Article2008

The influence of strategy‐making types on IT alignment in SMEs

26 citations0/0 files storedJournal of Systems and Information Technology

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Information Technology Governance and Strategy ERP Systems Implementation and Impact Information Systems Education and Curriculum Development

Abstract

Purpose The purpose of this paper is to evaluate and compare the influence of three strategy‐making modes (planned, adaptive and entrepreneurial) on IT‐business strategy alignment in small to medium‐sized enterprises (SMEs). Design/methodology/approach Empirical research using a questionnaire was conducted. In total, 108 SME owners and managers participated in the study and the data were analysed using quantitative techniques. Findings The planned mode provided better results as predicted. Each strategy‐making mode was found to influence certain specific aspects of alignment and performance. For instance the planned mode ensures better understanding of business and IT objectives and provides high growth sales. The adaptive mode encourages participation of stakeholders in planning and improves communication and staff productivity. The entrepreneurial mode can facilitate immediate revision of plans in organizations operating in dynamic and competitive environment. Research limitations/implications Many factors influencing alignment were excluded. Second, the study was conducted in only three provinces and excluded the views of staff and IT personnel. These limit generalization of findings. Practical implications Assistance in planning and access to support programmes are necessary. Understanding the impact of SME characteristics can also assist the government in prioritizing resource allocations and focusing development programmes. The inconclusive results of this study, the impact on alignment of practices such as corporate governance, use of the balanced scorecard, and affirmative action should be researched further. Originality/value This was the first attempt to investigate the relationship between strategy‐making practices and IT alignment in South African SMEs. It provides empirical evidence confirming that these practices influence specific aspects of alignment and performance. SME managers can adopt the approach used to identify practices that ensure better alignment.

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References

1978Organizational Strategy, Structure, and Process 1989The Concept of Fit in Strategy Research: Toward Verbal and Statistical Correspondence 2018The Concept of Fit in Strategy Research: Towards Verbal and Statistical Correspondence 2000Factors That Influence the Social Dimension of Alignment Between Business and Information Technology Objectives1 1997Entrepreneurial strategy making and firm performance: tests of contingency and configurational models 1999The Dance of Change: The challenges to sustaining momentum in a learning organization 2000From Control to Drift: The Dynamics of Corporate Information Infrastructures 1999The dance of change: The challenges to sustaining momentum in learning organizations

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