Assessing the Impact of IT Connectivity and IT Capability on IT-Business Strategic Alignment: An Empirical Study

Abstract

AabstractThe literature argues that organizations cannot be competitive if their business and information technology strategies are not aligned. Yet achieving strategic alignment continues to be a main concern for business executives. So this research seeks to address the research problem of the lack of alignment between IT strategy and business strategy. Past studies have shown that flexibility in IT is an influential aspect of sustaining strategic alignment in today's environment while researches on dimensions of IT flexibility regarding strategic alignment are limited. One of the most important dimensions of IT flexibility is connectivity which the research has considered this dimension. Further, the researchers have found that IT capability in regard to strategic alignment and IT connectivity has been ignored in the prior studies. Thus, this research for filling this gap proposed and empirically assessed the relationships among IT connectivity, IT capability, and strategic alignment. Data for this study were collected through questionnaires filled up by IT managers of organizations in United Arab Emirates. The findings indicated IT connectivity and IT capability have a significant positive effect on strategic alignment and IT connectivity has also a positive impact on IT capability.

The Role of Innovative Climate in the Relationship between Sustainable IT Capability and Firm Performance

“…It is assumed that a firm's IT capability is crucial for its competitive advantage [2]. Accordingly, IT is widely focused in organizations based on its potential to provide extended advantages in competitive settings [56].…”

“…In this vein, Stoel and Muhanna [61] claim that IT capabilities are complex bundles of IT-related resources, skills, and knowledge, put into practice by organizational processes, which enable firms to coordinate their activities and utilize IT assets to achieve desired outcomes. IT studies have underlined that IT capacity enables an organization to achieve a competitive advantage over its competitors and improves functionality of the organization [56].…”

“…IT infrastructure is composed of such IT elements that are inter-connected and managed by IT specialists with an aim of providing a set of standard services to the organization [34]. IT infrastructure is defined as the extent to which applications and data are able to be shared via communication networks and retrieved for the use of organization [56]. The IT infrastructure is described as a shared information delivery base, the business functionality of which has been defined in terms of its reach and range.…”

A Simulation Model for Risk Management Support in IT Outsourcing

“…In his review of the literature on IT capabilities, Jorfi (2011) points to a positive relationship between IT capabilities and corporate strategic alignment. Martens and Teuteberg (2009) review 97 articles focused on ITO risk management.…”