Chief Information Officers: Organizational Control and Company Characteristics

Using a sample of 198 Fortune 500 companies, explores the differential effects of a number of characteristics, grounded in a broad agency theory framework, on the decision to create a chief information office (CIO) position, where the CIO acts as an informational control agent. Companies were more likely to create a top CIO position if: (1) top management′s equity were large; (2) the company had a large number of outside directors on the board; (3) the company′s technological level was advanced. Examines the role of the CIO as managing information technology as it pertains to enhancing the control function of management.