Management Emotion and Firms’ IT Budget: A View of the Behavioral Theory of the Firm

Abstract

The antecedents of IT investment decisions are to large extent a “blind spot” in the literature. The extant research assume managers are rational in their IT budgeting decision. With a unique dataset combining multiple data sources, this research attempts to empirically test the influences of management emotion on level of firms’ IT budget in the framework of the Behavioral Theory of the Firm (BTOF). The findings of this paper provide insights of the under-researched human affective antecedent of firms’ IT budget.