Does Organizational Culture Influence IT-Business Alignment and Business Performance in Large Manufacturing Companies?

Abstract

This study examines and analyzes the influence of Organizational Culture on business alignment and business performance in large manufacturing companies. This study used a quantitative research method; data were collected using a questionnaire using SmartPLS 4. This study involved 47 large manufacturing companies as unit analysis with multistage sampling in sample selection, first by purposive sampling and second by the Slovin formula. The results of this study stated that organizational culture affects IT-business alignment significantly but has no effect on the business performance. The collaboration and formalization indicators effect on strengthening organizational culture on IT-business alignment. On the other side, the lack of creative and innovative culture in the organizational culture of manufacturing companies has an impact on failure in supporting business performance. The results of this study provide valuable insight for IT and business executives in developing the organizational culture of large manufacturing companies that is suitable to cope with IT implementation strategically namely IT-business alignment in supporting business performance successfully.
 Keywords: organizational culture, IT-business alignment, business performance