Similarly, the presence of informational cascades in novel technology adoption is associated with higher perceived success of competitor adopters. The presence of informational cascades in novel technology adoption leads to the higher perceived advantage of information The current study finds that informational cascades occur in information technology adoption. The participants were 48 postgraduate students. Study using a 2 × 2 factorial design was conducted. Perceived success of competitor adopters and perceived relative advantage of information systems are proposed as cognitive variables. This study aims to investigate the roles of informational cascades, the type of technology on the individual state of cog nition and mimetic pressures to adopt e-commerce technology. Informational cascades is one of the interesting issues in information systems adoption research. However, as diffusion increases, organizations react more strategically to maintain competitive parity with rivals by imitating rival decisions. The results imply that organizations react conservatively to new platforms when they perceive less platform diffusion. The empirical results demonstrate that among the six herding mechanisms, new platform risk and organizational learning drives herding in the earlier stage of diffusion and new platform benefits and competitive pressure drives herding in the later stage of diffusion. To find which mechanisms work significantly in organizational IT decision-making in accordance with IT diffusion and rival precedence, we empirically test the model by splitting the samples according to the proportion of rivals that have already adopted innovations. We present a model of organizational open platform adoption that integrates six different theoretical mechanisms based on a technology-organization-environment framework that drives herding: network effect benefits, new platform benefits, new platform risk, organizational learning, mimetic pressures, and competitive pressures. Herding in open platform adoption decisions appears to prevail even when the systems adopted represent high risks with enterprise-wide impact. Herding, as a following strategy, together with mandatory requirements are significant motivations for information security investment. The findings of the study reveal that the ability and reputation of the security manager and the strength of the information about the security investment significantly motivate the security manager to discount his or her own information. The study was conducted using survey questionnaire data collected from 106 organizations in Finland. The present paper examines factors that influence information security managers’ investment decisions from the reputational herding perspective. Instead, information security managers may follow experts’ recommendations or the practices of other organizations. However, the intangible nature of information security investment prevents managers from applying cost- benefit analysis in practice. Our empirical results highlight the “let's follow others” strategy as an important alternative to cost–benefit analysis in terms of budgeting for infosec investment.Įconomic models of information security investment suggest estimating cost and benefit to make an information security investment decision. Infosec managers’ discounting of their own information, together with the strength of information that relates to infosec investment and mandatory requirements, motivates infosec investment. Based on a sample of 106 organizations in Finland, we find that infosec managers’ ability to accurately predict the benefit of infosec investment, as well as their reputations, have significant effects on motivating them to discount their own information. The present paper uses reputational herding theory to explain the decision made by infosec managers to use a “let's follow others” strategy in this context. While budgeting for infosec is a crucial resource allocation decision, infosec managers may choose to follow other fellow experts’ recommendations or baseline practices. Information security (infosec) is important for organizations.
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