The IS-business relationship and its implications for performance: An empirical study of South African and Australian organisations

Authors:
Jason F. Cohen;Mark Toleman
Affiliations:
School of Economic and Business Sciences, University of the Witwatersrand, Johannesburg, Private Bag X3, WITS, 2050, South Africa;Department of Information Systems, University of Southern Queensland, Toowoomba 4350, Australia
Venue:
International Journal of Information Management: The Journal for Information Professionals
Year:
2006

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Abstract

Lack of a close 'Information systems (IS)-business relationship' has been described as a potential inhibitor to improving the contribution that information systems (IS) make to business performance. Yet the value of specific attributes of an enduring relationship between IS and business remains to be demonstrated by empirically confirming their link to IS performance. Using data collected from 167 South African and Australian companies, this study examined the effect of three relational attributes, namely commitment, mutual understanding and shared vision, on the contribution of IS to business performance. The study also examines the interrelationship amongst the relational attributes. Results revealed that a strong IS-business relationship is a significant determinant of IS performance. Organisations more successful in their use of IS are characterised by strong commitment on the part of the business to IS efforts, higher levels of IS understanding of the business, and a long-term agreement, between business and IS executives, on IS priorities. Results have important implications for organisations looking to improve the contribution of IS to organisational performance.