Information Processing Design Choices, Strategy, and Risk Management Performance.

Author List: Fairbank, James F.; Labianca, Giuseppe; Steensma, H. Kevin; Metters, Richard;

Journal of Management Information Systems, 2006, Volume 23, Issue 1, Page 293-319.

We examined the relationship between information technology (IT) and organizational performance in the U.S. life/health insurance industry by applying and testing Galbraith's information processing theory and strategic contingency theory. Rather than focusing on resource allocations in IT, we instead examined the manner in which IT is deployed in organizations through information processing design choices. Our results suggest that while some information processing design choices are generally related to organizational performance, others should be matched to a specific strategic posture. For example, we found that all organizations benefit from using IT to increase cost-effectiveness. However, other uses of IT should be more closely aligned with an organization's strategy. In particular, domain offensive organizations should align their IT systems to focus on the front end of their operations and understanding customer needs, which will spur further innovation.

Keywords: information processing; information technology; risk management performance; strategic contingency

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List of Topics

#229	0.200	alignment strategic business strategy performance technology value organizational orientation relationship information misalignment matched goals perspective fit firms executives argue need
#170	0.177	information processing needs based lead make exchange situation examined ownership analytical improved situations changes informational examine developed receive perceptions facilitates
#35	0.129	technology organizational information organizations organization new work perspective innovation processes used technological understanding technologies transformation consequences perspectives use administrative economic
#214	0.076	resource resources allocation chargeback manager effectiveness problem firms case gap allocating diverse dependence just bridge cooperative criticality acquisition duplication extent
#270	0.063	design designs science principles research designers supporting forms provide designing improving address case little space criteria methods increasing synthesis designer
#264	0.055	risk risks management associated managing financial appropriate losses expected future literature reduce loss approach alternative mitigate failures failure cause mitigation