The Effect of IS-Innovation Strategy Alignment on Corporate Performance: Investigating the Role of Environmental Uncertainty by Heterogeneity

Abstract

The study investigates how the alignment at the processing levels between information systems (IS) strategy, through strategy-as-practice approach, and innovation influences corporate performance (CP) under environmental uncertainty from 856 Brazilian firms by PLS-SEM. The results indicated that all approaches of alignment between IS strategy and innovation have strong influences on CP. The alignment with ambidextrous innovation had a 62% higher contribution on CP than alignment between exploitative innovations. Additionally, exploitative innovations had positive effects on CP under high hostility environments; and explorative and ambidextrous innovations had positive large and strong effects on CP under high dynamic environments.