Linking the Information Technology Structure with Organizational Competitive Strategy: A Survey

In a study involving 52 large organizations in the computer components industry, the relationship between information technology structure and organizational competitive strategy was examined. The results indicate that the information technology structure, as measured by the locus of responsibilities for information systems, is strongly related to competitive strategy. For example, an organization with a conservative competitive strategy possesses a more centralized information systems function than an organization with an aggressive competitive strategy. This means that user departments in a conservative organization have less control over their information technology function than user departments in a aggressive organization. These findings provide additional support for the organizational fit concept – that the conformity between information technology structure and overall organizational context variables, including competitive strategy, is instrumental to the successful implementation of information technology systems.