Organisations appear to make the choice of where they utilize their information capacity as part of their strategic decision making. The nature of an organisations espoused strategy was found to align well with the information dimensions
Espoused Strategy |
Aligned with |
Operational Excellence |
Scale |
Product Leadership |
Complexity |
Customer Intimacy |
Diversity |
There was evidence that the closer the companies espoused strategy mix was to its measured position on the three information dimensions the higher its reported Net Margin %.
The research has shown that the organisational reaction of business units to external and internal factors differs significantly depending on which particular dimension they have selected to focus their information processing capacity.
The more uncertaintythat existed in the external environment, the more likely an organisation is to focus on the Scale dimension and utilize its information processing capacity doing a limited number of things as efficiently as possible.
A uncertain external environment seems to be avoided by or unfavourable to organisations that execute complex information intensive transactions.
Very limited linkage was found between the classic Organisation dimensions and the transaction dimensions. However one exception was that
Increased formalization in organisations is associated with increased deployment of IT locally to the users and to higher levels of IT use by managers.
The degree of centralization exhibited by organisations does not appear to be related to any of the variables studied, however there is an unexpected inverse relationship between the degree to which organisations are centralized managerially and the extent to which they use centralized Information Systems. This may be a question of substitution, centralized IT may allow the imposition of centralized control whilst offering the appearance of decentralization.
As expected from other studies the level of IT deployed is strongly related to the level of education of staff.