The effect of fit between competitive strategy and it adoption on organizational performance in small banks

Abstract

The exploratory study empirically investigates the effect of congruence (fit) between information technology (IT) and competitive strategy on organizational performance. Building on anecdotal evidence and existing theory, a conceptual model of strategy-IT fit is derived. The model is tested through moderated regression analysis of data from 156 small banks. The results suggest that the level of technology adoption in itself bears no relationship to financial performance. IT-strategy congruence, however, is associated significantly with organizational performance.