Abstract

A new stream of research in information technology (IT) has recently developed. One that focuses on IT and its relationship to strategy and performance. This paper presents the results of a survey of senior business executives. The study examines the perceptions of these executives of the business strategy pursued by their organisations, the way IT is used to deliver those strategy, and their impact on company performance. The results suggest that prospector-type organisations are more likely to use IT to expand product innovations and market opportunities, whereas defender-type organisations are more likely to use IT to improve operational efficiency. While variations in the use of IT can be explained by the organisation'sstrategy, the results seem to suggest that there is little perceived difference in performance. Both prospector and defender type organisations reported generally favourable performance within their industry. The findings of this study is consistent with the notion of "organisational fit" and concludes that fit between the firm's strategy and the use of IT is linked to a higher level of firm performance

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