IT/IS implementation risks and their impact on firm performance

There has been considerable theoretical work on the role of information systems (IS) in creating competitive advantage and enhancing organizational performance. The literature identifies a consistent lack of success by organizations in achieving business benefits from their IS investments and in particular their difficulties in obtaining a sustainable competitive advantage. A great deal of debate appears to exist nowadays related to the participation of information technology (IT) risks to organizational performance. Previous research has dealt with the examination of the existing relationships between the implemented information technology and firm's performance variables. This research focuses on the IT impact on firm's non-financial IT risk. The research was conducted using questionnaires that were sent to world's five hundred largest corporations as they were published in the fortune magazine (European edition, No. 14, 2003) and to Greek companies. The results indicate that IT risk factors affect mainly coordination and partially information ability but not productivity. Furthermore, the most significant risk factors affecting business performance are management ability, information integrity, controllability and exclusivity.