater autonomy to the managers of their foreign subsidiaries.