The Effect of IS-Innovation Strategy Alignment on Corporate Performance: Investigating the Role of Environmental Uncertainty by Heterogeneity

Abstract

The study investigates how the alignment at the processing levels between information systems (IS) strategy, through strategy-as-practice approach, and innovation influences corporate performance (CP) under environmental uncertainty from 856 Brazilian firms by PLS-SEM. The results indicated that all approaches of alignment between IS strategy and innovation have strong influences on CP. The alignment with ambidextrous innovation had a 62% higher contribution on CP than alignment between exploitative innovations. Additionally, exploitative innovations had positive effects on CP under high hostility environments; and explorative and ambidextrous innovations had positive large and strong effects on CP under high dynamic environments.

Strategic knowledge, IT capabilities and innovation ambidexterity: role of business process performance

“…Business processes are considered core competencies (Kaplan and Norton, 2008;Porter, 1990;Teece, 2018) to firm build agility, flexibility and speed when coping with environmental changes to gain innovation ambidexterity (IAM) (Alamayreh et al, 2019;Goel et al, 2012). According to Queiroz Queiroz et al (2018) and Yoshikuni and Lucas (2022), IT capabilities depend on SK by aligning business strategy to build organizational agility through the business processes to create ambidexterity.…”

“…Several studies have examined the effects of environmental factors on the empirical model relationship through linear regression and reported both significant and non-significant effects of moderation environmental factors (Lee et al, 2015;Wamba et al, 2020;Wilden et al, 2013;Yoshikuni and Lucas, 2022). According to Woodside et al (Pappas and Woodside, 2021;Woodside, 2014), many empirical studies have not considered analyzing the contrarian cases.…”

“…Hence, exploration requires more resource investment with uncertain payoffs and firms have to focus to seize, i.e. firms' ability to sense opportunities to create exploratory innovations (Bodwell and Chermack, 2010;Xie and Gao, 2018;Yoshikuni and Lucas, 2022).…”

“…Therefore, in this study, IAM combines both exploitation and exploration activities (Bodwell and Chermack, 2010;Ceptureanu and Ceptureanu, 2019;Raisch et al, 2009), when organizations are skilled in concurrently exploiting present capabilities and discovering new chances and opportunities to create innovation (Alamayreh et al, 2019;Ardito et al, 2018;Chandrasekaran et al, 2012;Jansen et al, 2006;Yoshikuni and Lucas, 2022;Zang and Li, 2017). IMDS 124,2 2.3 Effects of resource orchestration on innovation ambidexterity through business process performance According to Porter (1990) and Kaplan and Norton (2008) firm value chain is decomposed by business processes that work activities across time and space, with clearly identified inputs, transformation and outputs, i.e.…”

“…Therefore, in this study based on the SK-IT business value model (Melville et al, 2004;Soto-Acosta et al, 2018), a blend of ITC and knowledge strategies represent firms' cognizant and intuitive, directional and object-oriented endeavors to make, acquire, share and practice strategic information and knowledge (Chan et al, 2016;Whittington, 2014;. Consequently, this effort provides firms with an understanding of applying current and creating new, ITC in alignment with SK capabilities to enhance performance outcomes Yoshikuni and Lucas, 2022). Based on this reason, it suspects that the more successful SK, the higher will be the ITC that a firm is expected to attain.…”