Management information systems and strategic performances: The role of top team composition

Abstract

Organizations adopt sophisticated management information systems, which provide top managers with an ample range of information to achieve multiple strategic performances. However, organizations differ in the extent to which they improve their performance. This paper analyzes the role of top management team in the relationship between management information systems and strategic performance. Using data collected from 92 top management teams, it analyses how different team compositions interact with a sophisticated management information system, and how this interaction affects strategic performances, which are focused on cost reduction and flexibility. The findings show how the effect of management information system on strategic performance (focused on flexibility) is moderated by top management team diversity.