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Strategic IT business alignment deals with the capability of IT to both shape and support business strategy.It can be interpreted as an organizational learning process that combines business and IT knowledge to support business objectives and can positively affect organizational profitability by creating superior strategies that achieve a competitive advantage.These strategies have to be implemented because strategies are only effective when they are translated into actions readily.Therefore, we introduce the concept of operational IT business alignment, reflecting the functional integration at the structural level and representing the link between business and IT structure.Using structural equation modeling and data from 136 banks, we show that operational IT business alignment positively impacts dynamic IT and business capabilities and in turn strategic alignment and firm performance.
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