Abstract
The correct use of information technology (IT) in business is a longstanding critical issue due to the competitive advantages and performance that IT generates when it is managed strategically and correctly aligned with a business’ strategies and processes. A conceptual model is presented to investigate the effects of intangible assets and organizational capabilities on business-IT strategic alignment. Social networks between business and IT executives conform to relational capital that permits the creation of combinative capabilities; these capabilities encourage the transfer, integration, learning, and strategic use of business and IT executives’ knowledge, and affect the level of strategic business-IT alignment. This combination of social-network characteristics and organizational capabilities in order to generate strategic business-IT alignment is new.
Highlights
In almost all business sectors, information technology (IT) is considered an important tool for achieving performance in a firm, expressed in operational effectiveness, financial profitability, business agility, competitive advantage, and adaptability to a business environment
Intangible assets play an important role in constructing business-IT strategic alignment
Intangible assets play an important role in constructing business‐IT strategic alignment
Summary
In almost all business sectors, information technology (IT) is considered an important tool for achieving performance in a firm, expressed in operational effectiveness, financial profitability, business agility, competitive advantage, and adaptability to a business environment. The introduction and effective use of IT in enterprises are not simple, and often do not achieve the planned objectives This situation is worse if IT is not managed, or planned and executed, with its strategic aspects in mind. This research is of theoretical interest because it may improve the understanding of how factors combine to affect the process of strategic business-IT alignment. The research problem of characterizing and explaining relationships between intangible assets and the strategic-alignment process has social implications due to the interests of business and IT managers in working in an integrated and effective manner, and in reducing problems, inefficiencies, and disconnected strengths inside the organization, thereby closing the gap between business and IT.
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