An Integrative Approach To Analyzing The Relationship Of Business Information Systems Technology, Investment Strategy, And Operation Process

Abstract

This study examines whether or not a congruence exists between a firm’s operational process category(job shop, batch flow, repetitive and continuous) and the level of information system technology sophistication within varying business investment strategies for a cross-section of 130 firms representing 36 two digit Standard Industrial Classification (SIC) codes and 66 four digit SIC codes.  Analysis of the data revealed that firms who reported implementing risk-oriented strategies of share increasing and growth employ intermittent operation processes within moderate levels of information system technology sophistication.  In contrast, firms reporting the implementation of a risk-averse strategy (eg., profit) employ continuous flow operation processes with high levels of information system technology sophistication.