How does business-IT strategic alignment dimension impact on organizational performance measures

Strategic perspectives, creativity, and financial performance in Vietnamese SMEs

This study examines the relationships between the inside-out and outside-in perspectives of strategists, organizational creativity, and financial performance in Vietnamese small and medium enterprises (SMEs). Based on the resource-based view and dynamic capabilities view, we collected cross-sectional data from 382 managers at all levels of Vietnamese SMEs. The study employed partial least squares structural equation modeling. The findings confirm that the inside-out perspective positively affects organizational creativity but has a negative impact on financial performance. Conversely, the outside-in perspective positively affects both organizational creativity and financial performance. Additionally, the study reveals that organizational creativity positively affects financial performance and acts as a mediator between both perspectives and financial performance. Thus, the study suggests that SMEs can benefit from adopting an outside-in perspective to enhance both their organizational creativity and financial performance. Overall, the study contributes to the literature on the cognitive school of strategic management in SMEs.

Nexus of digital platforms, innovation capability, and strategic alignment to enhance innovation performance in the Asia Pacific region: a dynamic capability perspective

The direct influence of digital platforms on organizational efficiency, financial performance, and strategy attracts the close attention of researchers. The complex mechanisms and pathways of digital platforms on transformation capacity, however, are still unclear at the global and Asia Pacific levels. Drawing on dynamic capability theory, we empirically explore how digital platforms augment organizational innovation performance. We advance the current literature on digital platforms by finding that digital platform capability boosts an organization’s dynamism and innovation performance. Furthermore, we extend the literature by revealing that, indirectly, innovation capability and strategic alignment have a substantial influence over digital platform capability and innovation performance. Finally, the study formulates a conceptual model from a dynamic capability perspective, rather than from a resource-based view, and test it using the responses collected from 153 Pakistani manufacturing firms.

Unfolding design and technology for superior sales growth under moderating effect of technological environment

Purpose

Firms use design capability across the globe to compete and increase sales, e.g. Apple. However, the payoff from design know-how has been overlooked thus far. Academic research lags in this space despite the intersection of sales, technology and design in practice. This paper provides researchers and managers with implications of the interplay between design capability and technological market conditions to enhance a firm's sales.

Design/methodology/approach

Firms' capability design, and sales impact have been studied in this paper across different technological market conditions. Primary technological conditions of the industry under which firms operate are captured, which are technological intensity (TI), technological competitive intensity (TCI) and technological maturity (TM). Their interplay has been studied using panel data analysis, examining fixed and random effects.

Findings

Design is an important, interesting and non-imitable capacity that yields positive firm execution results. It provides an urgent differentiator and improves deal development. This study found that all four hypotheses are generally supported. The main finding is that, provided underlying technology is good, design significantly improves sales, but design alone cannot substitute for poor technology.

Practical implications

The results of this study link the three technological environment conditions, namely, TI, TCI and TM with sales growth. The authors find that design can and does add to superior performance, provided technological excellence exists prior. But, in the absence of good technology, design alone will hinder performance.

Originality/value

This paper examines the effect of firm design capability on sales growth. The paper finds a positive moderating effect of TCI and TM but a negative moderating effect of TI. The researchers believe these aspects of the design have not been studied before.

Understanding the relationship between IT capabilities and operational agility: a multi-method approach

Purpose

The system of information technology (IT)-oriented resources and processes that organizations need to develop to achieve operational agility remains unclear. The study research seeks to extend existing competency literature by incorporating the unique contextual nuances of the relationship between IT capabilities and operational agility.

Design/methodology/approach

Using a multi-method approach, this paper presents a theoretical framework of IT-enabled operations strategy that conceptualizes the role of IT capability in leveraging resources and processes for operational agility. Drawing on operations and information systems research, the authors advance that IT enables operational agility through two dimensions. From the perspective of a resource-based operations strategy, the authors explore the role of IT in resource-leveraging activities by investigating the nonlinear relationship between IT infrastructure and IT reconfiguration. From the perspective of a process-oriented operations strategy, the authors explore the role of IT in process-enhancing activities by investigating the nonlinear relationship between IT coordination and IT integration.

Findings

The study results, based on a sample of 113 organizations in Europe, Asia and North America, show that the interaction between IT infrastructure and IT reconfiguration positively influences operational agility, hence showing complementarity between the two constructs, while the interaction between IT coordination and IT integration negatively affects operational agility, hence indicating substitutability between the two constructs. A series of 62 interviews and a case study of Carrefour were further conducted to validate the field survey's results and to provide a finer grained explanation of the research model and quantitative findings.

Originality/value

The study findings offer an alternative explanation of the inconsistent relationship between IT capability and operational agility.

How do firms create business value and dynamic capabilities by leveraging big data analytics management capability?

Despite researchers having averred that big data analytics (BDA) transforms firms' ways of doing business, knowledge about operationalizing these technologies in organizations to achieve strategic objectives is lacking. Moreover, organizations' great appetite for big data and limited empirical proof of whether BDA impacts organizations' transformational capacity poses a need for further empirical investigation. Therefore, this study explores the association between big data analytics management capabilities (BDAMC) and innovation performance via dynamic capabilities (DC), by applying the PLS-SEM technique to analyzing the feedback of 149 firms. Consequently, we ground our arguments on dynamic capability and social capital theory rather than a resource-based view that does not provide suitable explanations for the deployment of resources to adapt to change. Accordingly, we advance this research stream by finding that BDAMC significantly enhances innovation performance through DC. We also extend the literature by disclosing how BDAMC strengthens DC via strategic alignment and social capital.

The role of enterprise information systems strategies enabled strategy-making on organizational innovativeness: a resource orchestration perspective

Purpose

The paper aims to establish the role of enterprise information systems strategies (ISS) enabled by business strategies for attaining organizational innovativeness (ORIN) mediated by performance (decision-making and business processes) under environmental turbulence.

Design/methodology/approach

The research framework is developed based on theoretical grounding and validated with the help of 408 responses from Brazil using SmartPLS path modeling.

Findings

The results of the research suggest that the resource orchestra of enterprise information systems strategy-enabled strategy-making can be a viable alternative to enhance innovation activities in the organizations through the mediated role of performance (decision-making and business process).

Practical implications

The research demonstrates the role of business function (information systems) strategy enabled overall business strategy-making for achieving innovations in the organization. Fortune organizations are exploiting the information systems strategy enabled business strategy for innovations in the organization; such as Amazon, Walmart, Costco, etc.

Originality/value

The proposed and validated model is a contribution to the enterprise information systems strategy theory. This model presents the role of resource orchestras in achieving innovations in organizations.

The Mediating and Moderating Effects of Top Management Support on the Cloud ERP Implementation–Financial Performance Relationship

Cloud enterprise resource planning (ERP) is one of the most sought after information technology (IT) solutions for improving business performance due to its affordability, scalability, and pay-per-use subscription model. The impact of cloud ERP implementation on business performance, on the other hand, remains inconclusive. Additionally, an important factor that transverses all organizational processes, including IT implementation, is top management support (TMS). However, the TMS role in the latter stage (business value realization) of implementation is unclear. The purpose of this paper is to examine the mediating and moderating impacts of top management support (TMS) on the relationship between cloud ERP implementation and financial performance. A total of 204 small and medium enterprises (SMEs) in Malaysia were surveyed, and data analysis was conducted using partial least square structural equation modelling (PLS-SEM). The results demonstrate that TMS plays a partial mediating role in the relationship between cloud ERP implementation and financial performance, and that this relationship is significantly stronger in SMEs with low TMS levels. As a result, it is concluded that top management should provide the required support following successful cloud ERP implementation in order to achieve positive financial results. However, the TMS role in the latter stage (business value realization) of cloud ERP implementation is unclear.

IT Governance mechanism and IT-enabled dynamic capabilities drives firm performance: An empirical study in Sri Lanka

Despite the growing amount of IT investment, IT governance decisions have ever more become complicated due to vague cost relationships, uncertain payoffs, rapid technological changes, and uncertain business environments. This study examines how IT governance mechanism and IT-enabled dynamic capabilities (ITDC) impact on firm performance in the turbulent environment. Drawing on the resource-based theory and dynamic capability theory this study conceptualizes that IT governance mechanism positively effect ITDC, that in turn positively impact on business process agility and firm innovative capability to achieve firm performance. Further, the moderating effect of turbulent environment is hypothesized between ITDC - business process agility and ITDC - firm innovative capability relationship. The finding from 188 senior IT and business manager's responses from Sri Lanka reveals the strong and positive relationship in the hypothesized relationship. In contrary to the expectation, the turbulent environment's both hypotheses (H6a and H6b) failed to show a significant moderating effect. This study proposes the theoretical and practical implications by empirically testing the proposed model in the Sri Lankan context. This study adds to the existing literature and extends the managerial practice by focusing on the key constructs such as IT governance mechanism, ITDC, Turbulent environment, and firm performance

Exploring Business Strategy Modelling with ArchiMate: A Case Study Approach

Enterprise architecture (EA) is a high-level abstraction of a business’ levels that aids in organizing planning and making better decisions. Researchers have concluded that the scope of EA is not focused only on technology planning but that the lack of business strategy and processes is the most important challenge of EA frameworks. The purpose of this article is to visualize the business strategy of a company using ArchiMate. Having a better understanding of how the concepts of strategic planning are used in businesses, we hope to improve their modelling with ArchiMate. This article adds to the existing literature by evaluating existing EA modelling languages and their skillfulness in model strategy. Furthermore, this article contributes to the identification of challenges in modelling and investigation of the ease of the use of language in the field of strategic planning. Furthermore, this article provides an approach to practitioners and EA architects who are attempting to develop efficient EA modelling projects and solve business complexity problems.

The impact of business analytics capability on data-driven culture and exploration: achieving a competitive advantage

Purpose

In today's business setting, the business analytic capability, data-driven culture and product development features are highly pronounced in light of the firm's competitive advantage. Though widespread attention has been given to the above concepts, there hasn't been much research done on how it could support achieving competitive advantage.

Design/methodology/approach

This research strongly lies on the theoretical background and empirically tests the hypothesized relationships. The primary survey of 272 responses was analysed by using the partial least squares structural equation modelling (PLS-SEM).

Findings

The findings of this study show a significant relationship for the constructs in the research model except for the third hypothesis. Accordingly, the firm's data-driven culture does not have a significant impact on new product newness.

Originality/value

This study empirically tests the business analytics capability, data-driven culture, and new product development features in the context of a firm's competitive advantage. The findings of this study contribute to the theoretical, practical and managerial aspects of this field.

Information technology (IT) governance and IT capability to realize firm performance: enabling role of agility and innovative capability

Purpose

With the ever-growing turbulent business setting, there is a great interest to study how a firm tailors information technology (IT) capability to shape agility and innovation capability to stay ahead of the competition. This study examines how IT governance and IT capability can be tailored to achieve firm performance through agility and innovative capability in a turbulent environment.

Design/methodology/approach

Drawing on the dynamic capability theory, this study based on the primary survey data of 253 responses from senior IT and business executives in China proves the hypothesized relationship in the proposed model.

Findings

This study shows that the IT governance mechanism positively impacts on IT-enabled dynamic capabilities. Further, IT-enabled dynamic capabilities positively impact on agility and innovative capability that in turn support to achieve firm performance. The environmental uncertainty is only significant in the IT-enabled dynamic capabilities–business process agility relationship.

Research limitations/implications

This study suggests corporate leaders and executives to better exploit their resources and tailor IT capabilities in the turbulent environment. Further, this study offers theoretical and practical implications.

Originality/value

This study proposes ways for executives to examine the multifaceted nature of environmental uncertainty to achieve agility, innovation and firm performance rather than simply investing in IT.

Impact of Strategic Orientations on the Implementation of Green Supply Chain Management Practices and Sustainable Firm Performance

Ensuring sustainability through green supply chain management practices has become challenging for the textiles and garments industry. Organizations need to examine the factors of the firm’s sustainability performance and how to manage them strategically. Hence, the strategic organizational orientation can be the best approach for implementing green supply chain management (GSCM) practices to improve firm sustainability performance. This study aims to assess the impact of strategic orientation in three dimensions, such as green entrepreneurial orientation (GEO), market orientation (MO), and knowledge management orientation (KMO) on the implementation of green supply chain management (GSCM) practices and the subsequently sustainable firm performance. Data were gathered from an extensive scale survey of 266 respondents of textile manufacturing firms in Bangladesh. Data were analyzed in the structural equation model (SEM) with partial least squares techniques to justify the proposed hypotheses. The results reveal that GEO and MO have a significant positive effect on GSCM practices, affecting sustainable firm performance. Surprisingly, KMO does not have a positive impact on GSCM practices. Further, this study reveals that GSCM practices partially mediate the relationship between GEO and sustainable firm performance while MO and KMO partially mediate the relationship between GEO and GSCM practices. Overall, findings help textiles firm management comprehensively understand the implementation strategies of GSCM practices in operations and reconfigure accordingly in the competitive business environment while improving firm performances. This study is the first to investigate the effect of strategic orientation on GSCM practices implementation in the textiles industry from the context of an upstream operation with a comprehensive understanding of the factors while reducing environmental impact.

Taxonomy of organizational alignment: implications for data-driven sustainable performance of firms and supply chains

Purpose

The purpose of this paper is to identify, characterize, classify and conceptualize different perspectives on strategic alignment still in use, propose a taxonomy and definitions that allow understanding the various coexisting concepts, as well as investigate the implications of strategic alignment for data-driven sustainable performance of firms and supply chains.

Design/methodology/approach

Bibliographic review was used.

Findings

The taxonomy proposes two classes of strategic alignment: (1) Align – more rigorous types of alignment: structure alignment, strategic congruence and strategy alignment; (2) Fit – less rigorous types of alignment: contingency strategic adjustment, strategic coalignment and strategic consistency. Companies are accumulating large amounts of data, which relevance varies widely. The strategic alignment can define criteria to select only the data that have strategic value, which restricts the amount of data to be analyzed. Each of the six types of strategic alignment is appropriate for a given situation in companies and/or supply chains.

Research limitations/implications

The limitations stem from the exclusive use of the taxonomy of strategic alignment, without considering the most diverse perspectives of strategy.

Practical implications

Decision makers will be able to identify more objectively which classes of data should be explored in each situation.

Social implications

Theoretical implications – The taxonomy proposal and the definition of each of the strategic alignment perspectives solve generalized misunderstandings resulting from the lack of a clear delimitation between the perspectives and the conceptual divergence between authors, who use them as equivalent or synonymous.

Originality/value

From 1961 to 2019, no paper was found proposing taxonomy, typology, systematization, ranking, distribution or classification of strategic alignment. The strategic alignment can define criteria to select, within the large amount of data accumulated by the company, only those that have strategic value, what restricts the quantity of data to be analyzed and facilitates the decision of the leaders.

IT strategy and business strategy mediate the effect of managing IT on firm performance: empirical analysis

Purpose

The multifaceted effect of IT in organizations has been widely examined. However, the intervening role of IT strategy and business strategy on the effect of managing IT on firm performance remains less strong. This study examines how managing information technology (MIT) effects on firm performance by looking at the mediating role of IT strategy and business strategy.

Design/methodology/approach

Drawing on the resource-based view of IT and contingency perspective, theoretical insights for managing IT and the mediating effect of IT strategy and business strategy on firm performance are established. The model is empirically tested by using hierarchical regression and structural equation modeling for the data collected through the survey of 194 senior IT and business managers in China.

Findings

The significant and impactful relationship found in the model for the proposed idea. The results show that both IT strategy and business strategy partially mediate the effect of managing IT on firm performance.

Research limitations/implications

The findings highlight that managing IT does not merely influence better firm performance; instead, the coherent amalgamation of IT strategy and business strategy can enrich firm performance. The theoretical and practical implications are also discussed.

Originality/value

In line with the call for rigorous research to integrate the managing IT and firm strategies, this study demonstrates the mediating role of business strategy and IT strategy between the managing IT and the firm performance relationship, hence contributing to the IS research literature.

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.