The IS-business relationship and its implications for performance: an empirical study of South African and Australian organisations

Abstract

Lack of a close 'IS-business relationship' has been described as a potential inhibitor to improving the contribution that information systems (IS) make to business performance. Yet the value of specific dimensions of the IS-business relationship remains to be demonstrated by empirically confirming their link to IS performance. Using data collected from 167 South African and Australian companies, this study examined the effect of three dimensions of the IS-business relationship, namely commitment, mutual understanding and shared vision, on IS performance. The study also examines the interrelationship amongst the 'relationship' dimensions. Results revealed that a strong IS-business relationship is a significant determinant of IS performance. Organisations more successful in their use of IS are characterized by strong commitment on the part of the business to IS efforts, higher levels of IS understanding of the business, and a long-term agreement, between business and IS executives, on IS priorities. Results have important implications for organisations looking to improve the contribution of IS to organisational performance.