Linking Organizational Strategy to Information Technology Strategy and Value Creation: Impact on Organizational Performance

Abstract

Previous empirical studies confirm that organizational strategy has a significant and substantive impact on organizational performance. The purpose of this research is to examine the inter-relationships and interactions among organizational strategy, information technology strategy, value creation and organizational performance in the Regional Civil Service Agency (BKD) province of south Sulawesi. The concept of organizational performance was extended to include ‘stakeholder orientation’ items. Model development and hypothesis testing was conducted using Smart-PLS 2.0 on a sample of 196 respondents from 24 Civil Service Agency (BKD). Results show a confirmation of previous studies as it relates to hypothesis testing that the organizational strategy has significant and positive effect on organizational performance directly or through the mediating effect of information technology strategy and value creation. Limitations of the study, that the study was only conducted on city and County government organization then respondents used only the leaders so that limits the generalization of the findings of the research.