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The impact of environmental turbulence on the design of effective strategic information systems
Abstract
This study explored the relationship between the design of strategic information systems (SIS), the level of environmental turbulence, and the quality of the resultant strategic decisions. SIS designed to match the organization's environmental context were expected to result in higher quality strategic decisions than non-matching SIS. In this laboratory study, 145 undergraduate students enrolled in business policy were randomly assigned to either use one of two SIS developed by the researcher or to use no computer system in preparing written decision reports for one of two standard business cases. The cases were selected by five independent raters to represent conditions of high and low turbulence. The synoptic approach to strategic management provided the decision support component of one SIS, while the incremental approach provided the other. The quality of the students' decision reports was assessed by three independent raters (using criteria specified by the researcher) who were unaware of the method used in their preparation. The raters' perceptions of decision performance were contrasted. The hypothesis that effective SIS design is contingent upon the level of environmental turbulence was supported, but the pattern of results was contrary to that predicted by the literature. When turbulence is high, the incremental approach was expected to result in higher quality decisions. But, in this study, use of the synoptic approach resulted in higher quality decisions in the turbulent environment. The reverse was true when turbulence was low. Methodological or SIS design problems were ruled out as explanations for the contradiction. Replication of the study using different business cases was recommended to determine if the findings were due to case effects. Contingency relationships, such as the one examined here, may explain why other studies have not found a positive affect of computerized decision aids on decision making performance. Future research concerning contingency relationships and SIS design was recommended to permit effective utilization of computer technology or successful strategic management of organizations.
Subject Area
Management
Recommended Citation
Morris, Rebecca J, "The impact of environmental turbulence on the design of effective strategic information systems" (1988). ETD collection for University of Nebraska-Lincoln. AAI8914085.
https://digitalcommons.unl.edu/dissertations/AAI8914085