The relationships between firm size, prospector strategy, architecture of information technology and firm performance

Abstract

Previous studies have investigated the effects of the use of information technologies with organizational variables on firm performance. Some of these organizational variables are the firm size, the business strategy and the architecture of information technology. The main contribution of this study is to investigate the impact of firm size, information system and the technological architecture associated with prospector strategy on performance of firms operating in Isparta, in Turkey. The technological architecture was identified for the profiles of technological deployment by Croteau and Bergeron (2001). This study also focuses on the interactions between firm size, prospector strategy, technological architecture and firm performance. The main aim of this study is to identify the relationships between firm size and the technological architecture on prospector strategy that support the firm performance best. In this study the technological architecture was identified. The firm size has been measured in terms of employment. Today, environmental conditions (rapid change, technological development, globalization, etc.) offer many opportunities to firms. For this reason, the strategic activity has been taken as prospector. The firm performance is based on the sales growth and profitability.