The interaction effect of IT assets and IT management on firm performance: A systems perspective

The multifaceted role of information technology (IT) in organizations has been extensively examined. However, the interaction between IT assets and IT management and its impact on firm performance remains less clear. In this paper, we adopt a systems perspective to further examine this important mechanism. In particular, we investigate how IT assets and IT management, as key subsystems within the larger organization system, interact to jointly impact organizational performance. Building on systems theory's notion of open systems, we also examine how the organization and its sub-systems are impacted by the environment in which it is located. Specifically, we investigate how environmental dynamism permeates the boundaries of the organization to moderate the interaction between the IT assets and IT management subsystems. A matched-sample of 214 business executives and IT managers is used for testing the hypotheses.