Information processing design choices, strategy, and risk management performance

James F. Fairbank, Giuseppe Labianca, H. Kevin Steensma, Richard Metters

Research output: Contribution to journalArticle

44 Scopus citations

Abstract

We examined the relationship between information technology (IT) and organizational performance in the U.S. life/health insurance industry by applying and testing Galbraith's information processing theory and strategic contingency theory. Rather than focusing on resource allocations in IT, we instead examined the manner in which IT is deployed in organizations through information processing design choices. Our results suggest that while some information processing design choices are generally related to organizational performance, others should be matched to a specific strategic posture. For example, we found that all organizations benefit from using IT to increase cost-effectiveness. However, other uses of IT should be more closely aligned with an organization's strategy. In particular, domain offensive organizations should align their IT systems to focus on the front end of their operations and understanding customer needs, which will spur further innovation.

Original languageEnglish (US)
Pages (from-to)293-319
Number of pages27
JournalJournal of Management Information Systems
Volume23
Issue number1
DOIs
StatePublished - Dec 29 2006

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Computer Science Applications
  • Management Science and Operations Research
  • Information Systems and Management

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