Six types of IT-business strategic alignment: an investigation of the constructs and their measurement

The trickle-down effect of big data use to predict organization innovation: the roles of business strategy alignment and information sharing

Purpose

In this age of digitalization, organizations are generating large data from the organizations' manufacturing processes that are valuable for capturing a competitive edge. Chinese small and medium enterprises (SMEs) can bring organizations radical innovation by investing in innovation projects (i.e. big data use; BDU) using the SMEs' scarce resources. Thus, the authors' research aims to predict Chinese SMEs' radical innovation (RI) through BDU using the theoretical lenses of the resource-based view. Moreover, the authors' study also pursues to realize the undermining mediating process of business strategy alignment (BSA) and the buffering role of information sharing in BDU–RI linkage.

Design/methodology/approach

In total, 297 Chinese SMEs entrepreneurs and managers were recruited from the Yangtze River Economic Belt, China using a survey approach. In Mplus 7.4, the authors tested the proposed hypotheses.

Findings

The sample of 297 shows that BDU is directly and indirectly (via BSA) related to RI. Further, information sharing moderates the linkage between BDU and BSA and BSA and RI. The association between BSA and RI is only significant and stronger when information sharing is high.

Practical implications

This research is beneficial for SME entrepreneurs/managers to enhance the understanding of BDU, eliminate challenges of BSA via BDU and align business strategies to bring RI to Chinese SMEs.

Originality/value

SMEs always search for new ways to enhance SMEs' productivity using scarce resources. This is the first research that advances big data and innovation literature by predicting firm RI through BDU using a resource-based view. Moreover, this study is novel because the study investigates the mediation role of BSA and the moderating role of information sharing in the linkage between BDU and firm RI in Chinese SMEs.

Causal Interactions in Agile Application Development

The Agile approach and tools are popular for the management of Enterprise Application Software (EAS) development. This article focuses on the issue of inconsistency between strategic business objectives and the functionality of the software developed. Agile management tools lack the functionality of EAS project activities coordination. This article aims to rethink Agile project management using the causal modelling approach. A causal model of Agile project management using a management transaction (MT) concept was developed. The notion of the space of processes was used to identify the MTs location along the axes of aggregation, generalization, and time and to formalize their interaction specifications. Taxonomy of the coordination meta-types and types was developed using the identifiers of the MTs. The modified Agile activities hierarchy was developed, and vertical and horizontal causal interactions between Agile activities were identified. This modified Agile management model helps to consistently track the integrity of EAS project content. Complexity indicators were introduced to evaluate the EAS project complexity and their average and normalized values are presented. Additional attributes in the Agile management tool Jira are proposed. Monitoring mismatch between strategic business objectives and development activities content helps to improve the success of EAS projects delivery.

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

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.

Towards Renewed Business-IT Alignment Models in Digital Era

The long-standing debates over business-information technology (IT) alignment – fit, match or congruence between a firm’s strategy, organizational issues and IT challenges – are not closed among both professionals and academics. This paper, based on a state of art (theoretical and conceptual), analyses how digital transformation could affect the business (strategic)-IT alignment. It aims at providing a renewed framework of business-IT alignment in order to address the potential gaps between existing models and the current concern and future challenges of the digital transformation, in connection with new technologies particularly the development of data. It presents a first attempt to include data issues in business-IT alignment model.

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.

Aligning Information Technology and Business: The Differential Effects of Alignment During Investment Planning, Delivery, and Change

Digital transformations often require firms to align and synchronize their information technology (IT) and business initiatives. In this context, one important question that managers face is where they should focus most when aligning IT and business for leveraging IT investment for firm performance. Authors argue that firms that focus on IT–business alignment at the later stages (i.e., IT delivery and IT change) are better able to translate their IT investment into revenue than firms that focus on IT–business alignment at the early stage (i.e., IT investment planning) of the IT lifecycle. They use archival data from more than 120 firms in India and find that the positive relationship between IT investment and firm revenue is stronger for firms that focus on IT delivery–business alignment or IT change–business alignment than for firms that focus on IT investment planning–business alignment. In addition, they find that at higher levels of IT investment, firms that focus on IT change–business alignment or IT delivery–business alignment have higher revenue than firms that focus on IT investment planning–business alignment, whereas at low levels of IT investment, firms that focus on IT investment planning–business alignment outperform firms that focus on IT delivery–business alignment or IT change–business alignment. Taken together, these findings can help managers to improve the success of their digital transformation efforts by tailoring their alignment efforts across planning, delivery, and change stages.

Environmental Turbulence as a Moderator on the Impact of Transformational Leadership and IT Business Strategy Alignment on EIS Adaptation

This article expands current knowledge by assessing how transformational leadership influences IT business strategy alignment. Unexplored in earlier studies, the article discloses the role that environmental turbulence plays in this association. Developed through an extensive literature survey, the conceptual model is empirically tested, with survey data collected from managerial employees. The results show that, first, the transformation leadership style can lead to a favorable IT business strategy alignment. Second, the IT business strategy alignment has a significant positive effect on EIS adaptation. Third, environment turbulence positively moderates the relations among IT business strategy alignment and EIS adaptation. This study not only extends the current knowledge, but also provides useful managerial implications for the banking sector organizations of Pakistan.

Exploring the relationships between dynamic capabilities and IT governance

Purpose

Information technology (IT) constitutes an important driver for innovation in the public sector. However, taking advantage of IT to innovate requires the existence of other organizational and institutional capabilities within the public organization. Using absorptive capability theory, the purpose of this study is to explore the relationship between principles for IT governance and dynamic capabilities across semi-urban (between 10,000 and 149,000 inhabitants), urban (between 150,000 and 600,000 inhabitants) and metropolitan (more than 600,000 inhabitants ) municipal governments in Mexico.

Design/methodology/approach

This study reports on three workshops involving 34 chief information officers (CIOs) from semi-urban, urban and metropolitan municipalities. The workshop agenda included a series of brainstorming exercises to discuss – among other topics – the capabilities required for digital government innovation. The capabilities collected during the workshops were codified by the authors based on their relationship to the six IT governance standardized principles and the four dynamic capabilities identified in the literature. The authors used descriptive and correlation analyses to show the importance of governance principles and dynamic capabilities for innovation, as well as the relationships between those two dimensions, in each type of municipality.

Findings

This study shows that specific IT governance principles may enhance innovation capabilities linked with knowledge acquisition, assimilation, transformation and exploitation. Moreover, the ways in which IT governance principles support innovation are linked to size, resources and complexity of the local government. In conclusion, this study discusses the primary IT policy implications to improve possibilities to innovate in the public sector.

Originality/value

Although researchers and practitioners agree that following principles of good governance may enhance performance and innovation in the provision of public services, the link between the principles of IT governance and capabilities to spur innovation has not yet been fully established in the literature. Thus, in this study, empirical evidence of this linkage is provided.

Organizational culture and information systems strategic alignment

Purpose

Information 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/approach

Empirical 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.

Findings

The 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/value

Despite 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.

The Co-Evolution of IT, Knowledge, and Agility in Micro and Small Enterprises

Small firms facing today’s turbulent business environment often fail early in their life if they do not develop the necessary capabilities to survive. The main goal of this study is to investigate how IT and knowledge co-evolve, influencing a firm’s agility, within the context of micro and small enterprises (MSEs). Applying the resource-based view of the firm and dynamic capabilities, a multiple case study of eight firms was used to explore links among business, IT and knowledge strategies, resources, and capabilities. Links among IT and knowledge capabilities and firm agility were also explored. The results demonstrate that an MSE’s business strategy shapes, and is also shaped by, the firm’s IT and knowledge strategies; and that both IT and knowledge capabilities shape, and are shaped by, the firm’s agility, coevolving with it. By highlighting the important antecedents of small firm agility and presenting crucial links among agility, IT capabilities, and knowledge capabilities in MSEs, we encourage practitioners to think carefully about their IT and knowledge strategies and to rethink their use of firm resources and capabilities to develop agility in the face of environmental uncertainty and change.

Establishing a partnership between top and IT managers

Purpose

A poor relationship between top management and IT personnel is often denoted as a business–IT gap. In an era of digital transformation, bridging this gap and establishing a strong relationship between business and IT are more important than ever before. The purpose of this paper is thus to examine a particular link between business and IT managers – a partnership relationship – together with the factors facilitating it.

Design/methodology/approach

A partnership construct is developed based on interdisciplinary studies and transferred to the business–IT context since it is not generally used in IT disciplines. The model was empirically tested with structural equation modelling using data obtained from 221 IT managers in Slovenian companies.

Findings

The results show that both the perceived value of IT and the business orientation of the IT department exert a positive influence on the partnership, while a mere technology-oriented IT department has a negative effect on the partnership relationship. Furthermore, the paper also presents the prerequisites for a business-oriented IT department.

Originality/value

In this digitalisation era, IT is becoming even more important for its strategic role in organisations. There is thus a strong need to bridge the business–IT gap. Despite significant efforts made to close this gap, it remains a major issue. This research contributes to understanding the business–IT gap and presents the key factors for ensuring a partnership relationship is in place. The study also combines the views of social exchange theory and knowledge-based theory and upgrades findings concerning the influence of social facilitators on collaboration outcomes.

Business-IT Alignment Literature Review

The purpose of this article is to portray the knowledge evolution paths of business-IT alignment (BITA) research and identify a set of important papers in the development of BITA, and elucidate the intellectual structure of this field. This study collected 309 papers published during the period 1983-2015 from the Web of Science (WOS) database. Using a variety of bibliometric and visualization analytic techniques such as citation analysis, co-citation analysis and main path analysis, this article (1) delineates the significant knowledge flows of BITA research and identifies 15 important papers in this field; (2) graphically maps the influential countries, institutions, and journals of BITA research; (3) identifies four major research themes: BITA model, measurement, antecedents, and dynamics, and visualizing the relationships among them. Based on these findings, recommendations for the future research directions have suggested. This article provides IT practitioners, executives, and scholars with a new perspective to get a better understanding of BITA.

THE ROLE OF MARKETING-ENABLED DATA ANALYTICS CAPABILITY AND ORGANISATIONAL AGILITY FOR INNOVATION: EMPIRICAL EVIDENCE FROM GERMAN FIRMS

Recent shifts in technology have created a data-rich environment and made it necessary for firms to develop new capabilities to cope with these changes. To address this challenge, this study introduces marketing-enabled data analytics capability, a specific type of information technology (IT) capability that enables firms to better understand customer needs and achieve a competitive advantage in the digital era. Using empirical results collected via online survey, we argue that marketing-enabled data analytics capability, which comprises data analytics infrastructure, marketing-oriented analytics expertise, and IT–marketing social capital, positively influences a firm’s organisational agility and innovation success. Moreover, the results show that organisational agility partially mediates the relationship between marketing-enabled data analytics capability and innovation success. By developing the construct of marketing-enabled data analytics capability, this paper lays a foundation for future research on this new type of IT capability, which is critical in the digitization process.