Abstract
Despite a plethora of studies that demonstrate the positive impact of information technology (IT) alignment on firm performance, our understanding of the processes through which such gains are achieved in the small-to-medium enterprise (SME) context remains limited. This study fills this gap by exploring the role of IT alignment in the development of partnership competence and agility at the SME level. Using data from 310 SMEs in Australia, we find positive, significant, and impactful sequential linkages between IT alignment, partnership activities, agilty and SME performance. We also show that partnership activities and agility fully mediate the relationship between IT alignment and SME performance. This study suggests the critical role of IT alignment in SME success. These findings have important implications for business practices.
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