Alignment Between Business and IS Strategies: A Study of Prospectors, Analyzers, and Defenders

• Published in: Information systems research Vol. 12; no. 1; pp. 11 - 33
• Main Authors: Sabherwal, Rajiv, Chan, Yolande E
• Format: Journal Article
• Language: English
• Published: Linthicum INFORMS 01.03.2001; The Institute for Operations Research and the Management Sciences (INFORMS); Institute for Operations Research and the Management Sciences
• Subjects: Alignment; Business structures; Business surveys; Computer software industry; Corporate strategies; Defenders, Analyzers, Prospectors; Efficient strategies; Information management; Information storage and retrieval systems; Information systems; Information Systems Strategy; Information technology; Management information systems; Profile Deviation Approach; Prospecting; Risk aversion; Strategic Information Systems Management; Strategy Profiles; Studies; Technological planning; New York; United States
• ISSN: 1047-7047; 1526-5536
• DOI: 10.1287/isre.12.1.11.9714

Alignment between business strategy and IS strategy is widely believed to improve business performance. This paper examines the impact of alignment on perceived business performance using Miles and Snows popular classification of Defender, Analyzer, and Prospector business strategies. A priori theoretical profiles for these business strategies are developed using Venkatraman's (1989a) measure of business strategy. Theoretical profiles for IS strategies are developed in terms of four types of systems—operational support systems, market information systems, strategic decision-support systems, and interorganizational systems. Empirical data from two multirespondent surveys of 164 and 62 companies, respectively, are analyzed. Results indicate that alignment affects perceived business performance but only in some organizations. Alignment seems to influence overall business success in Prospectors and Analyzers but not in Defenders. Implications for future research and practice are discussed.