Information Systems Strategic Alignment Research Articles

Factors Affecting Dynamic Strategic Alignment in a Changing Environment: A Case Study of a Chinese SOE

Abstract Environmental factors significantly affect the dynamic strategic alignment of information systems (IS) in coping with a rapidly changing environment, especially for state-owned enterprises (SOEs) in emerging economies. By examining the case study of a medium-sized Chinese state-owned real estate company, this research aims to investigate what environmental factors affect SOEs’ strategic alignment. The thematic analysis method was used to analyse semi-structured interviews with staffs at all levels of the organisation and relevant strategy documents. The research develops a holistic model to illustrate the influencing factors from SOEs’ internal (i.e., organisational structure, culture and resources) and external environments (i.e., politics, economy, technology and national culture) while highlighting the overall influences from the nature of SOEs. It identifies that organisational resources, whose easy access is enabled by SOEs’ state-owned character, significantly reduce the need for strategic alignment to gain competitive advantage in the short term. In addition, SOEs’ inherent attributes of organisational structure and culture impede the social and structural integration between business and IT. Managerial implications are suggested with a particular emphasis on internal factors, such as developing IS/IT from organisational resources and cultivating the perception of the importance of IS. The paper also points to the importance of implementing government authorities’ policies and instructions about IS strategy.

Organizational culture and information systems strategic alignment

PurposeInformation systems (IS) strategic alignment is a significant chief information officers (CIO) and top management issue because of its impact on a firm’s performance and profitability. Previous studies have primarily examined informal dimension’s influence on IS strategic alignment. Nevertheless, a few research works have emphasised cultural dimension’s effect. The purpose of this paper is to empirically investigate and bring out organisational culture’s influence on IS strategic alignment. Notably, it highlights the most significant culture types, according to the Competing Value Framework (Cameron et al., 2006).Design/methodology/approachEmpirical setting comprises a quantitative approach using a survey based on a sample of 160 business managers (BMs) of 53 large companies located in Tunisia with international activities and being in the post-implementation operational use phase of their enterprise resource planning (ERP) systems. The partial least square (PLS) method has been used for data analysis.FindingsThe results provide an empirical evidence supporting a positive and significant organisational culture’s influence on the IS strategic alignment. The findings also show that “Clan Culture” (Internal/Flexibility-oriented culture) positively influences IS alignment along with the strategic priorities. These findings provide guidance and help understand how, through clan culture, the company can contribute significantly to the success of its ERP systems strategic alignment during the most critical phase, namely, post-implementation.Originality/valueDespite abundant work related to IS alignment topic, little research, to the authors’ knowledge, has been undertaken in considering organisational culture’s influence. Thus, this research aims to fill this gap and to raise new questions about IS alignment. First, this study puts together organisational culture (through the Competing values Framework) and strategic alignment (through the IS use dimension) in a single research model to analyse four culture types’ direct effect on IS alignment. Second, this study is innovative in its use of the ERP post-implementation as an empirical framework. The post-implementation phase is often played down in research work in favour of the upstream pre-implementation phases. Furthermore, the findings bring together theoretical and practical insights on both IS-business strategic alignment and ERP post-implementation. Thus, future research could emphasise the role of clan culture in the efficiency of ERP systems strategic alignment during the usage phase. Building on these findings, BM, CIO and top management are advised to promote this culture type based on communication, information sharing and the spirit of internal partnership – so that their ERP systems are used appropriately and aligned with the company’s strategic priorities.

Antecedents of Strategic Information Systems Alignment in Iran

ABSTRACTFactors affecting business-information technology strategic alignment have been investigated in numerous research studies, mostly in developed countries including Western Europe and North America. Given that the Western world has a distinct business culture, there is reason to investigate the boundaries of the generalizability of these research studies. This article, therefore, investigates strategic alignment in a non-Western, developing-country context, specifically Iran. For this purpose, the antecedents of alignment in the existing literature were investigated. After categorizing them and developing a research model, the model was tested using structural equation modeling. Our main aim is to find out whether the antecedents identified in prior studies are also relevant in Iran. The results provide preliminary evidence of differences between the factors affecting strategic alignment in each region.

The Influence of Shared Mental Models Between the CIO and the Top Management Team on the Strategic Alignment of Information Systems: a Comparison Between Brazilian and US Companies

The gap in the understanding between the chief information officer (CIO) and the management team (TMT) has been cited as a contributing factor to their often troubled relationship. The objective of this study is to examine the development of shared mental models (SMMs) between the CIO and TMT about the role of information systems in the organization. An SMM is conceptualized as a multidimensional construct spanning the dimensions of shared language and shared understanding. The study posits that knowledge exchange mechanisms and relational similarity between the CIO and TMT are key antecedents to the development of SMMs. SMMs between the CIO and TMT are expected to guide the strategic orientation of the organization and may influence strategic alignment and organizational outcomes. The model was tested via a field survey of CIO – TMT pairs using structural equation modeling. Results show that relational similarity and formal mechanisms of knowledge exchange (e.g., formal CIO membership in the TMT, CIO hierarchical level, and formal educational mechanisms by the CIO) are important to the development of SMMs. Contrary to expectations, informal social mechanisms of knowledge exchange and physical proximity were not significantly related to SMMs.

정보화 전략과 기업 전략의 연계가 정보기술 하부구조 구축에 미치는 영향: 전략적 성과평가시스템의 역할

The influence factors on the development of information technology(IT) infrastructure for knowledge management(KM) were not empirically investigated and identified. This study empirically examines the relationships among strategic performance measurement systems(SPMS), organizational learning, the strategic alignment of business strategy with information systems(IS) strategy, which is the necessary condition to provide the kinds of knowledge required for the successful realization of business strategy, and the active construction of IT infrastructure for KM. This study demonstrates that SPMS directly affects the organizational learning, with which the members of an organization acquire the types of knowledge about strategic goals or objectives and the ways attaining these goals, and indirectly influences the IS strategic alignment through organizational learning. Thus, the alignment between business strategy and IS strategy can be facilitated and activated by the adoption and implementation of SPMS. According to the results of this study, it is observed that the IS strategic alignment and organizational learning positively affect the activation of the development of KM IT infrastructure in a firm. The results of this study also shows that the construction of KM IT infrastructure, which supports the realization of KM activities, such as knowledge creation, transfer and sharing, can enhance the strategic position of a firm, and the intensified competitiveness of a firm can lead to the improvement of performance.

Contingent dynamics of IS strategic alignment in small and medium‐sized enterprises

PurposeThis paper seeks to understand how strategic information systems (IS) alignment takes place in small and medium‐sized enterprises (SMEs).Design/methodology/approachThe paper employs a qualitative and quantitative analysis of data from 27 cases.FindingsA contingent model allows re‐interpretation of earlier findings that appear to be inconsistent. First, benefit realisation depends on alignment between IS and business strategies. Second, IS investment is frequently limited to supporting operations and transactions. Third, organizations with more sophisticated IS tend to perform less successfully than those with less complex systems, the greatest alignment and highest performance are reported for systems to improve efficiency, and organizations that adopt a low‐cost approach are unlikely to use IS strategically.Research limitations/implicationsThe paper extends understanding of the contingent nature of SMEs' investment in, and use of, IS, and of the effect of market position on IS management. It provides guidelines by describing the dominant paths to alignment. The limitations are that the SME sample is not random, the scoring protocols rely on author coding, whether the research identifies cycles of alignment, alternative interpretations of path hierarchy, and if an SME's location uniquely defines its alignment path.Originality/valuePerformance is a function of the alignment between IS strategy and other business domains. However, prior research has focused on outcomes, rather than the processes by which alignment is developed. Using multiple case data, this paper investigates alignment in SMEs, explaining why different SMEs follow different paths to alignment. Four paths are identified, with the path chosen contingent on an SME's market position.

Examining the Strategic Alignment and Implementation Success of a KMS: A Subculture-Based Multilevel Analysis

Two important gaps exist in the information systems (IS) alignment research. First, there is scant research on the potential of organizational culture, and specifically subcultures to influence the strategic alignment of IS and organizations. Second, there is a dearth of literature that considers the relationship between alignment and implementation success. In this paper, we address both of these gaps by considering the influence of organizational subcultures on the alignment of a specific IS—a knowledge management system (KMS)—with organizational strategy. Our analysis demonstrates the important roles played by three different subcultures—enhancing, countercultural, and chameleon—in the alignment of the KMS. The analysis also underscores the complementary nature of the alignment and implementation literatures and suggests that they should be used in concert to explain the success of an IS. Drawing on our analysis, we build a subculture model, which depicts the intersection of alignment and implementation. From a managerial perspective, the subculture model highlights three different approaches to managing alignment and implementation. From a theoretical perspective, our paper highlights the need for IS alignment models to be modified, so that subunit-level analyses are incorporated. It also illustrates that organizations confront challenges of alignment and implementation simultaneously rather than sequentially.

Innovation, Information Systems Strategic Alignment and Business Value

For more than two decades the strategic alignment of information systems (IS) is one of the most important issues that IS and business managers face and at the same time a major research topic in the IS domain. In this paper the authors present an empirical study of the business value of IS strategic alignment, which examines IS strategic alignment both at the strategy formulation and implementation level. Also, investigated in this paper are the effects of adopting an innovation strategy on IS strategic alignment. The study is based on firm-level data from Greek companies, which are used for estimating econometric models of firm output based on the Cobb-Douglas production function. It is concluded that IS strategic alignment, both at the strategy formulation and implementation level, generates significant business value, increasing considerably the contribution of ICT investment to firm output. Finally, the adoption of innovation strategy has a positive effect on the strategic alignment of IS both at the strategy formulation and implementation level, as it puts pressure on firms to direct their IS investment towards the support of their new innovative products/services, and increases the involvement of organizational units.

Strategic Information Systems Alignment: Alignment of IS/IT with Business Strategy

Using information systems effectively requires an understanding of the organisation, management, and the technology shaping the systems. All information systems can be described as organisational and management solutions to challenges posed by the environment. The advances in information systems have affect on our day-to day lives . As the technology is evolving immensely so are the opportunities in a healthy way to prepare the organisation in the competitive advantage environment In order to manage the IS/IT based systems, it is important to have an appropriate strategy that defines the systems and provide means to manage them. Strategic Information Systems Alignment (SISA) is an effective way of developing and maintaining the IS/IT systems that support the business operations. Alignment of the IS/IT plans and the business plans is essential for improved business performance, this research looks at the key features of SISA in the changing business circumstances in Saudi Arabia.

Antecedents of IS Strategic Alignment: A Nomological Network

Alignment of information systems (IS) strategy with business strategy is a top concern of both the chief information officer (CIO) and the top management team (TMT) of organizations. Even though researchers and key decision makers in organizations recognize the importance of IS strategic alignment, they often struggle to understand how this alignment is created. In this paper, we develop a nomological network in which shared understanding between the CIO and TMT about the role of IS in the organization (which represents the social dimension of IS strategic alignment) is posited to be a proximal antecedent of the intellectual dimension of IS strategic alignment. We further posit that shared language, shared domain knowledge manifest in the CIO's business knowledge and the TMT's strategic IS knowledge, systems of knowing (structural and social), and CIO-TMT experiential similarity are important determinants of this shared understanding. Data were collected from 243 matched CIO-TMT pairs. Results largely support the proposed nomological network. Specifically, shared understanding between the CIO and TMT is a significant antecedent of IS strategic alignment. Furthermore, shared language, shared domain knowledge, and structural systems of knowing influence the development of shared understanding between the CIO and the TMT. Contrary to expectations and to findings of prior research, social systems of knowing, representing informal social interactions between the CIO and TMT, and experiential similarity did not have a significant effect on shared understanding.

Business Performance, Business Strategy, and Information System Strategic Alignment: An Empirical Study on Chinese Firms

The alignment between information systems (IS) and business strategy along with its implications for perceived IS effectiveness and business performance is an important question, which is rarely studied in China. Based on an empirical study, this paper summarized the significance of IS strategic alignment and its impact on business performance. This study also measured business strategy, information system strategy, and information system strategic alignment, built a conceptual model to describe the relationship between these factors, and investigated their implications for information system performance and business performance. A structural equation model was employed to test the conceptual model. Analyses of data gathered in a survey indicate that information system strategic alignment is a better predictor of business performance than business strategy or information system strategy alone, although business strategy can significantly influence business performance.

Interpreting IS alignment: A multiple case study in professional organizations

This paper centers on the interpretation attributed by organizational members to the information systems (IS) alignment concept. Its objective is to study IS alignment in professional organizations. Specifically, it reports on an interpretive study conducted in five Chilean organizations; four professional and one entrepreneurial, of which two are private and three are public. The theoretical background of our study is derived from three IS strategic alignment conceptualizations: managerial, emergent and critical. These concepts formed our theoretical framework that guided data collection and analysis. The study centers on the meanings organizational members assigned to IS strategic alignment, as well as their views on the barriers that hinder achieving this level of organizational integration. The analysis results are summarized in seven hermeneutic themes that point out the different connotations the organizations assigned to IS alignment. The significance of the findings are summarized in four insights that formulate theoretical and practical implications. These insights refer to: (1) the difficulties of achieving alignment for professional organizations, particularly public ones, (2) the limitations these organizations have in being agile, (3) the rationale for acquiring technology and determining IT skills, and (4) the imperative meaning that CIOs attribute to IS alignment. The paper concludes with a reflection on the limitations and relevance of the research.

Antecedents and outcomes of strategic IS alignment: an empirical investigation

Prior research argues that alignment between business and information systems (IS) strategies enhances organizational performance. However, factors affecting alignment have received relatively little empirical attention. Moreover, IS strategic alignment is assumed to facilitate the performance of all organizations, regardless of type or business strategy. By using two studies of business firms and academic institutions, this paper: 1) develops and tests a model relating alignment, its antecedents, and its consequences and 2) examines differences in these relationships across organizational types and strategies. Findings indicate that alignment depends on shared domain knowledge and prior IS success, and also support the expected positive impact of alignment on organizational performance. Differences across Prospector, Analyzer, and Defender business strategies are examined. A key research contribution is the empirical demonstration that the importance of alignment, as well as the mechanisms used to attain alignment, vary by business strategy and industry. In past alignment studies, controlling for industry has not been uncommon. The findings suggest that future research studies should also control for business strategy. The article also empirically demonstrates that past implementation success influences alignment. In addition, it highlights the influence of a process variable, strategic planning, on the development of shared knowledge and, consequently, on alignment. This paper examines strategic issues related to the management of technology. Data from multiple surveys are used to test the extent to which strategic planning, shared business-IS knowledge, prior IS success, and other variables consistently enhance IS alignment. The study also provides empirical support for the popular argument that IS alignment improves organizational performance. It extends the current literature by examining the extent to which these findings hold across firm strategies and industries. The authors argue that not all firms are equally well served by allocating scarce resources to improve IS alignment.

Strategic Information Systems Alignment in the Health Care Industry

Currently research into IS strategies and issues within the healthcare industry is severely underrepresented in the mainstream IS literature. New emphasis is being placed on research in this area because of the increased emphasis within information systems as a whole on security and the protection of personal information. This paper reviews current trends in published research on strategic IS issues within healthcare information systems organizations. The body of literature is evaluated against the lens of strategic information systems alignment with overall business goals. This evaluation has shown that there is little published about aligning information systems with business goals in the healthcare industry. Opportunities for ongoing research are identified.

Strategic Alignment and Enterprise Systems Implementation: The Case of Metalco

This paper explores the issue of strategic alignment and enterprise systems (ES) implementation from the point of view of one organization involved in deploying an enterprise resource planning system globally. Two questions motivated this research. First, given that strategic information systems (IS) alignment is viewed as essential to organizational success in deriving value from information technology (IT) investments, what is the experience of organizations in practice in aligning their IT strategies with their business strategies? Second, what is the impact of global ES deployments on strategic IS alignment? Based on an in-depth case study of one organization's experience, the research shows that achieving alignment is still important yet difficult to attain. The pressure for alignment may be even more intense with the deployment of global enterprise-wide systems. The study provides additional empirical support for the strategic IS alignment construct and goes further to suggest that deploying an ES does not by itself create integrated and seamless operating environments. In addition, such an outcome requires significant organizational change at all levels.

Detours in the Path toward Strategic Information Systems Alignment

In studying strategic information systems (IS) alignment, it is important to examine the associated processes over time rather than viewing alignment as an isolated event. This article focuses on how organizations undergo a series of interdependent changes in business strategy and IS strategy in order to increase the alignment between them. Based primarily on detailed case studies of changes over long time-periods in three organizations, the research suggests that this process of adaptation and change, which allows alignment to occur, is more complex than previously believed. While efforts to achieve alignment between IS and the business do sometimes produce alignment, they often go astray. There are three such potentially problematic trajectories—excessive transformation, paradoxical decisions, and uncertain turnarounds. This article identifies some factors explaining why organizations might pursue these problematic trajectories and offers some suggestions for avoiding them.

Business Strategic Orientation, Information Systems Strategic Orientation, and Strategic Alignment

Information systems strategic alignment—the fit between business strategic orientation and information systems (IS) strategic orientation—is an important concept. This study measured business strategic orientation, IS strategic orientation, and IS strategic alignment, and investigated their implications for perceived IS effectiveness and business performance. Analyses of data gathered in a mail survey of North American financial services and manufacturing firms indicated that 1) business strategic orientation, IS strategic orientation, and IS strategic alignment are modeled best by utilizing holistic, ‘systems’ approaches instead of dimension-specific, ‘bivariate’ approaches, 2) three generic IS strategic orientations can be detected, 3) user information satisfaction does not capture important strategic aspects of IS effectiveness, 4) IS strategic alignment is a better predictor of IS effectiveness than is strategic orientation, and 5) business strategic orientation, IS strategic alignment, and IS effectiveness have positive impacts on business performance.