The Effect of Shadow IT Use on Employee Performance Evaluations

• In Event: AIS and Firm Performance

Abstract

The use of shadow IT (information technology systems not sanctioned or monitored by a company’s IT department) may be seen as either a form of organizational misbehavior or as a form of proactive and creative problem-solving. We examine whether these differing perceptions have implications for the subjective evaluation of subordinate performance. In our experiment, participants choose whether to award a bonus to an employee when different IT systems are used (normal vs. shadow IT) across different outcome levels (high vs. low outcomes). While some employee attributes are rated higher (lower) when outcomes are higher (lower), we find that employees using shadow IT are less likely to receive the bonus in both high and low outcome conditions, relative to employees using the normal IT system. Our results suggest that shadow IT usage is more likely to be viewed as organizational misbehavior and to cast a negative light on employee performance.

Authors

• Drew Allen, Brigham Young University

• Steven D. Smith, Brigham Young University

• David A Wood, Brigham Young University