Main Article Content
SMEs, IT-Business Alignment Maturity Model, Short-term Linkage, Organizational Performance
Purpose:Using a conceptual framework of Sledgianowski and Luftman (2001), this paper empirically investigates how Japanese SMEs view their Strategy Alignment Maturity, Short-term Linkage, and Organizational Performance. The author examines a theoretical framework for assessing strategic alignment maturity by using a survey data of Japanese small and medium companies. The relationship between strategic alignment maturity and the mutual understanding of business and IT objectives between business and IT executives is analyzed.
Methodology: The methodology of this study is quantitative. Three hundred fifty-four (354) Japanese firm-level data collected have beenanalyzed using structural equation modeling.
Main Findings:The results show that factors associated with IT-Business Alignment Maturityof Japanese SMEs are statistically significantly positively related to organizational performance. However, those are statistically significantly negatively related to Short-term Linkage.Although the linkage of information system plans with organizational objectives (business plans) are positively related, this study implies that the linkage of information systems and each factor of IT–Business Alignment Maturity is rather weakas previous empirical literature suggested.
Applications:This study can be applied to the firm-level analyses where IT-Business Alignment Maturity and Short-term Linkage are in issue.
Novelty/Originality:The author examines the relationship between strategic alignment maturity and organizational performance by using a survey data of Japanese small and medium companies.
2. Bharadwaj, A. (2000). A resource based perspective on information technology and firm performance: An empirical investigation. MIS Quarterly, 24(1), 169-196.https://doi.org/10.2307/3250983
3. Blinder, A. (2001). La nueva economía”, en Internet Policy Institute: Informe al presidente de los Estados Unidos sobre Internet. Fundación Retevisión, Madrid, 33-38.
4. Bollen, K. A. (1989). Structural equations with latent variables. New York: Wiley.https://doi.org/10.1002/9781118619179
5. Browne,M W. and Cudeck,R. (1993),Alternative ways of assessing model fit.Sociological Methods and Research, 21, 230–239.https://doi.org/10.1177/0049124192021002005
6. Bush, M., Lederer, A.L., Li, X., Palmisano, J. and Rao, S. (2009). The alignment of information systems with organizational objectives and strategies in health care.International Journal of Medical Informatics, 78, 446-456.https://doi.org/10.1016/j.ijmedinf.2009.02.004
7. Byrd, T.A., Lewis, B.R. and Bryan, R.W. (2006). The leveraging influence of strategic alignment on IT investment: An empirical examination.Information and Management, 43 (3), 308–321.https://doi.org/10.1016/j.im.2005.07.002
8. Brynjolfsson, E. Hitt, L. and Yang, S. (2000). Intangible assets: How the interaction of computers and organizational structure affects stock market valuations,Massachusetts Institute of Technology Working Paper, http://ebusiness.mit.edu/erik/itqo%20final-7-001.pdf, Retrieved on August 3, 2017.
9. Byrne,B.M.(2010). Structural equation modeling using AMOS. Basic concepts, applications, and programming 2nd Ed, New York: Routledge.
10. Efron, B.(1982), The Jackknife, the Bootstrap and other resampling plans. CBMS-NSF Regional Conference Series in Applied Mathematics, Philadelphia: Society for Industrial and Applied Mathematics (SIAM).https://doi.org/10.1137/1.9781611970319
11. El-Telbanya, O., and Elragalb, A. (2014). Business-information systems strategies: A focus on. misalignment. Procedia Technology, 16, 250-262.https://doi.org/10.1016/j.protcy.2014.10.090
12. Galliers, R.D. (1987). Information system planning in Britain and Australia in the mid-1980s: Key success factors, Ph.D. dissertation, University of London, London, U.K. https://doi.org/10.1147/sj.382.0472
13. Henderson, J.C. and Venkatraman, N.V. (1993). Strategic alignment: leveraging information technology for transforming organizations. IBM Systems Journal. 32 (1), 472-484.https://doi.org/10.1147/sj.382.0472
14. Kohli, R.and Devaraj, S.(2003). Measuring information technology payoff: A meta-analysis of structural variables in firm-level empirical research. Information Systems Research, 14 (2), 127–145.https://doi.org/10.1287/isre.18.104.22.16819
15. Lea, B. R. (2005). Leveraging information technology to gain competitive advantage: A case study on General Electric Consumer Products. Journal of International Technology and Information Management, 1(1), 25-40.
16. Lederer, A. and Mendelow, A. (May 1986). Issues in Information Systems Planning.Information and Management, 10(5), 245-254.https://doi.org/10.1016/0378-7206(86)90027-3
17. Luftman, J.N. (2000). Assessing Business-IT Alignment Maturity. Communications of Association for Information Systems, 4(14), pp. 1-51.
18. Luftman, J. (2003). Assessing IT/business alignment. Information Systems Management, 20(4), 9-15.https://doi.org/10.1201/1078/43622.214.171.12430901/77287.2
19. Luftman, J. (2005). Key issues for IT executives. MIS Quarterly Executive, 4 (2), 269-285.
20. McAfee, A. (2001). The impact of enterprise information technology adoption on operational performance: an empirical investigation. Working paper, Harvard Business School, Boston.
21. Melville, N.; Gurbaxani, V.; and Kraemer, K.L. (2004). Information technology and organizational performance: An integrative model of IT business value. MIS Quarterly, 28(2), 283–322.https://doi.org/10.2307/25148636
22. Miyamoto, M. (2014). Empirical Study of the IT-Business Alignment Maturity in Japanese SMEs.AIMS International Journal of Management, 8(1). 41-55.
23. Miyamoto M. (2014). Competitive forces, IT strategy and business strategy: An empirical study on Japanese SMEs. In: Xu J., Cruz-Machado V., Lev B., Nickel S. (eds),Proceedings of the Eighth International Conference on Management Science and Engineering Management. Advances in Intelligent Systems and Computing, 280. Springer, Berlin, Heidelberg.397-414.
24. Porter, M.E. and Millar, V.E. (July-August 1985). How information give you competitive advantage.Harvard Business Review, 63(4),149-160.
25. Powell, T.C. and Dent-Micallef, A. (1997). Information technology as competitive advantage: the role of human, business and technology resources.Strategic Management Journal, 18 (5), 375-405. https://doi.org/10.1002/(SICI)1097-0266(199705)18:5<375::AID-SMJ876>3.0.CO;2-7
26. Reich, B.H.and Benbasat, I. (1994).A model for the investigation of linkage between business and information technology objectives. Research in Strategic Management of Information Technology. JAI Press Inc., 1, 41-72.
27. Reich, B.H. and Benbasat, I. (1996). Measuring the linkage between business and information technology objectives.MIS Quarterly, 20 (1), 55-78.https://doi.org/10.2307/249542
28. Sabherwal, R and Chan, Y.E. (2001). Alignment between business and is strategies: a study of prospectors, analyzers, and defenders. Information Systems Research, 1 (12), 11– 33.https://doi.org/10.1287/isre.126.96.36.19914
29. Sledgianowski, D. and Luftman, J. (2001). Assessing strategic alignment maturity and its effect on organizational performance and mutual understanding of objectives. AMCIS 2001 Proceedings. 331, 1729-1731.
30. Tallon, P.P., Kraemer, K.L., Gurbaxani, V. (2000). Executives’ perceptions of the business value of information technology: a process-oriented approach. Journal of Management Information Systems, 16, 145–173.https://doi.org/10.1080/07421222.2000.11518269
31. Tallon, P.P., Kraemer, K.L., (2007). Fact or fiction? A sensemaking perspective on the reality behind executives’ perception of IT business value. Journal of Management Information Systems, 24, 13–54.https://doi.org/10.2753/MIS0742-1222240101