Strategic Role of Information Technology in a Multinational Company

Abstract

The purpose of this case study research is to study the strategic role that information technology (IT) plays in two subsidiaries - located in Egypt and Sweden - of a multinational company with a federal organizational structure. Using a well-established evaluation framework and a widely accepted model, we examine two important aspects of the strategic role of IT: i) how IT supports business and organizational strategy; and ii) the maturity of business and IT strategy alignment. The case study discusses the importance of having a balanced relationship among business strategy, information strategy, organizational strategy, and the way in which business and IT managers should act to improve business-IT alignment, also referred to as strategic alignment. Based on the results of the comparative analysis of the two companies, the research presents concrete recommendations that IT decision-makers from the two subsidiaries of the multinational company should consider to improve IT performance.