Organizational Performance: The Influence of Quality of IS Information, Environmental Integration, Product Innovation, and Product Quality

Alan S Dunk
University of Canberra

Abstract: Organizational performance in terms of its financial and nonfinancial dimensions is attracting considerable research attention. Paralleling this work has been consideration in the literature of factors that may affect performance from the perspective of the balanced scorecard. Four specific factors are the subject of attention in this paper, namely quality of information system information, corporate environmental integration, product innovation and product quality. This study investigates the extent to which these variables influence organizational performance in terms of its financial and nonfinancial dimensions. All four independent variables were found to enhance organizational performance assessed in nonfinancial terms. In contrast, the results show that product innovation alone influences financial performance. The findings of this study suggest that the efficacy of factors addressing balanced scorecard categories may be more effectively assessed by evaluating their impact on organizational performance measured in nonfinancial terms.

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