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In a comprehensive literature review, we identified 21 different terms used for Shadow IT related concepts. This variety makes it difficult to identify related research and build upon it. To address this ambiguity, we reduce the different terms to six distinct concepts by developing a taxonomy and examining their relation¬ships. We do so by using a rigorous iterative methodology to identify common characteristics and to classify terms along them. By clustering the results, we derive and visualize the taxonomy. The identified concepts are Feral Practices, Workarounds, Shadow IT, Shadow Systems, Un-enacted Projects, and Shadow Sourcing. We elaborate on the concepts along their characteristics and clearly define and delimit them. As a result, we create a guide for their usage, increase search- and comparability, and unify existing knowledge.
Research on Shadow IT is facing a conceptual dilemma in cases where previously “covert” systems developed by business entities are integrated in the organizational IT management. These systems become visible, are thus not “in the shadows” anymore, and subsequently do not fit to existing definitions of Shadow IT. Practice shows that some information systems share characteristics of Shadow IT but are created openly in alignment with the IT organization. This paper proposes the term “Business-managed IT” to describe “overt” information systems developed or managed by business entities and distinguishes it from Shadow IT by illustrating case vignettes. Accordingly,our contribution is to suggest a concept and its delineation against other concepts. In this way, IS researchers interested in IT originated from or maintained by business entities can construct theories with a wider scope of application that are at the same time more specific to practical problems. In addition, the terminology allows to value potentially innovative developments by business entities more adequately.