Information technology and firm performance: Linking with environmental, strategic and managerial contexts
The performance impact of information technology (IT) investment is an important research topic that needs to take into consideration the role of key contextual factors. This study discussed and empirically tested the moderating effects of environmental dynamism, firm strategy, and CEO/CIO arrangement on the impact of IT investment on firm performance. The study sample consisted of major US corporations. The empirical results, based on a moderated regression modeling approach, provided preliminary evidence supportive of the hypotheses advanced in this paper. Specifically, IT investment appears to have a stronger positive impact on financial performance when there are greater environmental changes, more proactive company strategy, and closer CEO/CIO ties. According to our findings, companies considering IT investment should assess their environmental contexts, strategic directions, and top management team arrangement to allow CIO's a more strategic role.
information technology environmental dynamism company strategy economic performance ceo/cio relationship