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Performance Outcomes of Strategic and IT Competencies Alignment 1

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Information Technology Governance and Strategy Innovation and Knowledge Management Management and Organizational Practices

Abstract

This study empirically evaluates the business performance outcomes of aligning an organization's information technology (IT) competencies with its strategic competencies. Strategic competencies include components such as shared vision, cooperation, empowerment, and innovation, whereas IT competencies comprise connectivity, flexibility, and technological scanning. Top managers from 104 organizations completed a questionnaire analyzed with EQS, a structural equation modeling tool. Based on a covariation approach to alignment, results confirm that strategic and IT competencies alignment significantly enhances perceived business performance.

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References

1981Evaluating Structural Equation Models with Unobservable Variables and Measurement Error 1988Structural equation modeling in practice: A review and recommended two-step approach.1992Alternative Ways of Assessing Model Fit 1994Testing Structural Equation Models.1969The social psychology of organizing 1989EQS : structural equations program manual 1991The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation 1989LISREL 7 : user's reference guide

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