A field survey was conducted to determine key organizational factors that facilitate and/or inhibit the development of strategic applications of information technology (IT) in business firms. A comprehensive list of potential facilitators and inhibitors for the strategic use of information technology was derived from past research and used as the basis for collecting data from 121 firms. These data were factor-analyzed to determine the key underlying dimensions of facilitators and inhibitors. On the basis of the resulting seven dimensions, stepwise discriminant analysis was used to compare companies that have used IT applications for strategic purposes and companies that have not done so. The results suggest that innovative needs, competitive position, environment, economies of scale, and top management guidance are the most important facilitators, while the lack of IT drivers, the lack of economies of scale, and the lack of innovative needs are the most important inhibitors.