Business and information technology strategies and their impact on organizational performance

Abstract

Measuring the impact of information technology (IT) on organizational performance is a complicated task. Since organizational performance cannot be shaped only by IT applications, other factors such as business strategies and organizational culture should also be taken into consideration while measuring the impact of IT on overall performance. For measuring organizational performance, a long list of tangible and intangible factors can be found in the literature. Following a survey of the literature study, a conceptual model and a measurement instrument were developed. The questionnaire was distributed to top 500 companies in Turkey and some public organizations. The results of 105 questionnaires were included in the analyses. The relationship between independent variables and organizational performance was analyzed. One of the major findings is that in organizations adopting an innovative and supportive culture, the impact of IT on overall performance is stronger. IS departments scanning IT continuously in various ways make better use of technology and implement applications that reduce operational costs. Most respondents admit that IT enables them to show better individual performance.