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Information technology (IT) has the potential to substantially enhance firm performance. However, not all firms possess the complementary factors that unlock the full value of IT. Ferdinand Mahr develops an integrative theoretical model of IT complements such as organizational structure, human resource management, and corporate strategy. Further, he analyzes two unique datasets gathered through 1,500 telephone interviews with managers. He examines how the organization and management required to enable IT’s positive performance effects differ with respect to a firm’s strategic orientation toward efficiency or innovation. He also shows that the use of a specific mix of IT can outweigh the usually detrimental performance effects of hybrid strategies that mix efficiency- and innovation-orientation. This book shows that IT does indeed matter if adequately aligned with organization and strategy.
