Model Analysis of the Relationship Between Strategic Organization Knowledge and the Use of Information Systems in Firm Performance in Brazil

Abstract

Information Technology (IT) consolidates as an essential element to support the business strategies to survive and rapidly adapts to changes in the competitive environment. This paper examines the impact of the use of information systems (IS) and strategic organization knowledge (SOK) on firm performance in 150 Brazilian companies. The study uses partial least squares structural equation modeling (PLS-SEM) and establishes models to express the relationship among the constructs examined. The study identifies that the direct influence of IS use on performance is moderately significant. However, when mediated by orientation strategy, the total effect of IS use on firm performance is demonstrated to be highly significant. The model explains 54% of the variability of firm performance and confirms IS use as a fundamental resource to support strategic business processes.