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Effects of strategic information systems on competitive strategy and performance

Effects of strategic information systems on competitive strategy and performance PurposeThis study argues that strategic information systems (SISs) are necessary for organizations’ survival and corporate performance in turbulent economic environments. Applying Miles and Snow’s strategy typology, the purpose of this paper is to explore how SIS supports business strategy and corporate performance.Design/methodology/approachThis study uses quantitative survey data from 389 Brazilian companies during economic crises and analyzes them using structural equation modeling.FindingsThere is strong evidence that SIS promotes capacity and flexibility to create competitive strategies in response to environmental changes. SIS significantly and positively predicts firms’ use of prospector strategies, reducing the need to sacrifice efficiency for innovation. SIS can predict corporate performance more strongly than firms’ strategic orientations can.Practical implicationsThe results provide organizations insights on how SIS enables strategic planning processes to create competitive strategy and improve performance during economic turbulence.Originality/valueThis research demonstrates SIS’s positive effects during economic turbulence on competitive strategy and performance, revealing that corporate performance is influenced more by SIS (strategic process) than strategic orientation (content). Hence, this study fills a research gap in the information systems strategy literature by contributing new insights about SIS. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Productivity and Performance Management Emerald Publishing

Effects of strategic information systems on competitive strategy and performance

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1741-0401
DOI
10.1108/IJPPM-07-2017-0166
Publisher site
See Article on Publisher Site

Abstract

PurposeThis study argues that strategic information systems (SISs) are necessary for organizations’ survival and corporate performance in turbulent economic environments. Applying Miles and Snow’s strategy typology, the purpose of this paper is to explore how SIS supports business strategy and corporate performance.Design/methodology/approachThis study uses quantitative survey data from 389 Brazilian companies during economic crises and analyzes them using structural equation modeling.FindingsThere is strong evidence that SIS promotes capacity and flexibility to create competitive strategies in response to environmental changes. SIS significantly and positively predicts firms’ use of prospector strategies, reducing the need to sacrifice efficiency for innovation. SIS can predict corporate performance more strongly than firms’ strategic orientations can.Practical implicationsThe results provide organizations insights on how SIS enables strategic planning processes to create competitive strategy and improve performance during economic turbulence.Originality/valueThis research demonstrates SIS’s positive effects during economic turbulence on competitive strategy and performance, revealing that corporate performance is influenced more by SIS (strategic process) than strategic orientation (content). Hence, this study fills a research gap in the information systems strategy literature by contributing new insights about SIS.

Journal

International Journal of Productivity and Performance Management – Emerald Publishing

Published: Nov 19, 2018

References

  • Business strategy and firm performance: a multi-industry analysis
  • Information systems use as a strategy practice: a multi-dimensional view of strategic information system implementation and use