Abstract
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.
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