Information Systems Orientation and Business Use of the Internet: An Empirical Study

:A research model based on the concept of a strategic grid was developed to examine the relationship between the role of information systems (IS) and organizational use of the Internet to achieve business competitiveness. A survey questionnaire was sent to 650 companies in Singapore, and 225 usable responses were obtained. The results indicated that firms with a more strategic view of IS make the most use of the Internetlo achieve business competitiveness (in terms of the customer-te-business, intra business, and business-to-business dimensions). In particular, achieving market responsiveness (construct within the customer-to-business dimension) was the most significant differentiating variable in the extent of Internet usage among organizations in which IS plays different roles. Although other performance measures are important in designing an Internet strategy, this suggests that market responsiveness should receive special emphasis, since the Internet’s global nature enhances access to new markets.