The Effects of Strategic Is on Firm Performance: An Empirical Study of the Three-Way Interaction Investigation of Turbulent Scenario

Adilson Carlos Yoshikuni, Alberto Luis Albertin


The purpose of this article is to explore how the domains of turbulence scenario moderate the relationship between strategic information systems (IS) and firm performance (FP). This research conducts a quantitative survey-based study with partial least squares (PLS) technique employing a sample of 196 firms from different industries located in Brazil that operate under an uncertain environment during an economic crisis. The findings confirm the existence of strong effects in the relationship between strategic IS and firm performance. Essentially, this research further finds that this relationship (strategic IS -> FP) is particularly pronounced in uncertain hostile environments and in cases where GDP is strongly negative by three-way interaction. Thus, the research results helped organizations and managers understand SIS value in the strategy-as-practice approach to Brazilian environmental uncertainty.

Full Text:



Arvidsson, V., Holmström, J., & Lyytinen, K. (2014). Information systems use as strategy practice : A multi-dimensional view of strategic information system implementation and use. Journal of Strategic Information Systems, 23(1), 45–61.

Atkinson, A. A., Kaplan, R. S., Matsumura, E. M., & Young, S. M. (2011). Management Accounting: Information for Decision-making and Strategy Execution (6th ed.). Upper Saddle River: Prentice Hall.

Carlson, K. D., & Wu, J. (2012). The illusion of statistical control: control variable practice in management research. Organizational Research Methods, 15(3), 413–435.

Chan, Y. E., & Huff, S. L. (1992). Strategy: an information systems research perspective. The Journal of Strategic Information Systems, 1(4), 191–204.

Chan, Y. E., Sabherwal, R., & Thatcher, J. B. (2006). Antecedents and outcomes of strategic IS alignment: an empirical investigation. IEEE Transactions on Engineering Management, 53(1), 27–47.

Chanchun, Y. E., Sabherwal, R., & Thatcher, J. B. (2006). Antecedents and outcomes of strategic IS alignment: An empirical investigation. IEEE Transactions on Engineering Management.

Chen, D. Q., Mocker, M., Preston, D. S., & Teubner, A. (2010). Information Systems Strategy: Reconceptualization, Measurement, and Implications. MIS Quarterly, 34(2), 233–259.

Dameron, S., Lê, J. K., & Lebaron, C. (2015). Materializing Strategy and Strategizing Materials: Why Matter Matters. British Journal of Management, 26(S1), S1–S12.

Davenport, T. H., Harris, J. G., & Morison, R. (2010). Analytics at Work: Smarter Decisions, Better Results. Harvard Business School Press Books. Retrieved from

Faul, F., Erdfelder, E., Lang, A. G., & Buchner, A. (2007). G*Power 3: A flexible statistical power analysis program for the social, behavioral, and biomedical sciences. Behavior Research Methods, 39(2), 175–191.

Grant, R. M. (2003). Strategic planning in a turbulent environment: Evidence from the oil majors. Strategic Management Journal, 24(6), 491–517.

Hair, J. F., Hult, G., Ringle, C., & Sarstedt, M. (2013). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Thousand Oaks: Sage.

Henseler, J., & Fassott, G. (2010). Testing moderating effects in PLS path models: an illustration of available procedures. In V. Esposito Vinzi, W. W. Chin, J. Henseler, & H. Wang (Eds.), Handbook of Partial Least Squares: Concepts, Methods and Applications (pp. 713–735). Berlin: Springer.

Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, 20, 277–319.

Hill, C., Jones, G., & Schilling, M. (2014). Strategic Management: Theory: An Integrated Approach. Cengage Learning.

Hitt, M. A., Keats, B. W., & DeMarie, S. M. (1998). Navigating in the new competitive landscape: Building strategic flexibility and competitive advantage in the 21st century. Academy of Management Perspectives, 12(4), 22–42.

I.M.F. (2016). International Monetary and Financial Committee, Thirty-third Meeting. Retrieved February 23, 2017, from

I.M.F. (2017). 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany; IMF Country Report No. 17/192; June 13, 2017, (17).

IBGE. (2016). Contas Nacionais Trimestrais. Retrieved February 23, 2017, from

Johnson, A. M., & Lederer, A. L. (2013). IS Strategy and IS Contribution: CEO and CIO Perspectives. Information Systems Management, 30(4), 306–318.

Kaplan, R. S., & Norton, D. P. (2008). The Execution Premium: Linking Strategy to Operations for Competitive Advantage. Boston: Harvard Business School Press.

Kearns, G. S., & Sabherwal, R. (2006). Strategic Alignment Between Business and Information Technology: A Knowledge-Based View of Behaviors, Outcome, and Consequences. Journal of Management Information Systems, 23(3), 129–162.

Kenworthy, T. P., & Verbeke, A. (2015). The future of strategic management research: Assessing the quality of theory borrowing. European Management Journal, 33(3), 179–190.

Kim, G., Shin, B., Kim, K. K., & Lee, H. G. (2011). IT Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance. Journal of Association for Information Systems, 12(7), 487–517.

Lederer, A. L., & Mendelow, A. L. (1986). Issues in information systems planning. Information & Management.

Leidner, D. E., Lo, J., & Preston, D. S. (2011). An empirical investigation of the relationship of IS strategy with firm performance. Journal of Strategic Information Systems, 20(4), 419–437.

Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429–451.

Maharaj, S., & Brown, I. (2015). The impact of shared domain knowledge on strategic information systems planning and alignment. South African Journal of Information Management, 17(1), 1–12.

Mao, H., Liu, S., & Zhang, J. (2014). How the effects of IT and knowledge capability on organizational agility are contingent on environmental uncertainty and information intensity. Information Development, 31(4), 1–25.

Marabelli, M., & Galliers, R. D. (2017). A reflection on information systems strategizing: the role of power and everyday practices. Information Systems Journal, 27(3), 347–366.

Marôco, J. (2010). Análise de Equações Estruturais: Fundamentos Teóricos, Software e Aplicações. Portugal: Pêro Pinheiro.

Meirelles, F. S. (2016). Pesquisa Anual do Uso de TI nas empresas. São Paulo: Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo, Centro de Tecnologia de Informação Aplicada. FGV-EAESP-CIA.

Melville, N., Kraemer, K., & Gurbaxani, V. (2004). Review: Information Technology and Organizational Performance: An Integrative Model of IT Business Value. MIS Quarterly, 28(2), 283–322.

Merali, Y., Papadopoulos, T., & Nadkarni, T. (2012). Systems Information systems strategy : Past, present, future ? Journal of Strategic Information Systems, 21(2), 125–153.

Mikalef, P., & Pateli, A. (2017). Information technology-enabled dynamic capabilities and their indirect effect on competitive performance: Findings from PLS-SEM and fsQCA. Journal of Business Research, 70, 1–16.

Mikalefdletear, P., & Pateli, A. (2017). Information technology-enabled dynamic capabilities and their indirect effect on competitive performance: Findings from PLS-SEM and fsQCA. Journal of Business Research, 70, 1–16.

Miller, D., & Friesen, P. H. (1983). Strategy-making and enviroment: the third link. Strategic Management Journal, 4, 221–235.

Mintzberg, H., Ahlstrand, B. W., & Lampel, J. (2009). Strategy safari: The complete guide through the wilds of strategic management (2nd ed.). Harlow:UK: Financial Times Prentice Hall.

Mithas, S., Ramasubbu, N., & Sambamurthy, V. (2011). How Information Management Capability Influences Firm Performance. MIS Quarterly, 35(1), 237–256.

Mithas, S., Tafti, A., & Mitchell, W. (2013). How a Firm’s Competitive Environment and Digital Strategy Posture Influence Digital Business Strategy. MIS Quarterly, 37(2), 511–536.

Mostaghel, R., Oghazi, P., Beheshi, H. ., & Hultman, M. (2015). Strategic use of enterprise systems among service firms: Antecedents and consequences. Journal of Business Research, 1544–1549.

Newkirk, H. E., & Lederer, A. L. (2006). The effectiveness of strategic information systems planning under environmental uncertainty. Information & Management, 43(4), 481–501.

Ong, T. S., & Teh, B. H. (2009). The use of financial and non-financial performance measures in the Malaysian manufacturing companies. The IUP Journal of Accounting Research and Audit Practices, 8(1), 23–30.

Ouakouak, M. L., & Ouedraogo, N. (2013). The mediating role of employee strategic alignment in the relationship between rational strategic planning and firm performance: A European study. Canadian Journal of Administrative Sciences, 30(3), 143–158.

Papke-Shields, K. E., Malhotra, M. K., & Grover, V. (2006). Evolution in the strategic manufacturing planning process of organizations. Journal of Operations Management, 24(5), 421–439.

Park, S., Lee, H., & Chae, S. W. (2017a). Rethinking balanced scorecard ( BSC ) measures : formative versus reflective measurement models.

Park, S., Lee, H., & Chae, S. W. (2017b). Rethinking balanced scorecard (BSC) measures: formative versus reflective measurement models. International Journal of Productivity and Performance Management, 66(1), 92–110.

Pavlou, P. A., & El Sawy, O. A. (2006). From IT Leveraging Competence to Competitive Advantage in Turbulent Environments: The Case of New Product Development. Information Systems Research, 17(3), 198–227.

Pavlou, P. A., & El Sawy, O. A. (2010). The “third hand”: IT-enabled competitive advantage in turbulence through improvisational capabilities. Information Systems Research, 21(3), 443–471.

Philip, G. (2007). IS Strategic Planning for Operational Efficiency. Information Systems Management, 24(3), 247–264.

Ray, G., Wu, D., & Konana, P. (2009). Competitive environment and the relationship between IT and vertical integration. Information Systems Research, 20(4), 585–603.

Ringle, C. M., Bido, D. S., & Da Silva, D. (2014). Structural equation modeling with the SmartPLS. Brazilian Journal of Marketing, 13(2), 53–76.

Ringle, C. M., Sarstedt, M., & Straub, D. W. (2012). Editor´s Comments: A Critical Look at the Use of PLS-SEM. MIS Quarterly, 36(1), iii–xiv.

Ringle, C. M., Wende, S., & Will, A. (2005). SmartPLS 2.0.M3. Hamburg: SmartPLS. Retrieved from

Rouhani, S., Ashrafi, A., Ravasan, A. Z., & Afshari, S. (2016). The impact model of business intelligence on decision support and organizational benefits. Journal of Enterprise Information Management, 29(1), 19–50.

Sabherwal, R., & Chan, Y. E. (2001). Alignment Between Business and IS Strategies: A Study of Prospectors. Information Systems Research, 12(1), 11–33.

Sabherwal, R., & King, W. R. (1995). An Empirical Taxonomy of the Decision-Making Processes Concerning Strategic Applications of Information Systems. Journal of Management Information Systems.

Schilke, O. (2014). On the Contingent Value of Dynamic Capabilities for Competitive Advantage: the Nonlinear Moderating Effect of Environmental Dynamism. Academy of Management Journal, 51(2), 179–203.

Segars, A. H., & Grover, V. (1998). Strategic Information Systems Planning Success: An Investigation of the Construct and Its Measurement. MIS Quarterly, 22(2), 139–163.

Segars, A. H., Grover, V., & Teng, J. T. C. (1998). Strategic information systems planning: Planning system dimensons, internal coalignment, and implications for planning effectiveness. Decision Sciences, 29(2), 303.

Shollo, A., & Galliers, R. D. (2016). Towards an understanding of the role of business intelligence systems in organisational knowing. Information Systems Journal, 26(4), 339–367.

Singh, S. K., Watson, H. J., & Watson, R. T. (2002). EIS support for the strategic management process. Decision Support Systems, 33(1), 71–85.

Song, M., Zhao, Y., Arend, R. J., & Im, S. (2015). Strategic planning as a complex and enabling managerial tool. Strategic Management Journal.

Sosik, J. J., Kahai, S. S., & Piovoso, M. J. (2009). Silver Bullet or Voodoo Statistics?: A Primer for Using the Partial Least Squares Data Analytic Technique in Group and Organization Research. Group & Organization Management, 34(1), 5–36.

Tallon, P. P., Kraemer, K. L., & Gurbaxani, V. (2000). Executives’ Perceptions of the Business Value of Information Technology: A Process-Oriented Approach. Journal of Management Information Systems, 16(4), 145–173.

Teubner, R. A. (2013). Theory, Practice, and Challenges for Future Research. Business & Information Systems Engineerin, 5(4), 243–257.

Urbach, N., & Ahlemann, F. (2010). Structural equation modeling in Information Systems research using partial least squares. Journal of Information Technology Theory and Application, 11(2), 5–40.

Vijayasarathy, L., & Sabherwal, R. (1994). An empirical investigation of the antecedents of telecommunication-based interorganizational systems. European Journal of Information Systems.

Wade, M., & Hulland, J. (2004). the Resource-Based View and Information Systems Research: Review, Extension, and Suggestions for Future Research. MIS Quarterly, 28(1), 107–142.

Ward, J. M. (2012). Journal of Strategic Information Systems Information systems strategy : Quo vadis ? Journal of Strategic Information Systems, 21(2), 165–171.

Whittington, R. (2014). Journal of Strategic Information Systems Information Systems Strategy and Strategy-as-Practice : A joint agenda q. Journal of Strategic Information Systems, 23(1), 87–91.

Wilden, R., & Gudergan, S. P. (2015). The impact of dynamic capabilities on operational marketing and technological capabilities: investigating the role of environmental turbulence. Journal of the Academy of Marketing Science, 43(2), 181–199.

Wolf, C., & Floyd, S. W. (2017). Strategic Planning Research: Toward a Theory-Driven Agenda. Journal of Management, 43(6), 1754–1788. Retrieved from

Yayla, A. A., & Hu, Q. (2012). The impact of IT-business strategic alignment on firm performance in a developing country setting: exploring moderating roles of environmental uncertainty and strategic orientation. European Journal of Information Systems, 21(4), 373–387.

Yoshikuni, A. C., & Albertin, A. L. (2014). Model Analysis of the Relationship Between Strategic Organization Knowledge and the Use of Information Systems in Firm Performance in Brazil. Chinese Business Review, 13(5), 301–319.

Yoshikuni, A. C., & Albertin, L. A. (2017). IT-Enabled Dynamic Capability on Performance : an Empirical Study of. RAE, 57(maio-jun), 215–231.

Yoshikuni, A. C., Favaretto, J. E. R., Albertin, A. L., & Meirelles, F. S. (2018). The Influences of Strategic Information Systems on the Relationship between Innovation and Organizational. Brailian Business Review.

Yoshikuni, A. C., Machado-da-silva, F. N., Albertin, A. L., & Meirelles, F. S. (2014). Strategy as a mediator of the relationship between use of is and business performance. REBRAE-Revista Brasileira de Estratégia, 7(maio/ago), 223–241.


Copyright (c) 2018 Adilson Carlos Yoshikuni, Alberto Luis Albertin

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Journal of Public Administration and Governance  ISSN 2161-7104


Copyright © Macrothink Institute

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.