Abstract
Many studies have been investigating how IS (information systems) can help build a corporate performance, but there are less research investigating how IS contributing to performance by mediating business strategy in uncertain environments. To address this question, the present study seeks to empirically explore the relationship between strategic information systems and corporate performance by mediating business strategy. Partial Least Squares-Path Modeling (PLS-PM) confirmed SIS's strong influence on strategy, and full strategy mediation on the relationship between SIS and performance. SIS showed greater performance contribution in high heterogeneity environments than in lower ones, and small and medium-sized firms have 50% more contribution of the effects of strategy on performance than large firms. The post-hoc-analysis study did not identify the presence of heterogeneity segmentation not observed by Finite Mixture (FIMIX-PLS). Through fuzzy set qualitative comparative analysis (fsQCA), non-linear causality was verified in the strategy in certain solutions by the variables of large firms, with intensive use of SIS and high environmental heterogeneity. Moreover, the study demonstrated that SIS’s strategic alignment has strong effects and explanation power on performance and may suggest that it is an indissociable resource for the strategy-as-practice effectiveness. Hence, the study contributed to understanding how SIS create value to strategy-as-practice approach under environmental turbulence to impact corporate performance.
Highlights
Over the years environmental turbulence has challenged organizations to develop business strategies that impact on corporate performance (Whittington, Yakis-Douglas, Ahn, & Cailluet, 2017)
The strategy evolves to the strategy-as-practice approach, which through IT/IS enables organizations to address the challenges of environmental uncertainty (Jarzabkowski & Kaplan, 2015; Whittington et al, 2017)
Environmental uncertainty has been extensively investigated in Business strategy (BS) theories (Grant, 2003; Lumpkin & Dess, 2001; Mintzberg et al, 2009; Schilke, 2014; Whittington et al, 2017; Yoshikuni & Albertin, 2018b) as contextual factor influencing the use of IS applications as a mechanism that enables the firm to face the complexity, dynamism, uncertainty and unpredictability of social, political and economic systems (Merali et al, 2012; Newkirk & Lederer, 2006; Ray, Wu, & Konana, 2009; Yayla & Hu, 2012), characterized by dynamism, heterogeneity and hostility (Miller & Friesen, 1983)
Summary
Over the years environmental turbulence has challenged organizations to develop business strategies that impact on corporate performance (Whittington, Yakis-Douglas, Ahn, & Cailluet, 2017). Q. Chen, Mocker, Preston, & Teubner, 2010; Leidner, Lo, & Preston, 2011) incorporated into the routines of BS (Arvidsson, Holmström, & Lyytinen, 2014; Newkirk & Lederer, 2006; Yoshikuni & Albertin, 2018b), enabling it as strategy-as-practice (Marabelli & Galliers, 2017; Peppard, Galliers, & Thorogood, 2014; Whittington, 2014; Yoshikuni & Albertin, 2018a) on the effects of turbulence and environmental uncertainty The study sought to fill open gaps in the IS strategy literature and n Practice theory, contributed with new insights into the relationship between SIS and BS and performance, enabling strategy-as-practice in organizations and examining the implications of environmental uncertainty of dynamism, heterogeneity and hostility separately and for high and low levels. A theoretical approach incorporating previous knowledge was employed, and contributing to the cumulative research flow in the IS field
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