The impact of time on the strategy–performance relationship
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TL;DR
This study examined the influence of cycle time and the application of strategic information technology on the relationship between business strategies identified during the course of the research and firm performance and indicated a significant, positive relationship of a market differentiation strategy to SIT to cycle time to performance.
Abstract
This study examined the influence of cycle time and the application of strategic information technology (SIT) on the relationship between business strategies identified during the course of the research (i.e., marketing differentiation, innovation differentiation and overall low cost) and firm performance (i.e., ROA, ROS). Data from a cross-industry sample of 116 executives in manufacturing and service businesses were collected using a web-based survey, conducted in cooperation with InformationWeek, a leading information technology industry magazine. Results of a path analysis indicated a significant, positive relationship of a market differentiation strategy to SIT to cycle time to performance. Strong positive direct relationships were evident for SIT to cycle time and for cycle time to performance. No other significant relationships were observed.
