The influence of environmental uncertainty on the strategic use of information systems

Abstract

How market hostility affects managerial competencies is an important human resources issue. The role of the CEO in strategic information systems planning and the CIO business planning may become more important under environmental uncertainty, especially for firms highly dependent upon information technology. In this study, CIOs were surveyed determine how environmental uncertainty information intensity impacted the role strategic IS planning practices. Both environmental uncertainty and information intensity were more strongly related to SISP practices in the electric utility industry when compared to other industries surveyed. Undergoing deregulation, electric utility companies are now being exposed to a level of environmental hostility not experienced in the past. Results indicate that a sudden change in environmental uncertainty may be a more important motivation to the use of SISP practices than the level of uncertainty itself. Data also suggest that information intensity may moderate the relationship between environmental uncertainty and SISP practices.