Information Systems’ Contribution to Firm Performance: Impacts of Information Systems Strategy and IS Maturity

Abstract

The evolution of information systems (IS) into a more strategic tool in organizations from its traditional role of a business support has taken root in the last decade. For many, the level of sophistication/maturity of the enterprise-IS is key to delivering competitive advantage or efficiency gains towards firm performance. As such, the adoption and implementation of appropriate IS Strategy is imperative to setting the path for the effective utilization and management of the enterprises-IS to deliver the desired outcome. But what strategies underpin the implementation of the enterprises-IS agenda and how do these influence the level of the enterprise-IS Maturity and its contribution to overall firm performance? The study adopts a quantitative design and cross-sectional approach with survey responses from IT executives of Ghana Club 100 organizations in Accra to examine this phenomenon. Results suggest that although defined IS Strategy positively impacts enterprise-IS Maturity and leads to greater contribution of IS to firm performance, IS Innovator strategy yields greater impact than IS Conservative strategy Whereas IS Undefined strategy is detrimental to enterprises-IS Maturity. Further, the surveyed organizations exhibit “stage disparity” recording different stage scores for the enterprise-IS growth processes. It is imperative, therefore, that organizations not only develop definitive IS Strategy to guide the enterprise-IS agenda, but be consistent in their implementation towards improved firm performance and sustainability.

Keywords: IS Strategy, IT Maturity, Performance, Enterprise-IS, Stage Disparity