The Impact of Incremental Strategic Information Systems Planning in an Uncertain Environment

The external environment plays a major role in the success or failure of many organizations. Researchers have suggested that more incremental strategic information systems planning (SISP) in an uncertain environment produces greater planning success. The purpose of this study was to test the effect of incremental SISP on planning success in environments of varying dynamism, heterogeneity, and hostility. Using five-point Likert-scales, a questionnaire operationalized SISP in terms of the characteristics of incremental planning; environmental uncertainty in terms of dynamism, heterogeneity, and hostility dimensions; and planning success as composed of alignment, analysis, cooperation, and capabilities factors. Five IS executives pilot tested the instrument. A postal survey then collected data from 161 IS executives. The constructs were extensively validated. In general, greater incrementalism in planning predicted less planning success, but dynamism moderated the impact of incremental SISP on SISP success whereas heterogeneity and hostility did not. These findings suggest that planners are more successful when shifting toward greater incrementalism in a more dynamic environment.