How does business-IT strategic alignment dimension impact on organizational performance measures Conjecture and empirical analysis

Purpose Despite the conceptual, empirical and theoretical advances in alignment–performance relationship, there is a limited research on the alignment dimensions and organizational performance measures. Though strategic alignment is believed to improve organizational performance, the purpose of this...

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Bibliographic Details
Published inJournal of enterprise information management Vol. 32; no. 3; pp. 457 - 476
Main Authors Ilmudeen, Aboobucker, Bao, Yukun, Alharbi, Ibraheem Mubarak
Format Journal Article
LanguageEnglish
Published Bradford Emerald Group Publishing Limited 04.06.2019
Subjects
Alignment
Business
Competition
Customer services
Data acquisition
Decision making
Digital music
Empirical analysis
Human performance
Hypotheses
Marketing
Product development
Research methodology
Strategic planning
Studies
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Summary:Purpose Despite the conceptual, empirical and theoretical advances in alignment–performance relationship, there is a limited research on the alignment dimensions and organizational performance measures. Though strategic alignment is believed to improve organizational performance, the purpose of this paper is to develop conjectures for understanding how different alignment dimensions influence organizational performance measures. Design/methodology/approach The data were acquired from 161 senior IT and business managers paired responses in China and were analyzed by using a structural equation modeling technique. Findings The hypothesized relationships are largely supported. Thus, quality-oriented strategic alignment dimension has a significant relationship with all performance measures. Contrary to expectations, both product and marketing-oriented strategic alignment dimensions do not show a significant impact on financial return. The marketing-oriented strategic alignment dimension also has an insignificant relationship with operational excellence. Practical implications This study suggests that the business–IT alignment can be dimensioned to better combine business strategy and IT strategy. Hence, managers can focus specific alignment dimension instead of entire strategies of a firm for a better decision making. Originality/value Findings suggest guidance for formulating combined business and IT strategic alignment into dimensions and proposing insightful and practical implications.
ISSN:1741-0398
1758-7409
DOI:10.1108/JEIM-09-2018-0197