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How information systems strategy moderates the relationship between business strategy and performance

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  • Martinez-Simarro, David
  • Devece, Carlos
  • Llopis-Albert, Carlos

Abstract

This study analyzes the moderating effect of information systems (IS) strategy on the relationship between a firm's business strategy and organizational performance. From the resource-based view, the study analyzes the support that an innovative IS strategy and a conservative IS strategy can provide to low-cost and differentiation business strategies. Results of analysis for a sample of 166 firms from the Spanish food industry demonstrate the effectiveness of innovative IS strategies in firms with low-cost business strategies. In contrast, innovative IS strategies fail to compensate the risk of innovation in marketing activities and consequently in business strategies that rely on image differentiation. The relationship between IS strategy and business strategies that rely on innovative differentiation is ambiguous, but for the food industry, the innovative IS strategy is counterproductive. Conclusions provide guidance on strategic decision-making for developing information systems in firms according to business goals.

Suggested Citation

  • Martinez-Simarro, David & Devece, Carlos & Llopis-Albert, Carlos, 2015. "How information systems strategy moderates the relationship between business strategy and performance," Journal of Business Research, Elsevier, vol. 68(7), pages 1592-1594.
    • Handle: RePEc:eee:jbrese:v:68:y:2015:i:7:p:1592-1594
    DOI: 10.1016/j.jbusres.2015.01.057
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    References listed on IDEAS

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    1. Seggie, Steven H. & Kim, Daekwan & Cavusgil, S.Tamer, 2006. "Do supply chain IT alignment and supply chain interfirm system integration impact upon brand equity and firm performance?," Journal of Business Research, Elsevier, vol. 59(8), pages 887-895, August.
    2. Yiannis E. Spanos & Spyros Lioukas, 2001. "An examination into the causal logic of rent generation: contrasting Porter's competitive strategy framework and the resource‐based perspective," Strategic Management Journal, Wiley Blackwell, vol. 22(10), pages 907-934, October.
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    Cited by:

    1. Ashrafi, Amir & Zareravasan, Ahad, 2022. "An ambidextrous approach on the business analytics-competitive advantage relationship: Exploring the moderating role of business analytics strategy," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    2. Adilson Carlos Yoshikuni & José Eduardo Ricciardi Favaretto & Alberto Luiz Albertin & Fernando de Souza Meirelles, 2022. "How can Strategy-as-Practice Enable Innovation under the Influence of Environmental Dynamism?," RAC - Revista de Administração Contemporânea (Journal of Contemporary Administration), ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração, vol. 26(1), pages 200131-2001.
    3. Carlos Devece & Daniel Palacios-Marqués & D. Enrique Ribeiro-Soriano, 2021. "IT-based strategy, capabilities, and practices: crowdsourcing implementation in market-oriented firms," Review of Managerial Science, Springer, vol. 15(1), pages 15-32, January.
    4. Linton, Gabriel & Kask, Johan, 2017. "Configurations of entrepreneurial orientation and competitive strategy for high performance," Journal of Business Research, Elsevier, vol. 70(C), pages 168-176.
    5. Natasa Djalic & Milan Nikolic & Mihalj Bakator & Zivko Erceg, 2021. "Modeling the Influence of Information Systems on Sustainable Business Performance and Competitiveness," Sustainability, MDPI, vol. 13(17), pages 1-24, August.
    6. Adilson Carlos Yoshikuni & José Eduardo R. Favaretto & Alberto Luiz Albertin & Fernando de Souza Meirelles, 2018. "The Influences of Strategic Information Systems on the Relationship between Innovation and Organizational Performance," Brazilian Business Review, Fucape Business School, vol. 15(5), pages 444-459, September.
    7. Cao, Zhangfan & Chen, Steven Xianglong & Lee, Edward, 2022. "Does business strategy influence interfirm financing? Evidence from trade credit," Journal of Business Research, Elsevier, vol. 141(C), pages 495-511.

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