The Performance Impacts of Quick Response and Strategic Alignment in Specialty Retailing

Abstract

The Quick Response (QR) program is a hierarchical suite of information technologies (IT) and applications designed to improve the performance of retailers. Consultants advise retailers to adopt the program wholesale, implying that more and higher levels of technology are better than less technology and lower levels. Academicians, on the other hand, argue that good technology is “appropriate” technology. That is firms should adopt only those technologies that suit the specific strategic directions pursued by the firm. Who is right? Which approach to investing in IT yields better performance results? Surprisingly, this cross-sectional survey of 80 specialty retailers found more support for the practitioners' claims than for the academicians'. Adoption of the QR program at a minimal level was associated with higher performance, although there was no performance impact due to higher levels of QR use. Firms did appear to match their IT usage to their business strategies, but there was no linkage between strategic alignment and firm performance, and there was surprisingly little variation in business or IT strategy. In short, the findings of our study suggest that both practitioners and academicians need to refine their theories and advice about what makes IT investments pay off.