The Effects of Strategic Typology Model and Strategic Alignment on the Delivery Capability of an IT Organization

The Effects of Strategic Typology Model and Strategic Alignment on the Delivery Capability of an IT Organization

J. Stan Yarbrough (Platform Specialty Products, USA) and Mary L. Lind (Trident University, USA)
Copyright: © 2018 |Pages: 23
DOI: 10.4018/IJISSC.2018100105

Abstract

Measuring the state of IT alignment with business strategy is gradually becoming less elusive but practical approaches continue to be difficult to propose and execute. The results of this study indicate that higher degrees of IT strategic alignment with business occurs in Prospector and Analyzer types. Given the context of the STM model and the inclination of business strategy to center on a single type, these two models are most effective in generating IT capability over time. Defender STM types tend to lead to lower IT capability and low levels of alignment. It is recommended that the concept of IT alignment is as a function of information technology management, and the idea of making alignment solely the responsibility of the Chief Information Officer (CIO), fails to reach the goals of alignment, which requires strategic direction from a business that matches a Prospector or Analyzer type.
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It Strategy Alignment Theory

The theoretical foundations for this research are based on the theories of IT Strategy Alignment and the Strategic Typology Model (STM). IT Strategy Alignment theory is based upon the concept that if the business strategy and IT strategies closely align, there is higher performance. Two prevailing theories served as the cornerstone for the development of IT/business strategy alignment theory; the Strategic Alignment Model (SAM) (Henderson & Venkatraman, 1999) and the Strategic Typology Model (STM) (Miles et al., 1978). These two theoretical models consistently appear in much of the research in alignment theory. Although effective efforts have been made to validate the SAM and STM in several streams of research (Croteau & Bergeron, 2001; Avison, Jones, Powell, & Wilson, 2004; Huang, 2009), there is a gap in the literature addressing the combined effects of STM and alignment of the IT organization with the respective ability to deliver technology solutions, termed IT capability.

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