Investigating a Causal Model of IT-Business Partnership and Competitive Advantage

Abstract:

Although researchers have encouraged further exploration on the causal links between Information Technology (IT) investments and a firm’s competitive advantage, outcomes of empirical studies have been non-conclusive. This is to a certain extent owing to the omission of IT-business strategic partnership (also known as strategic alignment). Indeed, strategic alignment has emerged as one of the most important issue facing business and IT executives all over the world. Importance aside, what is not clear is how to achieve and sustain this harmony relating business and IT. Therefore, scholars have continuously called for research that addresses the antecedent factors that lead to the alignment. In addition, some scholars have called for further adjustments to the concept of alignment by applying new theoretical approaches which have not been explored in the field of information systems (IS). Therefore, the purpose of this paper is to provide a detailed roadmap in which practitioners can use to understand the resources required to realize the potential values of their IT investments. This could be achieved by presenting further insight to the factors that could lead to strategic alignment; and investigating the relationships among strategic alignment antecedents, strategic alignment and competitive advantage.

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