Strategic Aligment IT

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    Survey of Strategic Alignment Impacts on Organizational Performance

    in International European Companies

    Hajer KEFI

    Associate ProfessorCREPA, University of Paris-Dauphine

    Place du Marchal-De-Lattre-De-

    Tassigny 75016 Paris France

    [email protected]

    Michel Kalika

    Professor

    CREPA, University of Paris Dauphine

    Place du Marchal-De-Lattre-De-

    Tassigny 75016 Paris France

    [email protected]

    AbstractThe strategic use of technology based in-

    formation systems (IS/IT) is a fundamen-tal issue for every business. This is par-

    ticularly true in the case of firms that en-gage in international business activities.The present paper is part of an empiri-cally oriented project to investigate theimpacts of strategic alignment on organ-izational performance, especially in thecase of European International Compa-nies.We use Structural Equation Modeling toapprehend the strategic alignment con-cept as an emergent variable derived

    from the co variation of two components :(1) business strategy; and (2) the IS/IT

    strategy. Then, we explore the role of thisemergent concept as a determinant of or-ganizational performance.We use data from a large database con-

    structed due to survey instruments to as-sess the usage of IS/IT among Europeanfirms. 505 questionnaires have been ex-ploited in this study.The results obtained will be presentedand discussed in this paper.

    Key-words:

    Strategic alignment, organizational per-

    formance, co variation approach, struc-

    tural equation modeling.

    1. Introduction

    The globalization of business reflects the view that

    most companies have to compete in a borderless

    environment. Challenges and opportunities are

    tremendous especially in the European Commu-nity, where profound changes have been experi-

    enced (common currency, restructuring of Eastern

    Europe, etc.). The European companies have to

    compete in an increasingly competitive global

    market. They have to undergo the continuous

    threats of new entrants and substitute products and

    the strengthening bargaining power of all their

    business partners, within or beyond the European

    frontiers (Kalika, et al., 2003).

    In this context, the achievement of sustainable

    competitive advantage requires dramatic business

    process changes, moving toward more flexible and

    agile structures. Strategic alliances and partneringcan support and enable these transformations, via

    joint ventures, knowledge exchange, outsourcing,

    etc. Such arrangements can help companies (the

    small ones, as well as the giants) to target custom-

    ers once beyond their grasp.

    Historically, the role of IT in the organization has

    evolved. It has been treated for a long time as a

    cost center or an expense rather than a strategic

    weapon (Alter, 1995). Since the 1980s, this role

    has been recognized as strategic (Porter and

    Millar, 1985). It has been considered as an enabler

    to achieve competitive advantage. For some 20

    years now, the assumption that technology basedinformation systems (IS/IT) provide a crucial sup-

    port to operational and strategic business proc-

    esses has been widely accepted (Luftman, 1996;

    Ward and Griffiths, 1997). However, empirical

    evidence that provides a good correlation between

    IS/IT alignment with business strategy and organ-

    izational performance is still needed. As stated by

    Sabherwal and Chan (2001): empirical research

    on the performance implications of this alignment

    has been sparse and fragmented.

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    Building upon the strategic alignment model

    (Henderson and Venkatraman, 1993) and a co

    variation perspective of the alignment mechanism

    (Van de Ven and Drazins and Venkatraman,

    1989), we will try to examine whether the align-

    ment between business strategy and IS/IT strategy

    correlates positively with organizational perform-ance. A sample of 505 international companies

    mainly headquartered in the European Community

    and engaged in partnership and alliances will be

    used.

    2. Theoretical Background

    2.1 Defining strategic alignment

    Numerous alternative terms have been proposed to

    refer to the phenomenon of IS/IT and business

    strategy alignment in the current IS and manage-

    ment literature. First, concerning the term strat-

    egy, many variations exist, some authors talk

    about objectives (Reich and Benbasat, 1996),others find more accurate the term plan or

    planning (Lederer and Mendelow, 1989; Teo

    and King, 1996, 1997).

    In this paper, we will refer to the IS/IT strategy as

    the major choices concerning the implementation

    and usage of technology based information sys-

    tems within the firm (McFarlan, McKenney and

    Pyburn, 1983; Knight and Silk, 1990; Das et al.,

    1991). In a similar vein, Business strategy is de-

    fined here as the major choices that determine the

    firm positioning in the business arena (Porter,

    1980).

    Regarding the term alignment, there is no con-sensus between researchers. Lederer and Men-

    delow (1989) define it in terms of co-ordination

    which can be achieved when the information sys-

    tems strategy is derived from the organization

    strategy (p.6). They propose three domains of

    linkage : (1) content linkage, concerned with the

    consistency between business plans and IS/IT

    plans; (2) timing linkage, concerned with whether

    IS/IT plans are developed after, simultaneously or

    before business plans; and (3) personnel linkage,

    concerned with the degree of involvement of the

    different participants in the two planning domains,

    business and IS/IT.King and Teo (1997) explicit four types of inte-

    gration that describe evolving strengths of the

    relationship between business and IS/IT strategy

    (administrative integration, sequential integration,

    reciprocal integration and full integration).

    Reich and Benbasat (1996) view this relationship

    in terms of linkage: the degree to which the IT

    mission, objectives and plans supported and are

    supported by business mission, objectives and

    plans (p.56). They define linkage in terms of in-

    tellectual and social dimensions. According to

    them, intellectual linkage is achieved when the

    contents of IS/IT and business plans are internally

    consistent and externally valid. Whereas, social

    linkage occurs when IS/IT and business executives

    understand each others mission, objectives and

    plans.

    We consider the definition given by Henderson

    and Venkatraman (1993) as the most suitable for

    this study. These authors provide a comprehensive

    framework to approach the alignment concept and

    state it as the Strategic Alignment Model. In this

    framework, two distinct relationships are de-

    scribed: strategic fit and functional integra-

    tion. Strategic fit is the external relationship con-

    cerned with the harmonization of business strategy

    choices (e.g. business scope, partnerships, alli-

    ances) and strategic choices concerning IS/IT de-

    ployment. Functional integration is the corre-

    sponding internal relationship concerned with or-ganizational infrastructure and processes and IS/IT

    infrastructure and processes (Henderson and

    Venkatraman, 1993; Luftman, 1996).

    From this analysis, the authors identified four per-

    spectives on business IS/IT interaction, termed:

    (1) business execution; (2) competitive potential;

    (3) IT potential; and (4) service level.

    Although the strategic alignment model introduces

    an original reasoning in the IS field, it provides

    mainly a descriptive view and does not help firms

    deciding what perspective to adopt in what cir-

    cumstances. To address this issue, Luftman, Lewis

    and Oldach (1993) propose to identify the firmstrengths and weaknesses to identify what are the

    components of the strategic alignment model that

    can be considered as: (1) the strongest domain or

    anchor, which is the driver of change ;(2) the

    weakest domain or pivot, which is the area that has

    to be addressed; and (3) the impacted domain,

    where the changes driven by the anchor occur in

    order to find solutions to the pivot.

    Some research studies have attempted to go for-

    ward this analysis. Papp, Luftman and Brier

    (1995) propose to consider independently (non-

    fusion) and simultaneously (fusion) the four per-

    spectives; and identified 12 perspectives. Morerecently, Reich and Benbasat (2000) define two

    types of strategic alignment : (1) short term (busi-

    ness and IT executives understand and are com-

    mitted to each others short-term plans and objec-

    tives); and (2) long term (business and IT execu-

    tives share a common vision of the ways in which

    IT will contribute to the success of the business

    unit).

    We can also notice that a consensus appears

    among the body of research concerned with the

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    strategic alignment phenomenon: the alignment

    between business strategy and IS/IT strategy is

    recognized as a necessary prerequisite for compa-

    nies to realize benefits form there IS/IT invest-

    ments. Even though, empirical evidence that con-

    firms this proposition is still needed. Only, a few

    studies propose to operationalize the strategicalignment concept and to demonstrate that a posi-

    tive linkage exists between alignment and per-

    formance.

    Before examining this relationship empirically, we

    argue that contingency theory provides a good lens

    to view: first the relationship between the vari-

    ables that define strategic alignment; and second

    the implications of this strategic alignment on per-

    formance.

    2.2 Implications on Performance: A Con-tingency Approach

    We use Venkatramans (1989) and Van de Vens

    and Drazins (1985) work on the concept of fit to

    discuss the implications of strategic alignment on

    organizational performance at a theoretical and an

    operational level. Venkatraman (1989) defines fit

    from six different perspectives: matching, modera-

    tion, mediation, gestalts, co variation and profile

    deviation.

    Fit as matching is a theoretically defined match

    between two related variables (Venkatraman,

    1989). It is also related to Van de Vens and Dra-

    zins (1985) selection that considers fit as the re-

    sult of managerial choice to achieve congruence to

    organizational context. Using this perspective,

    Chan et al. (1997) found that strategic alignment

    contributes to achieve higher levels of perform-

    ance. To the contrary, another study (Palmer and

    Markus, 2000) using also the matching perspective

    has concluded that there is no linkage between the

    two variables.

    Fit as moderation (or interaction) refers to con-

    formance to a linear relationship of context and

    design (Van de Ven and Drazin, 1985). Here, the

    impact of a predictor variable (design variable) on

    a dependent variable (performance) is moderated

    by a third variable (context variable). Alignment

    or fit is the interaction between the moderator and

    the predictor (Shin, 2003).

    Fit as mediation considers the perspective of the

    intervention between an antecedent variable (busi-

    ness strategy or IS/IT strategy) and a consequent

    variable (performance). The mediation perspective

    has been adopted in multiple empirical studies that

    assess the strategic alignment implications on per-

    formance, as in Bergeron and Raymond (1995)

    and Teo and King (1996). According to these two

    studies, a positive relationship exists between the

    two variables.

    Fit as gestaltis related to a systems perspective, in

    which fit is understood as an internal congruence

    of many contingencies and performance criteria. It

    represented in an interpretive rather than a func-

    tional approach (Shin, 2003). Fit as gestalt is not

    commonly used in cross-sectional empirical stud-

    ies.

    Fit as co variation represents internal consistency

    among related variables. According to Venkatra-

    man (1989), co variation indicates the linkage

    (alignment) among considered independent vari-

    ables. This author suggests that first-or second-

    order factors from both exploratory and confirma-

    tory factor analyses could be utilized to identify

    the unobservable state of linkage (alignment). This

    perspective has been used by Croteau et al. (2001)

    who have found that higher level of alignment im-

    plies higher level of performance.

    Fit as profile deviation assumes the viability of

    profile specification for variable associated to a

    criterion variable. Fit represents the degree of ad-

    herence to a specified profile and the level of fit is

    expected to affect performance (Shin, 2003). Sab-

    herwal and Chan (2001) have used the profile de-

    viation perspective and have concluded that

    alignment affects perceived business strategies,

    but only in certain organizations (p. 11).

    3. Research study

    3.1 Research Model

    With this background, we now present a research

    model to examine the main research hypothesis in

    this study:

    The alignment considered as a co variation

    mechanism between business strategy and IS/IT

    strategy is positively correlated to organizational

    performance.

    This model is derived from the external compo-

    nent of Henderson and Venkatramans strategicalignment model (1993) called strategic fit. It

    proposes to link strategic alignment with organiza-

    tional performance and considers fundamentally

    this alignment as the product -at a certain point of

    time- of the co variation between two independent

    variables: business strategy and IS/IT strategy.

    This major argument in our study is the basis for

    our choices of how the variables will be depicted

    and linked.

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    Figure 1: the research model

    Business strategy is the first independent variable

    of the model. According to Henderson and

    Venkatraman (1993): this construct is concerned

    with decisions such as product-market offering

    and the distinctive strategy attributes that differen-

    tiate the firm from its competitors, as well as the

    range of make-versus-buy decisions, includingpartnerships and alliances.

    Many researchers have adopted the classical Miles

    and Snow (1978) typology of business strategy

    including Defenders, Analyzers and Prospectors,

    and have examined for each strategic type the

    linkage between alignment and performance (Cro-

    teau et al., 2000; Sabherwal and Chan, 2001).

    From a more pragmatic point of view, we will fo-

    cus on a specific achieved business strategy based

    on partnerships and alliances. For instance, we

    argue that:

    (1) the deployment of business beyond the physi-

    cal organizational borders, through outsourcing,

    externalization, delocalization and other modali-

    ties of partnership and alliances strategies are con-

    sidered now as unavoidable for companies en-

    gaged in international business (Faulkner, 1995;

    Bartlett and Goshal, 1998);

    (2) IS/IT are recognized as a very useful support

    to these strategic choices because they create elec-

    tronic linkages intra and inter-firms (Ives and Jar-

    venpaa, 1991; Reix, 2002, Kalika et al. 2003).

    IS/IT strategy is the second independent variable

    of our model. Henderson and Venkatraman (1993)

    argued that IS/IT strategy should be elevated from

    its traditional internal focus to address external

    issues of how the firm is positioned in the IT mar-

    ket place. These authors propose to consider both

    the external and the internal domains of IT. The

    external IS/IT domain involves at least three sets

    of choices: (1) Information technology scope (in-

    cluding local and wide-area networks, expert sys-

    tems, etc.); (2) Systemic competencies required to

    take fully advantage of IT; and (3) IT governance,

    including the selection and use of mechanisms to

    obtain IT competencies. The internal domain of IT

    addresses at least three components: (1) IS/IT ar-

    chitecture; (2) IS/IT processes; and (3) IS/IT

    skills.

    In this study, we argue that the IS/IT strategy con-

    struct can be addressed through four major

    choices: (1) IS/IT perceived strategic role; (2)

    IS/IT systemic competencies: those attributes ofIS/IT strategy that contribute to the creation of

    new business strategies or better support competi-

    tive advantage; (3) IS/IT architecture choices: the

    technical deployment of these information tech-

    nologies; and (4) IS/IT processes choices: the

    work processes central to the operation of IS/IT

    infrastructure (Kalika et al. 2003)

    Strategic alignment is considered as an emergent

    concept resulting from the co-variation at a spe-

    cific point of time between:

    (1) the attributes of business strategy: part-

    nerships and/or alliances strategic choices;

    (2) and those of IS/IT strategy: IS/IT strate-

    gic role; IS/IT systemic competencies; IS/IT archi-

    tecture choices; IS/IT processes choices.

    This approach is globally consistent with the

    original model of Henderson and Venkatraman

    (1993) who have explicitly termed: strategic

    alignment: the emergent concept. It is also ap-

    plied in respect of the co variation alignment

    mechanism defined by Van de Ven and Drazin

    (1985) and Venkatraman (1989). Furthermore, a

    number of recent empirical works have adopted

    this approach (Croteau et al. 2001).

    Organizational performance is the ultimate de-pendent variable of the model. As noted by Bruce

    (1998, p. 17): if alignment is needed to facilitate

    optimum business benefit, how do we know when

    we have it? It is important to look at the impact IT

    is having on business results.

    Evaluating performance related to IS/IT in the

    organizations is certainly one of the major issues

    in the IS field (Delone & McLean, 1992; Bryn-

    jolfsson, 1993). Concerning the studies related to

    IS/IT alignment, the analysis unit being measured

    PerformanceStrategic Alignment

    Business strategyOutsourcing / Partnership

    IS/IT strategy

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    is either IS effectiveness (Ma et al., 1998), com-

    petitive advantage (Kearns and Lederer, 2000) or

    IT business value (Tallon et al., 2000).

    In our model, we have chosen to focus on organ-

    izational performance and to measure it in a multi-

    dimensional perspective using five criteria: (1)

    productivity (addressed at the individual level); (2)

    Cost reduction; (3) Innovation capabilities; (3)

    reactivity capabilities toward business opportuni-

    ties; (4) responsiveness to customer requirements;

    (5) collaborative relationships with business part-

    ners (Kalika et al., 2003).

    3.2 Data collection and items identification

    We have used data from a database constructed by

    the Cegos Dauphine e-management observatory

    to assess the IT diffusion (Cooper and Zmud,

    1990) in the French and European companies.

    Data has been stored due to a survey consisting of

    two series of questionnaires: the first questionnaire

    investigates executives attitudes toward IT diffu-

    sion, usage and impacts in the firm; the second

    investigates how individuals experience IT imple-

    mentation in their day-to-day life at the workplace.

    The survey is conducted once a year during a pe-

    riod of five years (2001- 2005).

    To test our research model, we have used data

    colleted in 2002 due to the first survey instrument

    (the executives attitudes). A total of 505 ques-

    tionnaires were available for analysis (correspond-

    ing to 505 companies). 30% of the respondents

    were chief executives, 57% IT managers and 13%

    other business executives. 42% of the companies

    in the sample have multiple sites in the European

    Community, 22% are implemented worldwide.

    The manufacturing sector is strongly represented

    (49%), Telecommunications and IT services pro-

    viders represent 6% of the firms studied. The other

    characteristics of the sample are presented in the

    tables 1 and 2.

    50- 500 employees 75%

    501- 5000 employees 13%

    > 5000 employees 12%

    Table 1: The companies size

    French headquartered 61%

    European headquartered 28%USA headquartered

    (and operating in Europe)

    11%

    Table 2: the companies origin

    The first survey instrument (used in our study)

    includes 74 questions. Number of them relate spe-

    cifically to the four components of our model:

    business strategy, IS/IT strategy and organiza-

    tional performance. This instrument has been pre-

    tested before being phone-administered by a spe-

    cialized survey conducting company. Answers to

    all the questions are chosen from a 5-point Likert

    scale (from 1-strongly disagree, to 5-strongly

    agree). We have chosen the items that are the most

    relevant to operationalize our theoretical research

    model.

    In this model, strategic alignment is an emergent

    construct, resulting from the co-variation of the

    two constructs: business strategy and IS/IT strat-

    egy. As a latent variable considered as a second-

    order factor resulting from a confirmatory factor

    analysis, no specific item is needed to measure this

    construct.

    Business strategy, IS/IT strategy and organiza-

    tional are considered as first order factors meas-

    ured with reflective constructs (observed vari-

    ables: the items of the questionnaire).

    The table 3 depicts the four constructs of this

    model and their relating measurement criteria and

    questionnaire items.

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    construct Measurement criteria Questionnaire items

    Partnership Business strategy choice (Q8A): the business development of your

    firm strongly relies on partnerships

    Business Strategy

    Outsourcing Business strategy choice (Q8B): the business development of your

    firm strongly relies on activities outsourcingIS/IT perceived strategic role (Q9): Top management is committed to the

    strategic use of IS/IT

    IS/IT competencies (Q12): IS/IT contribute to build distinctive

    comparative advantage to your firm

    IS/IT architecture choices (Q47): the Cooperative relationships with

    your strategic partners are supported by elec-

    tronic linkages built upon IS/IT tools and

    architecture networks

    IS/IT strategy

    IS/IT processes choices (Q29): the work processes within intra and

    inter-firms group projects are facilitated due

    to IS/IT

    Individual productivity (Q13B): IS/IT usage has increased the pro-

    ductivity of the members of your firm

    Costs reduction (Q13C): IS/IT usage has led to costs reduc-

    tion in your firmInnovation capabilities (Q13D): IS/IT usage has increased the inno-

    vation capabilities of your firm

    Reactivity (Q13E): IS/IT usage has increased the reac-

    tivity of your firm to environment stimuli

    responsiveness to customer requirements (Q13F): due to IS/IT usage, the expectancies

    of the customers are more fully understood

    and satisfied

    Organizational per-

    formance

    Collaborative relationships with business

    partners.

    (Q13A): due to IS/IT usage, the relationships

    of your firm with their partners (suppliers)

    have significantly shifted from rivalry to col-

    laboration

    Strategic alignment Emergent variable (latent variable)

    No measurement criteria

    No Item

    Table 3: Items identification

    3.3 Data analysis and results

    The research model has been tested by structural

    equation modelling, using AMOS 4.0. The con-

    structs business strategy, IS/IT strategy and organ-

    izational performance are considered as non-

    observed or latent variables, measured by specific

    observed variables (the items Q8A, Q8B, Q9,

    Q12, Q29, Q47, Q13A, Q13B, Q13C, Q13D,

    Q13E and Q13F, see table 3).

    First, we examine if the overall model (the meas-

    urement model and the structural model, see ap-

    pendix, figure 2) presents good fit for the data. As

    noted by Chin and Newsted (1995), there is no one

    agreed goodness of fit measure for structural equa-

    tion models. Various goodness of fit measures are

    used to compare the estimated population covari-

    ance based on the structural equation model with

    the sample covariance matrix that is calculated

    from the sample data. As recommended by Rous-

    sel and al. (2002), we propose to use absolute,

    incremental and parsimonious goodness-of-fit in-

    dices to estimate the structural model. Table 4presents the indices obtained for this model and

    illustrates how they compare to the recommended

    indices and to the saturated model (where all the

    latent variables are interrelated).

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    Goodness-of-fit measures Observed values Recommended

    Absolute indices

    Chi-square

    Ddl

    119.802

    52

    None

    GFI .962 > .9

    AGFI .943 > .9Holfers critical N 294 > 200

    RMR .069 The closest to 0

    RMSEA .051 .9

    CFI .958 > .9

    Parsimonious indices

    Chi-square adjusted 2.304 As low as possible

    AIC 171.808

    (156.000 for the saturated model)

    As low as possible

    (the closest to the saturated

    model)

    ECVI .341

    (.310 for the saturated model)

    As low as possible

    (the closest to the saturatedmodel)

    PGFI .641 As high as possible

    Table 4: Goodness-of-fit of the model

    The overall fit indices are good. Therefore, the

    research model presented in figure 2 is plausible

    in the population. The regression coefficients and

    the squared multiple correlation coefficient R2

    (which is similar to the determination value in

    regression analysis) can now be examined.

    For all the variables in the model, the correlation

    coefficients are significant (C.R > 1.96; Chin,1998). The path coefficients represented in figure

    3 (see appendix) are standardized partial regres-

    sion coefficients.

    The strategic alignment variable is significantly

    correlated with both of the two independent vari-

    ables of the model: Business strategy and IS/IT

    strategy.

    The squared multiple correlation for organiza-

    tional performance is .759. The path from strate-

    gic fit to organizational performance is .871 (with

    a C.R = 10.671). This means that higher levels of

    strategic alignement lead to higher levels of or-

    ganizational performance.The overall fit indices, the squared multiple corre-

    lation coefficients for the constructs in the model

    and the path coefficients lend support to the vi-

    ability of the research model presented in figure 2

    (see appendix).

    4. Conclusions

    This study proposed a theoretical model adapted

    from the strategic alignment model of Henderson

    and Venkatraman (1993) and from previous theo-

    retical and empirical research studies related to the

    business/IT alignment issue. This model has been

    tested in the context of European international

    companies that engage in partnering and outsourc-

    ing activities to deploy their business strategies at

    an international level.

    We have used Structural Equation Modelling to

    apprehend the strategic alignment concept as an

    emergent latent variable derived from the covariation of the two former components and their

    corresponding measures, rather than an observed

    variable measured by perceptual items. Then, we

    have explored the role of this emergent concept as

    a determinant of organizational performance.

    The major finding of this study stipulates that

    these companies are likely to attain higher levels

    of performance if their IS/IT strategy presents

    concurrently the following characteristics: (1) Top

    management is committed to the strategic use of

    IS/IT; (2) IS/IT are recognized as a support for

    building distinctive comparative advantage; (3)

    the Cooperative relationships with the firms stra-

    tegic partners are supported by electronic linkages

    built upon IS/IT tools and architecture networks;

    and (4) the work processes in intra and inter-firms

    group projects are supported by IS/IT.

    This study provides support to previous empirical

    works. In this issue, further efforts are still needed

    to deepen the theoretical developments and to en-

    hance them by empirical validation. Other re-

    search perspectives could investigate contingency

    factors (management style, IT functionalities, us-

    ers characteristics, environment, size, etc.); or

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    conduct process-oriented studies that take explic-

    itly into consideration time as well as the align-

    ment context. The use of qualitative methodolo-

    gies (case studies for example), rather than quanti-

    tative methodologies (surveys in multi sector field

    settings) is also recommended.

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    Appendix.

    Performance

    IS/IT

    Strategy

    Alignment

    Businessstrategy

    Q8A

    Q8B

    Q9

    Q12

    Q47

    Q29

    Q13A

    Q13C

    Q13D

    Q13E

    Q13F

    Q13B

    e1

    e2

    e4

    e5

    e6

    e16

    e3

    e8

    e14

    e9

    e10

    e11

    e12

    e13

    e15

    Figure 2: The structural model

    Performance

    IS/IT

    Strategy

    Alignment

    BusinessStrategy

    Q8A

    Q8B

    Q9

    Q12

    Q47

    Q29

    Q13A

    Q13C

    Q13D

    Q13E

    Q13F

    Q13B

    e1

    e2

    e4

    e5

    e6

    e16

    e3

    e8

    e14

    e9

    e10

    e11

    e12

    e13

    e15

    .87

    .55

    .95

    .30

    .90

    .62

    .51

    .38

    .20

    0,56

    0,59

    040

    0,52

    .31

    .35

    .16

    .28

    .54

    .69

    .75

    .75

    .70

    .70

    .29

    .48

    .56

    .57

    .49

    .49

    Figure 3: Results of the structural equation modeling

    Performance

    IS/IT

    Strategy

    Alignment

    Businessstrategy

    Q8A

    Q8B

    Q9

    Q12

    Q47

    Q29

    Q13A

    Q13C

    Q13D

    Q13E

    Q13F

    Q13B

    e1

    e2

    e4

    e5

    e6

    e16

    e3

    e8

    e14

    e9

    e10

    e11

    e12

    e13

    e15

    Figure 2: The structural model

    Performance

    IS/IT

    Strategy

    Alignment

    Businessstrategy

    Q8A

    Q8B

    Q9

    Q12

    Q47

    Q29

    Q13A

    Q13C

    Q13D

    Q13E

    Q13F

    Q13B

    e1

    e2

    e4

    e5

    e6

    e16

    e3

    e8

    e14

    e9

    e10

    e11

    e12

    e13

    e15

    Figure 2: The structural model

    Performance

    IS/IT

    Strategy

    Alignment

    BusinessStrategy

    Q8A

    Q8B

    Q9

    Q12

    Q47

    Q29

    Q13A

    Q13C

    Q13D

    Q13E

    Q13F

    Q13B

    e1

    e2

    e4

    e5

    e6

    e16

    e3

    e8

    e14

    e9

    e10

    e11

    e12

    e13

    e15

    .87

    .55

    .95

    .30

    .90

    .62

    .51

    .38

    .20

    0,56

    0,59

    040

    0,52

    .31

    .35

    .16

    .28

    .54

    .69

    .75

    .75

    .70

    .70

    .29

    .48

    .56

    .57

    .49

    .49

    Figure 3: Results of the structural equation modeling

    Performance

    IS/IT

    Strategy

    Alignment

    BusinessStrategy

    Q8A

    Q8B

    Q9

    Q12

    Q47

    Q29

    Q13A

    Q13C

    Q13D

    Q13E

    Q13F

    Q13B

    e1

    e2

    e4

    e5

    e6

    e16

    e3

    e8

    e14

    e9

    e10

    e11

    e12

    e13

    e15

    .87

    .55

    .95

    .30

    .90

    .62

    .51

    .38

    .20

    0,56

    0,59

    040

    0,52

    .31

    .35

    .16

    .28

    .54

    .69

    .75

    .75

    .70

    .70

    .29

    .48

    .56

    .57

    .49

    .49

    Performance

    IS/IT

    Strategy

    Alignment

    BusinessStrategy

    Q8A

    Q8B

    Q9

    Q12

    Q47

    Q29

    Q13A

    Q13C

    Q13D

    Q13E

    Q13F

    Q13B

    e1

    e2

    e4

    e5

    e6

    e16

    e3

    e8

    e14

    e9

    e10

    e11

    e12

    e13

    e15

    .87

    .55

    .95

    .30

    .90

    .62

    .51

    .38

    .20

    0,56

    0,59

    040

    0,52

    .31

    .35

    .16

    .28

    .54

    .69

    .75

    .75

    .70

    .70

    .29

    .48

    .56

    .57

    .49

    .49

    Figure 3: Results of the structural equation modeling

    .76

    Proceedings of the 38th Hawaii International Conference on System Sciences - 2005