The effect of environmental uncertainty and strategic applications of IS on a firm’s performance

Abstract

In our study, we empirically examined the relationships among perceived environmental uncertainty (PEUN), the level of the strategic applications and the facilitators of IS strategic alignment. Using a systems approach, we also showed some ways that these relationships impact the performance of a firm. Apparently, PEUN has an indirect effect on IS strategic applications through the facilitators of alignment. An uncertain environment, a high level of strategic applications and well-arranged facilitators of alignment can contribute more to the improvement of performance than in a less uncertain or stable environment. Therefore, the benefits of a high level of strategic applications can still be realized in a competitive and uncertain environment. However, when the environment is stable (low PEUN), an excessively low level of strategic applications may decrease a firm’s performance.