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

  • Authors:
  • Jong-min Choe

  • Affiliations:
  • School of Business, La Trobe University, Bundoora 3086, Vic., Australia

  • Venue:
  • Information and Management
  • Year:
  • 2003

Quantified Score

Hi-index 0.05

Visualization

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.