Technology Strategy and Firm Performance

Based on management and particularly technology management literature, success of a firm depends on theeffective integration of its technology strategy with its business or corporate level strategies. The question thatarises is how this integration should be achieved. Based on the theory of Strategic Reference Points (SRP),organizations can select reference points for integration and then integrate their elements and systems with it.According to this theory, to define and integrate strategies, firms can define their strategic reference points andthen design strategies based on them. However, to study several firms together, unique reference points areneeded. In this study, control and focus were selected as strategic reference points and a hypothesis was raisedthat integrating technology and corporate strategies around these reference points can lead to higherperformance. This hypothesis was tested in 78 SMEs and it was found that certain types of integration betweencorporate and technology strategies are associated with higher performance.

Keywords:

Strategy , technology , integration , performance , strategic reference points