This study examines the scarcely studied influence of organizational culture and IT capability on organizational performance. We surveyed 143 managers within the for-profit sector and 151 managers within the not-for-profit sector and our study demonstrate that interactions with organizational culture matter for organizational performance. For instance, interactions between organizational culture and IT capability may dampen an otherwise positive effect of IT capability on performance. We provide preliminary empirical evidence on the importance of organizational culture and demonstrate that without this contextual information, findings about business value of IT may be incomplete.