Abstract
In many review articles or studies, the researchers have encouraged further exploration on the causal links between Information Technology (IT) investments and a firm’s sustainable competitive advantage. The outcomes of empirical studies have been inconclusive, which is to a certain extent due to the omission of IT-business strategic alignment. Indeed, strategic alignment has emerged as one of the most important issues facing business and IT executives all over the world. This paper reports on the empirical investigation of the success factors, which consist of leadership, structure and process, service quality, and values and beliefs, which are representative of the culture gap between IT strategy and business strategy. A questionnaire survey among 200 IT managers was carried out and 172 data sets were collected. This represented a 86% response rate. After a rigorous data screening process including outliers, normality, reliability and validity, 172 data sets were ready for structural equation modelling (SEM) analysis. Confirmatory Factor Analysis (CFA) was performed to examine the composite reliability, convergent validity and goodness of fit of the individual constructs and measurement models. The revised structural model demonstrates the relationships between all the four exogenous variables and IT-business strategic alignment, and all the four exogenous variables and sustainable competitive advantage. In addition, regarding the revised model there are two mediating effects of strategic alignment in the relationship between leadership, structure and process, service quality, values and beliefs, and sustainable competitive advantage. Keywords: Strategic alignment, alignment gap, information technology, sustainable competitive advantage.
Highlights
In order to improve their performance, firms invest heavily in Information Technology (IT) such as hardware, software, network, and data components (Oana, 2010)
This is done by exploring the relationships between several factors on IT-business strategic alignment to achieve sustainable competitive advantage and how strategic alignment can mediate the relationship between these factors and sustainable competitive advantage
The questionnaire for this study consists of five parts: Part one consists of a cover letter explaining the title of the study and the purpose of the questionnaire; Part two consists of questions concerning the respondents demographic profile; Part three contains the four latent constructs that are hypothesised to influence strategic alignment in Jordan; Part four contains the strategic alignment; and Part five contains the sustainable competitive advantage
Summary
In order to improve their performance, firms invest heavily in IT such as hardware, software, network, and data components (Oana, 2010). For organizations to stay competitive in a dynamic business environment, they have to determine and understand how to manage IT strategically as a key success factor for a successful business in a dynamic business environment that supports business strategies and processes (Henderson & Venkatraman, 1993). The current study will contribute to IT-business strategic alignment literature by investigating a new theoretical approach to strategic alignment that has not been explored in the field of IS. This is done by exploring the relationships between several factors (i.e. leadership, structure and process, service quality, and values and beliefs) on IT-business strategic alignment to achieve sustainable competitive advantage and how strategic alignment can mediate the relationship between these factors and sustainable competitive advantage
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