The relationship between information technology and business performance has been a focus of IS research in recent years. However, few solid results have been found as of yet which empirically link them together. Some problems remain with the definition and measurement of IT, organizational performance and "fit" between technology and organizational strategy. Thus stronger empirical evidence is required before concluding with certainty that IT can lead to greater business performance. In view of this, an empirical study was conducted among 126 business finns to validate a research model linking strategic orientation and strategic IT management to performance. Using both a perceptual (growth and profitability) and an objective measure of performance (ROA), this study provides new and interesting empirical evidence for the strategic conditions under which information technology contributes to the bottom line, The main thrust of the findings is that peak performance is achieved by firms that combine a strong strategic orientation with a strategically oriented 1T management.