Paper Status Tracking
Contact us
[email protected]
Click here to send a message to me 3275638434
Paper Publishing WeChat

Article
Affiliation(s)

Adilson Carlos Yoshikuni, Doctoral student in Business Administration and Master of Science in Accounting, Department of Information Technology and Quantitative Methods Applied to Administration, School of Business Administration of São Paulo, Fundação Getulio Vargas, Brazil.
Alberto Luiz Albertin, Ph.D. in Business Adminstration, Department of Information Technology and Quantitative Methods Applied to Administration, School of Business Administration of São Paulo, Fundação Getulio Vargas, Brazil.

ABSTRACT

Information Technology (IT) consolidates as an essential element to support the business strategies to survive and rapidly adapts to changes in the competitive environment. This paper examines the impact of the use of information systems (IS) and strategic organization knowledge (SOK) on firm performance in 150 Brazilian companies. The study uses partial least squares structural equation modeling (PLS-SEM) and establishes models to express the relationship among the constructs examined. The study identifies that the direct influence of IS use on performance is moderately significant. However, when mediated by orientation strategy, the total effect of IS use on firm performance is demonstrated to be highly significant. The model explains 54% of the variability of firm performance and confirms IS use as a fundamental resource to support strategic business processes.

KEYWORDS

firm performance, strategic organization knowledge (SOK), information systems (IS) use, information technology (IT)

Cite this paper

References
Atkinson, A. A., Kaplan, R. S., Matsumura, E. M., & Young, S. M. (2011). Management accounting: Information for decision-making and strategy execution (6th ed.). Upper Saddle River, New Jersey: Prentice Hall. 
Albertin, A. L., & Albertin, R. M. (2012). Dimensions of the use of information technology: A diagnostics and analysis instrument. Rev. Adm. Púb. 46(1), 125-151.
Andersen, T. J. (2004). Integrating decentralized strategy making and strategic planning processes in dynamic environments. Journal of Management Studies, 41(8), 1271-1299.
Anderson, M. C, Banker, R. D., & Ravindran, S. (2006). Value implications of investments in information technology. Management Sci, 52(9), 1359-1376.
Andriessen, D. G. (2004). Making sense of intellectual capital—Designing a method for the valuation of intangibles. Miami: Elsevier Butterworth-Heinemann.
Ansoff, H. I. (1991). Critique of Henry Mintzberg’s “The design school”. Strategic Management Journal, 12(6), 449-461.
Ansoff, H. I., & Nakamura, G. I. (2007). Strategic Management (1st ed.). Basingstoke: Palgrave Macmillan.
Argyris, C., & Schön, D. (1978). Organizational learning: A theory of action perspective. Mass: Addison Wesley.
Barney, J. B. (2002). Gaining and sustaining competitive advantage. Upper Saddle River, New Jersey: Prentice Hall.
Baum, J. R., & Wally, S. (2003). Strategic decision speed and firm performance. Strategic Management Journal, 24(11), 1107-1129.
Beer, M., Voelpel, S. C., Leibold, M., & Tekie, E. B. (2005). Strategic management as organizational learning: Developing fit and alignment through a disciplined process. Long Range Planning, 38(5), 445-465.
Beehr, T. A., Glazer, S., Fischer, R., Linton, L. L., & Hansen, C. P. (2009). Antecedents for achievement of alignment in Organizations. Journal of Occupational and Organizational Psychology, 82(1), 1-20. 
Bettis-Outland, H. (2012). Decision-making’s impact on organizational learning and information overload. Journal of Business Research, 65, 814-820
Boswell, W. R., & Boudreau, J. W. (2001). How leading companies create, measure and achieve strategic results through “line of sight”. Management Decision, 39(10), 851-859. 
Boswell, W. R., John, B. B., & Alexander, J. S. C. (2006). Aligning employees through “line of sight”. Business Horizons, 49(6), 499-509.
Brandão, H. P., Borges-Andrade, J. E., & Guimarães, T. A. (2012). Organizational performance and its relation with management competencies, perceived organizational support and training. Rev. Adm., 7(4), 523-539.
Carr, C. L. (2002). A psychometric evaluation of the expectations, perceptions, and difference–Scores generated by the IS-Adapted SERVQUAL Instrument. Decision Sciences, 33(2), 281-296.
Cameron, K. (1986). A study of organizational effectiveness and its predictors. Management Science, 32(1), 87-112.
Chan, Y., & Huff, S. (1993). Strategic information systems alignment. Business Quarterly, 58(1), 51-56. 
Chan, Y., Huff, S., Barclay, D., & Copeland, D. (1997). Business strategic orientation, information system strategic orientation, and strategic alignment. Information Systems Research, 8(2), 125-150.
Chakravarthy, B. (1986). Measuring strategic performance. Strategic Management Journal, 7(5), 437-458.
Chari, M. D. R., Devaraj, S., & David, P. (2008). IT and firm performance: Moderating effects of product diversification. Management Science, 54, 224-234.
Chin, W. W. (2010). How to write up and report PLS analyses. In V. Esposito et al. (Eds.), Handbook of Partial Least Squares (pp. 655-688). New York: Springer-Verlag.
Chin, W. W., & Newsted, P. R. (1999). Structural equation modeling analysis with small sample using partial least squares. In R.H. Hoyle (Ed.), Statistical strategies for small sample research (pp. 307-341). Thousand Oaks: Sage Publications.
Combs, J. G., Crook, T. R., & Shook, C. L. (2005). The dimension of organizational performance and its implications for strategic management research. In D.J. Ketchen, K. Cool, & D. Schendel (Eds.), Performance differences among strategic group members. Strategic Management Journal, 9(3), 207-233.
Copeland, T., Koller, T., Murrin, J. (2000). Valuation: Measuring and managing the value of companies (3rd ed.). Hoboken: John Wiley & Sons, Inc..
Davenport, T. H., & Prusak, L. (1998). Working knowledge: How organizations manage what they know. Cambridge, MA: Harvard Business School Press.
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319-339.
Delone, W. H., & Mclean, E. R. (1992). Information systems success: The quest for the dependent variable. Information Systems Research, 3(1), 60-86.
Delone, W. H., & Mclean, E. R. (2003). The DeLone and McLean model of information systems success: A ten year update. Journal of Management Information Systems, 19(4), 9-30.
Devaraj, S., & Kohli, R. (2003). Performance impacts of information technology: Is actual usage the missing link? Management Science, 49(3), 273-273.
Drucker, P. (1993). Management: Tasks, responsibilities, practices. New York: Harper Business.
Drucker, P. (2006). The practice of management. New York: Harper Business.
Earl, M. (2001). Knowledge management strategies: Toward a taxonomy. Journal of Management Information Systems, 18(1), 215-233.
Elbanna, S. (2012). Slack, planning and organizational performance: Evidence from the Arab Middle East. European Management Review, 9(2), 99-115.
Elele, J., & Fields, D. (2010). Participative decision making and organizational commitment comparing Nigerian and American employees. Cross Cultural Management: An International Journal, 17(4), 368-392.
Falshaw, J. R., Glaister, K. W., & Tatoglu, E. (2006). Evidence on formal strategic planning and company performance. Management Decision, 44(1), 9-30.
Fornell, C., & Larcker, D. F. (1981) Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18, 39-50.
Friedman, A. L., & Miles, S. (2002). Developing stakeholder theory. Journal of Management Studies, 39(1), 1-21.
Ghemawat, P. (2002). Competition and business strategy in historical perspective. Business History Review, 76(1), 37-74.
Garnett, J. L., Marlowe, J., & Pandey, S. K. (2008), Penetrating the performance predicament: Communication as a mediator or moderator of organizational culture’s impact on public organizational performance. Public Administration Review, 68(2), 266-281.
Glick, W. H., Washurn, N. T., & Miller, C. (2005). The myth of firm performance. Proceedongs from Annual Meeting of American Academy of Management, Honolulu.
Gönczi, A. (1999). Competency-based learning: A dubious past–An assured future? In D. Boud, & J. Garrick (Eds.), Understanding learning at work (pp. 180-194). London: Routledge.
Hall, G. R. J., & Wade, D.(1993). How to make reengineering work. Harvard Business Review, 71(6), 199-131.
Hamel, G., & Prahalad, C. K. (1996). Competing for the future (1st ed.). Boston: Harvard Business Review Press. 
Hair, J., Black, W., Babin, B., Anderson, R., & Tatham, R. (2009). Multivariate data analysis (6th ed.). New Jersey, Upper Saddle River: Prentice Hall.
Hair, F., Hult, G., Ringle, C., & Sarstedt, M. (2013). A primer on partial least squares structural equation modeling (PLS-SEM). New York: Sage Publication. 
Illeris, K. (2004). Adult education and adult learning. Copenhagen: Roskilde University Press.
Ju, M., Zhou, K. Z., Gaoo, G. Y., & Lu, J. (2013). Technological capability growth and performance outcome: Foreign versus local firms in China. Journal of International Marketing, 21(2), 1-16.
Kalika, M., Kefi, H., & Schwarz, A. (2010). Dynamic capabilities approach to understanding the impact of IT-enabled businesses processes and IT-business alignment on the strategic and operational performance of the firm. Communications of Association for Information System, 26, 57-84.
Kaplan, R., & Norton, D. (1996). The balanced scorecard: Translating strategy into action. Boston: Harvard Business School Press.
Kaplan, R., & Norton, D. (2004). Strategy Maps (1st ed.). Boston: Harvard Business School Press. 
Kaplan, R., & Norton, D. (2008). The execution premium: Linking strategy to operations for competitive advantage (1st ed.). Boston: Harvard Business School Press.
Kanter, R. M., & Brinkerhoff, D. (1981). Organizational performance: Recent development in measurement. Annual Review of Sociology, 7, 321-349.
Ketokivi, M., & Castañer, X. (2004). Strategic planning as an integrative device. Administrative Science Quarterly, 49(3), 337-365.
Khadem, R. (2008). Alignment and follow-up: Steps to strategy execution. Journal of Business Strategy, 29(6), 29-35.
Lohmöller, J. (1989). Latent variable path modeling with partial least squares. Heidelberger: Physica-Verlag.
Lozano, L. M., García-Cueto, E., & Muñiz, J. (2008). Methodology: Effect of the number of response categories on the reliability and validity of rating scales. European Journal of Research Methods for the Behavioral and Social Sciences, 4(2), 73-79.
Mahmood, M. A. (1993). Associating organizational strategic performance with information technology investment: An exploratory research. European Journal of Information Systems, 2(3), 185-200.
Maritz, R., Pretorius, M., & Plant, K. (2011). Exploring the interface between strategy-making and responsible leadership. Journal of Business Ethics, 98,101-113. 
Marôco, J. (2010). Análise de Equações Estruturais: Fundamentos teóricos, software e aplicações. Report Number: Pêro Pinheiro.
Mathew, M., Kumar, D., & Perumal, S. (2011). Vikalpa: Role of knowledge management initiatives in organizational innovativeness: Empirical findings from the IT industry. The Journal for Decision Makers, 36(2), 31-43.
Meirelles, F. (2013). Research: IT asset management-information technology. São Paulo: Center for Applied Information Technology EAESP-GVCial.
Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Review: Information technology and organizational performance: An integrative model of IT business value. MIS Quarterly, 28(2), 283-322.
Mintzberg, H. (1998). Five Ps for the strategy process concepts,contexts and cases. Upper Saddle River, New Jersey: Prentice Hall.
Mintzberg, H., Ahistrad, B., & Lampel, J. (2009). Strategy safari: The complete guide throughtThe wide of strategic managemen (2nd ed.). London: Pearson Education Limited.
Mitchell, R., Agle, B., & Wood, D. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what really counts. Academy of Management Review, 22(4), 853-886.
Murphy, T. (2002). Achieving business value from technology: A practical guide for today’s executive. Hoboken: John Wiley & Sons.
Murphy, G. B., Trailer, J., & Hill, R. (1996). Measuring performance in entrepreneurship research: An empirical review of the literature. Journal of Business Research, 36, 15-23.
Narasimhan, R., & Kim, S. (2002). Effect of suplly chain integration on the relationship between diversification and performance: Evidence from Japanese and Korean firms. Journal of Operations Management, 20, 303-323.
Nonaka, I. (1994). A dynamic theory of organizational knowledge creation. Organization Science, 5(1), 14-37.
Nonaka, I., & Konno, N. (1998). The concept of “Ba”: Building a foundation for knowledge creation. California Management Review, 40(3), 40-54.
Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamic of innovation. New York: Oxford University Press.
Nonaka, I., & Toyama, R. (2005). The theory of the knowledge creation firm: Subjectivity, objectivity, and synthesis. Industrial and Corporate Change, 14(3), 419-436.
Nonaka, I., Takeuchi, H., & Umemoto, K. (1996). A theory of organizational knowledge creation. International Journal of Technology Management, 11(7), 833-845.
Nonaka, I., Toyama, R., & Konno, N. (2000). SECI, Ba and leadership: A unified model of dynamic knowledge creation. Long Range Planning, 33(1), 5-34.
Ong, T. S., & Teh, B. H. (2009). The use of financial and non-financial performance measures in the Malaysian manufacturing companies. Journal of Accounting Research, 8(1), 23-33.
Ouakouak, M. L., & Ouedraogo, N. (2013). The mediating role of employee strategic alignment in the relationship between rational strategic planning and firm performance: A European study. Canadian Journal of Administrative Sciences, 30, 143-158.
O’Reilly, C. A., Caldwell, D. F., Chatman, J. A., Lapiz, M., & Self, W. (2010). How leadership matters: The effects of leaders’ alignment on strategy implementation. The Leadership Quarterly, 21(1), 104-113.
Pace, S., Basso, L., & Silva, M. (2003). Performance indicatorssuch asvalue drivers. Journalof ContemporaryManagement, 7(1), 37-65.
Parasuraman, A., Berry, L., & Zeithaml, V. (1988). SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-37.
Petter, S., & Mclean, E. (2009). A meta-analytic assessment of the DeLone and McLean IS success model: An examination of IS success at the individual level. Information & Management, 46, 159-166.
Porter, M., & Millar, V. (1985). How information gives you competitive advantage. Harvard Business Review, 63(4), 149-160.
Porter, M. (1996). What is strategy? Harvard Business Review ,6, 61-78. 
Porter, M. (2010). A competitividade também é social. HSM Management, 78, 19-26.
Porter, M. (1987). From competitive advantage to corporate strategy. Harvard Business. Review, 65(3), 43-59.
Rai, A., Lang, S., & Welker, R. (2002). Assessing the validity of IS success models: An empirical test and theoretical analysis. Information Systems Research, 13(1), 50-69
Rapert, M., Velliquette, A., & Garretson, J. (2000). The strategic implementation process; evoking strategic consensus through communication. Journal of Business Research, 55(4), 301-310
Ringle, C., Wende, S., & Will, A. (2005). SmartPLS 2.0 M3. Germany: University of Hamburg. Retrieved from http://www.smartpls.de
Ringle, C., Sarstedt, M., & Straub, D. (2012). A critical look at the use of PLS-SEM in MIS Quarterly. MIS Quarterly (MISQ), 36(1), 8-18.
Reid, M. (2013). New dirvers of economic growth (Brazil Summit 2013). Retrieved from http://www.economist.com
Segal-Horn, S. (2004). The modern roots of strategic management. European Business Journal, 16(4), 133-144.
Shannon, C. E., & Weaver, W. (1949). The mathematical theory of communication. Urbana: University of Illinois Press.
Sharma, M. K., & Kaur, G. (2009). Employee empowerment: A conceptual analysis. Journal of Global Business Issues, 2(2), 7-12.
Senge, P. M. (1990). The fifth discipline. New York: Double Day.
Sila, I. (2007). Examining the effects of contextual factor on TQM and performance through the lens of organizational theories: An empirical study. Journal of Operations Management, 25, 83-109.
Sila, I., & Ebrahimpour, M. (2005). Critical linkages among TQM factors and business results. International Journal of Operations and Production Management, 25(11), 1123-1155.
Sminia, H., & Rond M. (2013). Context and action in the transformation of strategy scholarship. Journal of Management Studies, 49(7), 1329-1349.
Sonnentag, S., Niessen, C., & Ohly, S. (2004). Learning at work: Training and development. In C.L. Copper, & I.T. Robertson (Eds.), International review of industrial and organizational psychology (pp.249-289). London: John Wiley & Sons.
Teece, D. J. (1982). Towards an economic theory of the multiproduct firm. Economic Behavior and Organization, 3(1), 39-63.
Song, M., Im, S., Bij, H., & Song, L. (2011). Does strategic planning enhance or impede innovation and firm performance? Journal of Product Innovation Management, 28, 503-520.
Tracey, M., Vonderembse, M., & Lim, J. (1999). Manufacturing technology and strategy formulation: Keys to enhancing copetitiveness and improving performance. Journal of Operations Management, 17, 411-428.
Ugboro, I. O., Obeng, K., & Spann, O. (2011). Strategic planning as an effective tool of strategic management in public sector organizations: Evidence from public transit organizations. Administration & Society, 43(1), 87-123.
Venkatesh, V., Morris, M., Davis, G., & Davis, F. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425-478.
Venkatraman, N., & Ramanujam, V. (1996). Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review, 11(4), 801-814.
Vila, J., & Canales, J. I. (2008). Can strategic planning make strategy more relevant and build commitment over time? The case of RACC. Long Range Planning, 41, 273-290.
Wetzels, M., Odekerken-Schroder, G., & Oppen, C. (2009). Using PLS path modeling for assessing hierarchical construct models: Guidelines and empirical illustration. MIS Quarterly, 33(1), 177-195.
Wold, H. (1982). Soft modeling: The basic design and some extensions. In K.G. Jöreskog, & H. Wold (Eds.), Systems under indirect observation: Causality, structure, and prediction (pp. 1-54). Netherlands: North-Holland Publishing company.
Wu, J., & Wang, Y. (2006). Measuring KMS success: A respecification of the DeLone and McLean’s model. Information & Management, 43(6), 728-739.
Yoshikuni, A, C., & Albertin, L. A. (2013). The impact of use of Informationa systems and competitive strategy on Brazilian companies performance. Proceedings from 44th Decision Science Institute Annual Meeting, Baltimore.
Yoshikuni, A., & Galegale, N. (2011). Study on the contribution of digital technology in business strategy communication. Proceedings from 8th International Conference on Information Systems and Technology Management, São Paulo, Brazil.

About | Terms & Conditions | Issue | Privacy | Contact us
Copyright © 2001 - David Publishing Company All rights reserved, www.davidpublisher.com
3 Germay Dr., Unit 4 #4651, Wilmington DE 19804; Tel: 1-323-984-7526; Email: [email protected]