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Aligning business and IT strategies in multi-business organizations

Reynolds, Peter and Yetton, Philip 2015, Aligning business and IT strategies in multi-business organizations, Journal of information technology, vol. 30, no. 2, pp. 101-118, doi: 10.1057/jit.2015.1.

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Title Aligning business and IT strategies in multi-business organizations
Author(s) Reynolds, Peter
Yetton, Philip
Journal name Journal of information technology
Volume number 30
Issue number 2
Start page 101
End page 118
Total pages 18
Publisher Springer
Place of publication Berlin, Germany
Publication date 2015-06
ISSN 0268-3962
1466-4437
Keyword(s) IT alignment
organizational performance
capabilities
IT strategy
IT strategic
planning
IT governance
Summary The alignment of business and information technology (IT) strategies is an important and enduring theoretical challenge for the information systems discipline, remaining a top issue in practice over the past 20 years. Multi-business organizations (MBOs) present a particular alignment challenge because business strategies are developed at the corporate level, within individual strategic business units and across the corporate investment cycle. In contrast, the extant literature implicitly assumes that IT strategy is aligned with a single business strategy at a single point in time. This paper draws on resource-based theory and path dependence to model functional, structural, and temporal IT strategic alignment in MBOs. Drawing on Makadok's theory of profit, we show how each form of alignment creates value through the three strategic drivers of competence, governance, and flexibility, respectively. We illustrate the model with examples from a case study on the Commonwealth Bank of Australia. We also explore the model's implications for existing IT alignment models, providing alternative theoretical explanations for how IT alignment creates value.
Language eng
DOI 10.1057/jit.2015.1
Field of Research 150302 Business Information Systems
Socio Economic Objective 900201 Administration and Business Support Services
HERDC Research category C1.1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2015, Springer
Persistent URL http://hdl.handle.net/10536/DRO/DU:30083704

Document type: Journal Article
Collection: Department of Information Systems and Business Analytics
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