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The growth of information technology has provided crucial support to enterprises for their growth and sustainability in today’s competitive and an uncertain business environment (Ravishankar, Pan, & Leidner, 2011). The extensive use of information technology has created dependency to align business strategy with information technology. Luftman et al. (2013) found that the appropriate alignment of business strategies with information technology is a key issue faced by CIOs. The failure in integration may result in the failure of information systems in organizations. Moreover, due to the globalization of economy and trade, enterprises are facing the dynamic change in technology and external market environment (Hung & Chou, 2013). The role of information technology is highly vital to support the day-to-day operations of enterprises and long-term strategic development of the organizations (Akaka & Vargo, 2014; Wang, Hu, & Hu, 2013). Consequently, to improve the operational efficiency of the firms and help them to attain competitive advantage in the rapidly changing market environment, the rational allocation of resources and use of information system has become a challenge for the management (Martins, Oliveira, & Popovič, 2014; Peppard & Ward, 2016).
Business strategy and information technology alignment is referred as the alignment of information technology in an appropriate and timely manner according to the goals, needs and business strategies (Alaceva & Rusu, 2015; Luftman & Brier, 1999). This is basically the collaborative process between organizations and IT managers which empower them to explore for opportunities embedding information system in the organization (Calantone, Garcia, & Dröge, 2003; Kam-Sing Wong, 2014). Past studies have shown that the coordination of information technology and enterprise business strategy is the key factor for the success of enterprise information system (Gerow, Grover, Thatcher, & Roth, 2014; Luftman, Lyytinen, & ben Zvi, 2017; Tallon, Coltman, Queiroz, & Sharma, 2016; Wu, Straub, & Liang, 2015). The ultimate goal of enterprises is to implement and use information systems to support the development of enterprise strategy. All the organization faces environmental uncertainty to some extent (Calantone et al., 2003). However, due to political and economic conditions of developing countries like Pakistan, the enterprises in Pakistan face higher environmental uncertainty as compare to the organizations operating in developed countries (Iakovleva, Kolvereid, & Stephan, 2011). Therefore, in order to effectively promote the coordination of information systems and business strategy in an uncertain business environment, managers should develop appropriate business strategy according to the characteristics of the business. It helps enterprises to gain long-term competitive advantages by means of information availability (Garrison, Wakefield, & Kim, 2015; Powell & Dent-Micallef, 1997; Reid, Hultink, Marion, & Barczak, 2016).