Information Technology, Decision-Making Mechanism and Selection of Decision-Making Mode

With the rapidly development and widely application of information technology among business organization, it results in the decrease of decision-making information and agency cost, thus has a deep impact on the choice of corporate decision-making mode. The advance of information technology leads to centralization or decentralization of organization? In this paper we have put forward to an analysis framework of information impact on decision-making information cost and agency cost to further analyze that information technology how to influence the choice to decision-making mode. The results of study show that the advance of information does not necessarily lead to a higher level of centralization and organizational centralization. The advance of information technology lead to centralization or decentralization depends on the purpose of information technology application among organization.