Knowledge strategy planning and information system strategies enable dynamic capabilities innovation capabilities impacting firm performance

Purpose Many studies have not fully explored the relationship between knowledge and information system strategies (ISS) and their overall impact on firm performance (FP). In an attempt to address this knowledge gap, this study draws on the dynamic capabilities view, and on recent literature on knowledge strategy planning (KSP), and examines the alignment between KSP and ISS to enable dynamic capabilities innovation capabilities (DCIC) to gain FP. Design/methodology/approach The survey examined empirical data from 234 Brazilian companies using the partial least squares path modeling to test the hypotheses proposed herein. Findings The empirical results confirmed that both KSP and ISS have a positive impact on DCIC. Furthermore, the results indicated that FP was positively impacted through DCIC. The results indicated that the alignment between KSP and ISS positively impacts DCIC and ultimately FP. Research limitations/implications The data was collected from 234 Brazilian companies in a country classified as a developing economy. Future studies could investigate the impact of KSP and ISS on FP in developed economies. The practical implication of the study required managers to be knowledgeable about the value of alignment between KSP and IT capabilities involving more practitioners in the strategy-as-practice to create innovation capabilities and enhance FP. Originality/value This is one of the earliest studies that has investigated the relationships between KSP and ISS and their impact on FP within a developed economy context. The relationship between all constructs that have not been addressed previously contributes to extend the literature on KSP, ISS and dynamic capabilities view.