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Decentralizing the is Function: Resources and Locus of Decisions

The information systems (IS) function in an organization consists of five resources: hardware, software, data, personnel, and network. This paper examines if decision authority about IS resources is decentralized concurrently with these resources. To examine this issue, 469 top computer executives from the Fortune 1000 companies were surveyed. Data analysis indicated that organizations with a centralized IS function had centralized both the IS resources and the decision authority with respect to the resources. However, organizations with a decentralized IS function had decentralized some of the resources but had centralized the decision authority with respect to the resources. This paper discusses some of the reasons for the incongruent results and provides theoretical background related to the issue.