Strategic alignment maturity criteria as a catalyst for enhancing operational excellence in Jordanian industrial companies

Adel Al-Hashem,Tareq Abu Orabi

doi:10.5267/j.msl.2020.12.001

Abstract

High convergence level of strategic alignment between business and information technology helps companies enhance operational excellence. This research aims to identify strategic alignment maturity criteria level and their impacts on operational excellence in Jordanian industrial companies. The population of the study consists of all managers at top and middle management and a purposive sample is used to answer questionnaire items. In this survey, 288 valid responses are collected for analysis using SPSS (20) and smart PLS "V. 3". The study reveals that there is a significantly positive impact of strategic alignment maturity criteria (communication, competency-value Measurement, governance, partnership, scope & architecture and skills) on operational excellence. The most maturity criteria have a mid-level of maturity except scope & architecture and competency-value measurement criteria which maintain a low level. Thus, the study concluded that the researched companies have to recognize the business value of information technology (IT) investment and harmonizing IT architecture with business structure.

Highlights

Business firms continuously seek to find new business models to achieve operational excellence and differentiate themselves from others
Strategic alignment maturity between business and information technology has been recognized as a business model to avoid the failure of information technology investments to improve institutional performance and, in particular, the operational excellence (Henderson & Venkatraman, 1993)
This study aims to explore the relationship between strategic alignment maturity criteria and operational excellence in the industrial companies in Jordan which are considered the backbone of

Summary

Introduction

Business firms continuously seek to find new business models to achieve operational excellence and differentiate themselves from others. Operational Excellence may be achieved when information technology, business process and employees' skills are aligned to increase productivity growth and decreased operational costs (Schneider, 2003). For this reason, business firms seek to survive in the market place and to gain sustainable competitive advantage by achieving operational excellence (Jovane et al, 2008). This study aims to explore the relationship between strategic alignment maturity criteria (communication, competency-value Measurement, governance, partnership, scope & architecture and skills) and operational excellence in the industrial companies in Jordan which are considered the backbone of the economy.

Objectives

Methods

Results