A research model based on the concept of a strategic grid was developed to
examine the relationship between the role of information systems (IS) and o
rganizational use of the Internet to achieve business competitiveness. A su
rvey questionnaire was sent to 650 companies in Singapore, and 225 usable r
esponses were obtained. The results indicated that firms with a more strate
gic view of IS make the most use of the Internet to achieve business compet
itiveness (in terms of the customer-ta-business, intrabusiness, and busines
s-to-business dimensions). In particular, achieving market responsiveness (
construct within the customer-to-business dimension) was the most significa
nt differentiating variable in the extent of Internet usage among organizat
ions in which IS plays different roles. Although other performance measures
are important in designing an Internet strategy, this suggests that market
responsiveness should receive special emphasis, since the Internet's globa
l nature enhances access to new markets.