Impediments to Information Systems Replacement: A Calculus of Discontinuance

Abstract

Relatively little attention has been directed toward examining information system (IS) obsolescence and replacement despite the significant organizational resources invested in such systems. Current understanding is, as a result, both incomplete and relatively preliminary in nature. In particular, there is an important need for research that identifies impediments to system replacement. We therefore draw on protection motivation theory to formulate a model of IS discontinuance that explains how the replacement of obsolete systems is constrained by the risks associated with replacing these systems, the resources that have been invested in them, their complexity, and institutionalized norms that reflect dominant views concerning preferred IS solutions. Partial least squares (PLS) and covariance based structural equation modeling (SEM) of survey data obtained from 112 senior-level IS managers indicates that replacement risks contribute to decreased replacement intentions while system investments and complexity are linked to increased replacement risks. Institutional norms were also found to indirectly contribute to replacement risks through their positive influence on system investments. The proposed model of discontinuance calculus thus demonstrates the importance of managing risks, system complexity, and system investments to ensure that obsolete systems do not become a significant impediment to organizational effectiveness.

Key words and phrases:

• discontinuance calculus
• information system discontinuance
• institutional norms
• IS obsolescence
• IS replacement
• system complexity

Additional information

Notes on contributors

Brent Furneaux

Brent Furneaux ([email protected]; corresponding author) is an assistant professor at the University of Windsor’s Odette School of Business, Canada. He received his Ph.D. from York University’s Schulich School of Business and is pursuing research that seeks to understand better the obsolescence and discontinuance of information systems (IS), and the sustainability of technological innovations. His research interests also include the nature, role, and significance of theory within IS research and the mechanisms by which information systems deliver value to organizations and individual users. His research has been published in a wide range of journals including MIS Quarterly, Information and Management, DATABASE, and Communications of the AIS as well as numerous book chapters and international conference proceedings. Prior to his academic career, he worked and consulted extensively within the pharmaceutical and hospitality industries.

Michael Wade

Michael Wade ([email protected]) is a professor of innovation and strategy at the International Institute for Management Development, Lausanne, Switzerland, where he holds the Cisco Chair in Digital Business Transformation. He has published on digital business transformation, innovation, social media marketing, information systems strategy, e-commerce, and small and medium-size enterprise performance. His work has appeared in Strategic Management Journal, MIS Quarterly, the Communications of the ACM, and others. He has also published 8 books and more than 20 case studies, and he appears frequently in the media. His latest book, published in 2016, is Digital Vortex: How Today’s Market Leaders Can Beat Disruptive Competitors at Their Own Game.