Towards better understanding of the process of business value creation from strategic information systems: Testing the moderating and mediating effects of organization capabilities

The key concern in information systems research has been to have better understanding of the relationship between investment in strategic information systems (SIS) and organizational performance. Due to the nature of the variables included in the research models and the research designs employed, prior studies have been unable to provide a richer explanation of “why” and “how” SIS investments enhance organizational performance. This study synthesizes several theoretical perspectives (including: process-oriented, resource-based, and real options) to explore the role of SIS assimilation and IT infrastructure in obtaining business value from SIS. The data analysis contributes new evidence that the main driver of SIS performance is not investment in the technology, but the assimilation of the technology in organizations’ business strategies and activities. The findings also contribute evidence about the interrelations between IT infrastructure sophistication and SIS assimilation, and their impact on SIS payoff at two levels: business process and organizational (competitive).