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Segars, A. H., Grover, V., and Kettinger, W. J. 1994. "Strategic Users of Information
Technology: A Longitudinal Analysis of Organizational Strategy and Performance," The Journal of Strategic Information Systems(3:4), pp. 261-288.
While discussed extensively, very few studies have attempted to formally integrate
the notions of organizational strategy, competitive advantage, and the strategic use
of information technology. Utilizing the typology of Miles and Snow, this study attempts
to identify the strategic orientation (prospector, analyzer, defender) of widely cited
users of ‘strategic information technology’ before and after the launch of their innovative
systems. Also, measures of financial performance are compared between emergent groups
in order to determine if any particular strategic orientation consistently outperforms
the others. In general, this study reports four findings. First, it appears that strategic
users of information technology are not concentrated along a singular strategic dimension.
The firms examined in this study exhibited characteristics associated with each of
Miles and Snow's strategy types. Second, it seems that many firms shifted strategic
orientation after the launch of their systems. Interestingly, these shifts were rather
dramatic and seem to represent a fundamental change in strategic direction from earlier
‘pre-system’ operating philosophies. Third, case descriptions along with narratives
of annual reports suggest that usage or competitive intent of these strategic systems
matches the prevailing strategic profile of the initiating firms. In other words,
the systems seem to support organizational strategy. Finally, it seems that prospectors
and defenders realized significantly higher measures of financial performance immediately
after the implementation of ‘strategic information technology’; however, in the long-term
no strategic orientation seemed to outperform the others.
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