The Contribution of IT to the Bottom Line: A Contingency Perspective of Strategic Dimensions

The relationship between infoonation technology and business performance has been a focus of IS research in rccent years. However. few soUd results have been found as of yet which empirieally link them together. Sorne problems rcmain with the definition and measurement of rr. organizational perfonnance and "fit" between technology and ocganizational strategy. Thus stronger empirical evidence is required be(ore concluding with ccrtainty thal IT can lead to grea1er business perfonnance. ln view ofthis, an empirical study was conducted among 126 business fums to validate a research modellinking strategic orientation and strategie rr managementto performance. Using both a perceptual (growth and profitability) and an objecti ve masure of performance (RDA), this study provides new and interesting empirical evidence (or the strategie conditions under whieh information technology contributes to the bouom line. The main thrUst of the findings is that peak perfonnance is achieved by figns that combine a strong strategie orientationwith a strategically oriented rr management.

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