ALIGNMENT OF BUSINESS AND INFORMATION STRATEGIES AND ITS IMPACT ON BUSINESS PERFORMANCE

Björn Johansson,František Sudzina,Andreja Pucihar

doi:10.3846/16111699.2012.749806

Björn Johansson, František Sudzina + Show 1 more

Open Access

https://doi.org/10.3846/16111699.2012.749806

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Abstract

Alignment between business strategy and information strategy has been focused on for several years with research suggesting different explanations to how this alignment influences a firm's performance. This article presents results from an investigation of firms in Slovenia about how business people perceived their business strategy and information strategy to be aligned. Respondents’ statements from the questionnaire survey on their perceived alignment between business strategy and information strategy were checked against the firms’ revenue growth. The analysis of perceived alignment between business strategy, information strategy, and revenue growth shows that there is a significant relationship between alignment and revenue growth in Slovenia, and this link is positive. Managers should aim to align business and information strategies in order to achieve better business performance.

Highlights

There has been a great deal of research on the relation between business processes and information strategies (Luftman et al 2006), focusing on alignment and how it improves business performance
The research question is whether there is a significant impact of perceived alignment of information and business strategies, and company size on revenue development, using as powerful test as possible
Our investigation of perceived alignment between business strategy, information strategy, and revenue growth shows that there is a significant relationship between alignment of business and information strategies and revenue growth in Slovenia

Summary

Introduction

There has been a great deal of research on the relation between business processes and information strategies (Luftman et al 2006), focusing on alignment and how it improves business performance. In relation to Renaud and Kalika, Tallon’s work suggests a positive relationship between alignment and perceived IT business value From this discussion of the different explanations on how alignment influences firms’ performance, we have formulated the following research question: Does alignment of business and information strategies have an impact on firms’ revenue development? This research explores the views of Renaud and Kalika (2008), as well as that of Tallon (2007), and from the empirical data we investigate whether alignment between business strategies and information strategies influences firms’ business performance. The final section offers conclusions and implications for future research

A literature review on alignment

Data and methodology

Results

Conclusions and future research