Achieving Optimal Business-IT Alignment in Small Firms: A Dynamic Perspective

Abstract

This study uses Charmaz's (2006) constructivist grounded theory to examine how small enterprises dynamically connect IT adoption with business goals. To explore small company IT alignment practices, the research uses a qualitative approach to conduct in-depth interpretive interviews with 31 owner-managers. The study methodically analyses grounded data to find processes and concept interrelationships, examining contextual elements, actions, reactions, repercussions, and results. This analysis creates a new framework for business-IT alignment: adaptation, anticipation, synchronisation, and collaboration. Each state shows how small enterprises balance technological and commercial goals, presenting a detailed view of how they do so. This reactive alignment method allows small enterprises to adapt their IT plans to external changes or business needs. Anticipation is a proactive alignment strategy that positions organisations to strategically harness technological advances by anticipating future business and IT needs. Synchronisation occurs when IT and business strategy match in real time, harmonising IT systems and business operations. Collaboration involves deeper integration where IT and business goals are co-created through communication and cooperation. The study's methodology helps policymakers, researchers, and small firm owner-managers predict and analyse business-IT alignment behaviours. This methodology diagnoses alignment states and improves IT adoption strategies and business objectives-IT integration. These findings are important for IT-business alignment theories, especially in small enterprises with resource restrictions and unpredictable contexts.