ABSTRACT:

This study analyzes the relationship between organizational variables and whether an organization charges its users for IS services or treats IS costs as overhead. The organizational variables are macro level variables that have been shown in prior studies to be related to IS management. The variables are centralization of IS structure, IS support of users, integration of IS and organizational goals, organization size, IS budget, and IS planning experience. A self-administered questionnaire was mailed to 700 information systems managers chosen at random from a list of 3,000 IS executives. The results of the analysis indicate that organizations using a chargeback approach are more likely to have decentralized IS structures, more apt to give more support to users, and more likely to have better integration of IS with organizational goals. The results also suggest that large companies and companies with bigger IS budgets and longer years of planning are more likely to use a chargeback approach.