Information systems, strategic flexibility and firm performance: An empirical investigation

This study investigated the bottom-line impacts of IS support for strategic flexibility. The performance effects of IS support for two key components of strategic flexibility (product flexibility and cross-functional coordination) and the moderating effects of unique, complementary knowledge and information were examined and tested with both survey and archival data. The results showed that IS support for product flexibility was positively related to sales growth and returns on sales. The study also found a stronger association between IS support for product flexibility and ROS, and a positive relationship between IS support for cross-functional coordination and sales growth, when IS were complemented by unique knowledge and information. (c) 2005 Elsevier B.V. All rights reserved.