A Simulation Based Analysis of the Value of Information in the Hrebiniak Joyce Typology of Adaptation Relative to Porter’s Generic Strategies

Abstract

This study presents information that suggests that Hrebiniak and Joyce’s Typology of Adaptation contains an information value bias. The quadrants of their typology, as they relate to Porter’s generic strategy types, are shown to produce different locally maximized returns on investment. This result, supported by the analysis of data obtained from a simulation that was developed from a popular business game, lends itself to the argument that there is an optimal amount of funding that specific generic strategy types should be willing to commit to Information Systems technology. From a practical standpoint, the implied bias in information value may demonstrate that organizations may experience a diminishing rate of return on Information Systems investments. Further, it lays the groundwork for future research into implications that discontinuous economic conditions may introduce into the typology relative to the implicit information bias.