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Strategic use of information system technology by savings institutions: An empirical investigation
Abstract
In a study involving 52 large organizations in the savings institutions industry, the relationship between information systems technology (IST) structure and competitive strategy was investigated based on structural contingency theory. Structural contingency theory argues that organizational performance is contingent on the congruence between structure and contingent factors. Competitive strategy is considered to be the most important contingent factor among organizational context variables. Two dimensions of IST structure and three types of competitive strategy were employed to test a contingency model. It was found that enhanced congruence between IST structure and competitive strategy was associated with higher competitive advantage. The structural dimension significantly associated with the "defender" strategic stance was more centralized and more integrated application of IST, while the structural dimension significantly associated with "prospector" positioning was more decentralized and less integrated application of IST. However, each type of competitive strategy was found to be equally effective for the savings institutions examined in this study. Also, it was found that integration and centralization of IST are not significantly related to competitive advantage, which is contrary to previous studies.
Subject Area
Information Systems|Management
Recommended Citation
Chung, Lakchae, "Strategic use of information system technology by savings institutions: An empirical investigation" (1991). ETD collection for University of Nebraska-Lincoln. AAI9208103.
https://digitalcommons.unl.edu/dissertations/AAI9208103