Information Technology Strategic Alignment Research Articles

Information Technology Skills and Firm Performance of Kenya Tea Producers Companies

The study sought to examine the influence of information technology skills on performance of Tea Producers companies in Kenya. The study reviewed theoretical and empirical literature relevant to the role of Information Technology skills on performance of Tea Producers companies in Kenya. The conceptual framework was discussed to show the relationship between Information Technology skills and firm performance (dependent variable). Positivism philosophy guided this study. Positivism philosophy emphasizes the importance of empirical evidence and scientific methods in understanding the world and acquiring knowledge. The study used cross-sectional survey design to establish the role of Information Technology strategic alignment on performance of Tea Producers companies in Kenya. In this study, the target population was identified as tea producer companies that are members of the East Africa Tea Trade Association (EATTA) in Kenya. This choice was made on the premise that these entities are likely to possess pertinent and accurate information relevant to the research. Specifically, the population encompassed all 29 tea producer members of EATTA. Respondents’ population comprised of six top managers from each organization translating to 174 top managers. The sample size was 121 top managers. They were targeted because top managers of organizations mostly handle strategic management issues. The research employed purposive sampling to select respondents and primarily relied on gathering primary data. A questionnaire with a diverse set of questions was utilized to collect responses from participants. Prior to the main study, a pilot study was conducted to ensure the validity and reliability of the questionnaire. The findings of the study indicate that information technology skills exert a positive and statistically significant influence on the performance of tea producer companies in Kenya. Findings revealed that cross-training, encouraging innovation and providing employment opportunities influences performance of Tea Producers companies in Kenya. This implies that a unit improvement in information technology skills would lead to improvement in performance of Tea Producers companies in Kenya. Based on the findings, this study recommends that the management of tea Producer companies should formulate and implement effect employee training programs to improve their IT skills.

Technology Communication and Firm Performance of Kenya Tea Producers Companies

The study sought to examine the role of Technology Communication on performance of Tea Producers companies in Kenya. The study reviewed theoretical and empirical literature relevant to the role of Technology Communication on performance of Tea Producers companies in Kenya. The conceptual framework was discussed to show the relationship between Technology Communication (independent variable) and firm performance (dependent variable). Positivism philosophy guided this study. The study used cross-sectional survey design to establish the role of Information Technology strategic alignment on performance of Tea Producers companies in Kenya. In this study, the target population was identified as tea producer companies that are members of the East Africa Tea Trade Association (EATTA) in Kenya. This choice was made on the premise that these entities are likely to possess pertinent and accurate information relevant to the research. Specifically, the population encompassed all 29 tea producer members of EATTA. Respondents’ population comprised of six top managers from each organization translating to 174 top managers. The sample size was 121 top managers. They were targeted because top managers of organizations mostly handle strategic management issues. Purposive sampling technique was used to select respondents. The study mainly relied on primary data. The study used a questionnaire with diverse set of questions for the respondent to answer. A pilot study was carried out in order to ascertain the validity and reliability of the questionnaire. Descriptive statistics in the form of means and standard deviations were computed on the Technology Communication and performance measurement scales to provide an initial outline of the distribution of the participants' responses. The study concluded that Technology Communication has a positive and statistically significant influence on performance of Tea Producers companies in Kenya. Based on the findings,this study recommends that the management of Tea Producer companies should ensure effectiveness in adopting information technology and using it in governance of their organization. In addition,the management of Tea Producer companies should ensure their employees are well equipped with information technology skills to improve their productivity.

THEORETICAL FRAMEWORKS SUPPORTING IT AND BUSINESS STRATEGY ALIGNMENT FOR SUSTAINED COMPETITIVE ADVANTAGE

In today's dynamic business environment, the alignment between information technology (IT) and business strategy is critical for organizations seeking sustained competitive advantage. This paper presents a comprehensive examination of theoretical frameworks supporting this alignment, aiming to provide insights into how organizations can effectively integrate IT capabilities with strategic objectives. The theoretical foundations explored include the Resource-Based View (RBV), which emphasizes leveraging unique resources and capabilities to achieve competitive advantage. Additionally, the Dynamic Capabilities Framework underscores the importance of an organization's ability to adapt and innovate in response to changing market conditions, highlighting the role of IT in facilitating agility and flexibility. The Strategic Alignment Model offers a structured approach to ensuring coherence between business strategy, IT strategy, and organizational infrastructure, enabling seamless integration and alignment. Value Chain Analysis provides a framework for understanding how IT can add value across different stages of the value chain, informing strategic decision-making and resource allocation. Moreover, IT Governance Frameworks, such as COBIT and ITIL, offer guidelines for effective management and governance of IT resources to support strategic objectives. Business Process Reengineering (BPR) is also examined as a methodology for redesigning business processes to align with strategic goals and leverage IT capabilities. Through an exploration of these theoretical frameworks, this paper aims to equip organizations with the knowledge and tools necessary to achieve sustained competitive advantage through the strategic alignment of IT and business strategies. Keywords: Theoretical Frameworks, IT, Business Strategy Alignment, Sustained Competitive Advantage.

Strategic alignment maturity assessment on conventional bank’s information technology

Strategic alignment between information technology and business strategy is needed to achieve an organization's performance excellence. Bank X is a bank that focused on serving the micro, small and medium enterprise (MSME) market segments. Bank X provided a variety of banking services which are generally grouped into activities of raising and distributing funds. Banking services are carried out conventionally. At the end of 2019, Bank X was acquired by an investment holding company. The objective of the acquisition is to develop Bank X into a bank with a digital platform. This study aims to measure the maturity level of strategic alignment of information technology with business strategies at Bank X. A conceptual framework is developed based on relevant literature. The level of strategic alignment is measured based on Luftman's Strategic Alignment Maturity Model (SAMM) framework. The results of the analysis show that the strategic alignment maturity level of Bank X is at level 3. Several recommendations are given to improve the maturity level of Bank X's strategic alignment.

Enhanced digital transformation supporting capabilities through enterprise architecture management: A fsQCA perspective

The rapid development of novel, innovative digital technologies significantly impact organizations and their business ecosystem. Organizations must stay abreast of the latest developments and respond to them continuously to remain competitive. Many organizations make significant investments in enterprise architecture management (EAM) to manage the transformation of their complex information technology (IT) and information systems (IS) landscape and to guide their digital transformation. However, empirical research on EAM benefit realization is limited. This research conceptualized EAM as a particular type of dynamic managerial capability. Survey data (N = 110) was used in a set-theoretic approach (fsQCA) to identify EAM configurations that lead to a presence of technical IT capabilities and strategic IT alignment. The results indicate the importance of system changes induced by the EAM function itself to improve technical IT capabilities. Furthermore, setting up clear standards and rules, and developing and planning the migration to target architectures is particularly important to align business and IT in larger organizations. This research contributes to the academic knowledge base on EAM benefit realization and supports the needed reconceptualization and evolution of EA and EAM to better support organizations' digital transformations. Furthermore, the outcomes can help decision-makers justify and guide their EA investments while implementing a digital strategy.

The impact of IT resources and strategic alignment on organizational performance: The moderating role of environmental uncertainty

Today, organizations make significant investments in information technology (IT) as a strategic resource to achieve their goals. If these investments are managed properly, they can create value for the organization. However, companies face problems in evaluating IT investment plans to gain value from them and improve organizational performance, which can be attributed to different reasons such as environmental uncertainty. Therefore, this study used a resource-based view and evaluated the impact of IT investment, IT management as two important IT resources, and strategic alignment on organizational performance by considering the moderating role of environmental uncertainty as one of the most important challenges of companies in IT usage. The quantitative approach was used and the required data was gathered using two questionnaires (one for IT managers and one for executives). The questionnaires were collected randomly from 70 IT managers, and 70 CIOs, and CEOs of small and medium-sized IT organizations (SMEs). Then data was analyzed using Structural Equation Modeling through using PLS software. Based on the results, strategic alignment and IT management are effective on organizational performance. Besides, environmental uncertainty moderated these relationships. The results of the study will help managers to nurture IT resources in their company to develop their strategies based on their perceived level of environmental uncertainty.

Project Portfolio Management and Information Technology Strategic Alignment

This study analyzes the relationship between Project Portfolio Management (PPM) and the Information Technology (IT) strategic alignment in conjunction with the intensity of technology usage. The methodological approach was a survey-based research, using structural equation modeling based on a field study involving 158 responses. The results indicate PPM has a positive relationship with IT strategic alignment and the intensity of technology usage in the organization does not affect this relationship. It is an original practical and theoretical finding that adds to the PPM studies an important perspective to be considered in the organizations and new research.

Why and how informatics and applied computing can still create structural changes and competitive advantage

Purpose In the new digital age, enterprises are facing an increasing global competition. In this paper, we first examine how Information Technology (IT) can play an important role in giving significant competitive advantage in the modern enterprises. The business value of IT is examined, as well as the limitations and the trade-offs that its applicability faces. Next, we present the basic principles for a successful IT strategy, considering the development of a long-term IT renovation plan, the strategic alignment of IT with the business strategy, and the adoption of an integrated, distributed, and interoperable IT platform. Finally, we examine how a highly functional and efficient IT organization can be developed. Design/methodology/approach Our methodological approach was based to the answers of the following questions: 1. Does IT still matter? 2. What is the business value created by IT along with the corresponding limitations and trade-offs? 3. How could a successful IT Strategy be build up? 4. How could an effective? T planning aligned with the business strategy be build up? 5. How could a homogenized and distributed corporate IT platform be developed? and finally, 6. How could a high-performance IT-enabled enterprise be build up? Findings The enterprises in order to succeed in the new digital area need to: 1. synchronize their IT strategy with their business strategy, 2. formulate a long-term IT strategy, 3. adopt IT systems and solutions that are implemented with elasticity, interoperability, distribution, and service-orientation. 4. keep a strategic direction towards the creation of an exceptional organization based on IT. Originality/value This paper is original with respect to the integrated approach the overall problem is examined. There is a prototype combined investigation of all perspectives for an effective enforcement of IT in a way that causes acceleration in competitive advantage when conducting business.

The Impact of National Culture on Strategic IT Alignment: A Multiple-case Study of Subsidiaries of Multinational Corporations

ABSTRACT Through a multiple-case study of three subsidiaries of multinational corporations (MNCs), we examined the impact of national culture on strategic information technology (IT) alignment. We found that the headquarters and subsidiary host national cultures affect alignment indirectly, through variables in the organizational context, including intercultural communications, IT governance, management style, differences in work values and practices, and cultural conflict and mistrust. Based on the findings, we propose a model of national culture and alignment.

Information technology governance model for a low resource institution with fragmented IT portfolio

The emergence of information technology governance in higher education has emerged as important for aligning information technology goals with that of institutions in order to achieve the mission and vision of institutions. Even though higher education institutions in South Africa have some form of information technology governance or information technology strategic committee in place, they are still struggling to operationalize their mandate effectively in order to achieve their objectives. The struggle is even more in settings that are low on resources and where the information technology portfolio is highly fragmented. In this article, an information technology governance model suitable for low resource settings and fragmented information technology portfolios is proposed to assist institutions having this type of setting achieve successful strategic information technology alignment. Case study research was used to: 1) understand information technology challenges that an institution with this type of setting faces and; 2) understand how other similar institutions have implemented their information technolgy governance. The findings from the case studies contributed to the development of an effective information technology governance model suited to these institutions with low resource settings and having fragmented information technology portifolios. Initial evaluation of the model using existing literature review, existing information technology governance frameworks and case studies used in the study indicate the validity of the model.

Strategic Alignment of Information Technology in Public and Private Organizations in India: A Comparative Study

Strategic alignment of information technology (IT) is required to be included in the firms’ core activity in today’s business environment. The purpose of this study is to understand the impact of ‘IT connectivity, IT infrastructure and IT human resources’ on ‘IT business strategic alignment’ by developing a model, in public and private organizations in India. A questionnaire was used to measure the constructs after its validity and reliability. The findings discovered that firms’ IT strategic alignment was significantly impacted by three IT dimensions, that is, IT connectivity, IT infrastructure and IT human resources (combined as IT capability). The IT investments and expenditures of a firm are aligned with its business objectives and priorities. Furthermore, the significant role of these dimensions in public and private organizations in India was examined.

Maturity of Strategic Alignment of Business and IT in IT Education and Consultation Institutions

The strategic alignment of business and Information Technology (IT) is an important element for an organization so that the organization can realize the benefits of information technology for the business they run. Technological advances, especially in the Industrial Revolution 4.0 era, made all organizations that wanted to win the competition not only implement technology in their business processes, but also had to align the use of information technology with non-IT units in the organization. The impact of the Industrial Revolution was felt in all fields, including education. In the midst of a lot of research on measuring the level of strategic alignment at higher education institutions, this research focuses on measuring the level of strategic alignment that has been carried out by institutions other than tertiary education, namely the IT Education and Consultation Institute in Yogyakarta. The model used in this alignment measurement is the Strategic Alignment Maturity Model (SAMM). From this research it is known that the IT Education and Consultation Institute which actively provides consulting and education services specifically in the IT field, understands the importance of Strategic Alignment in Business and IT and applies them in carrying out its business activities. However, despite implementing IT best practices as what has been taught to its customers, this institution needs to realize and improve the areas of IT human resources, business communication and IT, and measuring the value of benefits and IT competence.

Discrepancies in information technology strategic alignment in healthcare

Information technology contributes significantly to the healthcare industry. Healthcare IT, if efficiently managed, can decrease expenses; enhance hospitals processes, patient satisfaction and care. From this perception, the necessity to improve information systems management becomes a significant governance and structural concern in hospitals. Therefore, it is fundamental to set an appropriate IT strategy, provide means to manage and implement it. IT strategic alignment is crucial to developing and maintaining all kind of information and communication that supports patients' treatment processes, business operations and ameliorates organisational social and economic performances. This study is a kind of action research project, and more specifically a qualimetrics intervention research methodology, a transformative approach, conducted in a private hospital in Lebanon. As technical systems are turning out to be more complex and indispensable to healthcare organisations, there is a rising awareness to preserve a sustainable environment, through maintaining intellectual, social and operational strategy of the organisation.

Discrepancies in information technology strategic alignment in healthcare

Information technology contributes significantly to the healthcare industry. Healthcare IT, if efficiently managed, can decrease expenses; enhance hospitals processes, patient satisfaction and care. From this perception, the necessity to improve information systems management becomes a significant governance and structural concern in hospitals. Therefore, it is fundamental to set an appropriate IT strategy, provide means to manage and implement it. IT strategic alignment is crucial to developing and maintaining all kind of information and communication that supports patients' treatment processes, business operations and ameliorates organisational social and economic performances. This study is a kind of action research project, and more specifically a qualimetrics intervention research methodology, a transformative approach, conducted in a private hospital in Lebanon. As technical systems are turning out to be more complex and indispensable to healthcare organisations, there is a rising awareness to preserve a sustainable environment, through maintaining intellectual, social and operational strategy of the organisation.

How Does Strategic Alignment Affect Firm Performance? The Roles of Information Technology Investment and Environmental Uncertainty

The alignment between a firm’s business and information technology (IT) strategies continues to be important for research and practice. Prior research investigating the performance consequences of strategic IT alignment (SITA) has produced inconsistent results. This paper distinguishes between two roles of SITA: (1) as a state of congruence between business and IT, which is the primary focus of empirical studies, and (2) as reflecting a capability that may enable or inhibit the leveraging of IT investments, as has been discussed theoretically but not examined empirically. Based on the resource-based view (RBV), IT investment (ITI) is explicitly included as the resource that SITA as a capability can inherently help leverage. Also based on RBV, we argue that environmental uncertainty, which is examined in terms of dynamism, complexity, and munificence, moderates the effect of SITA on the relationship between ITI and firm performance. The research model is tested through panel-data analyses of data from 1999–2008, including 758 firm-year observations from 242 firms. This study is the first to find that SITA as a state directly improves firm performance even when considering ITI and its interaction with SITA. Moreover, the effect of the interaction between SITA and ITI on firm performance increases with an increase in environmental dynamism or complexity and with a decrease in environmental munificence. We also find that the effect of the interaction between SITA and ITI can be negative under some environments. Specifically, the results suggest that (1) in dynamic, complex, and hostile environments, SITA does reflect a capability that enhances the positive effect of ITI on firm performance, but (2) in stable, simple, and munificent environments, SITA reflects a rigidity that reduces the positive effect of ITI on firm performance. The results are robust under a variety of statistical specifications and estimations.

Maximizing IT Investment Returns: Strategic Alignment of Information Technology towards Corporate Performances

Information technology (IT) investment and aligning methodologies require thorough understanding of analyses on different parallel present values and strong internal rates of return. E-commerce has given a new dimension to IT investing that elevates the role of strong IT performance as a driver of corporate strategy. Stakeholders concerned with maximizing IT return on investment (ROI) recognize the importance of central, comprehensive information resources to effective strategic business planning. Alignment of corporate and IT strategies is now a vital element of business success. To empirically support this conclusion, this study measures the relationship between strategic alignment of IT investment returns and corporate performance. A Descriptive research design using survey methodology was employed. The study included analyses of variable values involving stakeholders in banks, such as new customers and employees. A Simple Percentage Method, chi-square tests, Tables and weighted average were used to analyze data of at least five (5) banks in Ajman Emirates of UAE to determine the degree of alignment and its impact on the two strategic dimensions. A binary logistic regression analysis using Chan’s STROIS model incorporated with Venkatraman’s STROBE model was proposed to collect survey data and determine the extent of the strategic alignment. The research results provide empirical evidence that supports the hypothesis that closer alignment between corporate and IT strategies leads to increased IT ROI and improved corporate performance. This relationship holds true for all firms regardless of strategic intent for IT. The study also shows a positive correlation between early adoption of newly emergent technologies and business competitive advantage which leads to positive conclusions that strategic competition is imperative towards corporate performances.

An empirical study of the role of IT flexibility and IT capability in IT-business strategic alignment

PurposeThe purpose of this study is to contribute to the current discussion on strategic alignment of information technology and business (strategic alignment) by developing a model for conceptualizing how strategic alignment can be enabled through of IT flexibility and IT capability.Design/methodology/approachA questionnaire instrument was created to measure the constructs and it was assessed in a pretest and two pilot-tests. The main data set was collected from IT managers (or similar titles) of medium- and large-sized firms.FindingsStrategic alignment seems to be moving closer to firms’ core activity in today’s business environment. The findings revealed that strategic alignment was significantly affected by four dimensions of IT flexibility and IT capability. Furthermore, the significant role of two dimensions of IT flexibility in IT capability was supported.Research limitations/implicationsSingle key informants were used for data collection that could be a potential limitation.Practical implicationsIt seems likely that firms will benefit from the results to manage and control their scarce IT resources more effectively for aligning IT with business strategies, goals and needs.Originality/valueStrategic alignment has become a more complex and unstructured phenomenon and many firms are still considering how to reconcile to it. Furthermore, the lack of empirical examination of IT flexibility and IT capability in relation to strategic alignment from important perspectives, and the lack of research of the dimensions of IT flexibility for supporting IT capability, determines the purpose of this study.

Strategic IT Alignment: Twenty-Five Years on

All research streams can trace their lineage to an initial paper or series of papers. The information systems (IS) field – despite its relative youthfulness – can point to examples of seminal research by Davis (1989) on technology acceptance or Brynjolfsson and Hitt (1996) on information technology (IT) payoffs as the foundation of whole new areas of research. After almost a quarter century and 3200 citations (as of October 2014), many researchers would also include work by Henderson and Venkatraman (1993) – first published in the IBM Systems Journal under the heading, ‘Strategic Alignment: Leveraging Information Technology for Transforming Organizations’ – on the list of seminal and transformative IS publications.

Aligning Business and IT Strategies in Multi-business Organizations

The alignment of business and information technology (IT) strategies is an important and enduring theoretical challenge for the information systems discipline, remaining a top issue in practice over the past 20 years. Multi-business organizations (MBOs) present a particular alignment challenge because business strategies are developed at the corporate level, within individual strategic business units and across the corporate investment cycle. In contrast, the extant literature implicitly assumes that IT strategy is aligned with a single business strategy at a single point in time. This paper draws on resource-based theory and path dependence to model functional, structural, and temporal IT strategic alignment in MBOs. Drawing on Makadok's theory of profit, we show how each form of alignment creates value through the three strategic drivers of competence, governance, and flexibility, respectively. We illustrate the model with examples from a case study on the Commonwealth Bank of Australia. We also explore the model's implications for existing IT alignment models, providing alternative theoretical explanations for how IT alignment creates value.

Information technology and open innovation: A strategic alignment perspective

Advances in information technology (IT) have enabled firms to increasingly rely on open innovation. Although researchers and practitioners are interested in this phenomenon, there is a lack of theoretically driven research on how IT impacts organizational open innovation performance. Drawing on the strategic IT alignment perspective and related literature, we proposed a model to explain the performance of organizational open innovation; i.e., the alignment between IT strategies and the openness of open innovation strategies results in different outcomes for open innovation. Through the analysis of data from 225 firms in China, we found that the alignment between IT flexibility and breadth enhances innovation radicalness and innovation volume, whereas the alignment between IT integration and depth positively affects innovation volume only. Innovation volume and radicalness were found to enhance organizational performance in terms of sales growth. Our study contributes to the literature on open innovation and strategic alignment. Its findings also have important managerial implications for practitioners.