Antecedents and outcomes of strategic IS alignment: an empirical investigation

Abstract

Abstract-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. Index Terms-Academic institutions, antecedents of alignment, business strategy, information systems strategy, organizational characteristics, organizational performance, strategic alignment.

IT Alignment: What Have We Learned?

“…In addition, the existence of clear business plans influenced both short-term and long-term alignments. In another study, Chan et al (2006) examined antecedents to alignment directly under the control of IT management (such as shared domain knowledge, planning sophistication, and the credibility of the IT group due to prior IT success), and factors external to the IT group such as organizational size and environmental uncertainty. In earlier research, Brown and Magill (1994) identified antecedents such as corporate vision, strategic IT role, satisfaction with management of technology, satisfaction with the use of technology, and the locus of control for system approvals.…”

“…Lederer and Mendelow (1989) found that coordination of the IT plan and the business plan were achieved in three dimensions (Shank et al, 1973): plan content, timing, and personnel. Chan et al (2006) found that planning sophistication or comprehensiveness led to an increase in shared knowledge, which in turn affected alignment. The more sophisticated the planning process, the greater the likelihood of involvement of personnel from different areas of expertise.…”

Aligning Software Configuration with Business and IT Context

“…CFMs can be used as a sophisticated planning tool that increases shared domain knowledge [4]. However, they do not replace the role of designers.…”

“…In case such set is inconsistent (e.g. a same technical context appears with ranges [0,2] and [3,4]), manual analysis is required. Each core set of technical contexts defines the minimal requirements for an IT infrastructure supporting business context BC.…”

“…In their empirical study, Chan et al [4] provide valuable insights about the relationship between planning (among which, information systems configuration), and B/I alignment. In particular, their field study evidences that planning sophistication does not directly improve B/I alignment, while it improves shared domain knowledge.…”