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Continuous strategic alignment: Exploiting information technology capabilities for competitive success

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  • Venkatraman, N.
  • Henderson, John C.
  • Oldach, Scott

Abstract

There is widespread acceptance that information technology (IT) and information systems (IS) have evolved from a traditional administrative, back-office support orientation towards a more strategic, central role within organizations. In this paper, N. Venkatraman, John Henderson and Scott Oldach discuss analytical and administrative approaches for conceptualizing and managing the emerging nexus between strategic management and information technology. They discuss the analytical approach through their Strategic Alignment Model -- defined in terms of four basic domains of strategic choice: business strategy, information technology strategy; organization infrastructure and processes, and information technology infrastructure and processes. Subsequently, the administrative approach for achieving strategic alignment is discussed in terms of a set of alignment mechanisms: governance process, technology capabilities, human resource capabilities and value management. The power of this two-pronged model is highlighted through illustrations from the authors' research and professional experience.

Suggested Citation

  • Venkatraman, N. & Henderson, John C. & Oldach, Scott, 1993. "Continuous strategic alignment: Exploiting information technology capabilities for competitive success," European Management Journal, Elsevier, vol. 11(2), pages 139-149, June.
    • Handle: RePEc:eee:eurman:v:11:y:1993:i:2:p:139-149
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    1. Ismail Elnihewi & Rapiah Mohamed, 2015. "Effect of Organisational Structure and Competition on Organisational Performance in Libyan Commercial Banks," Information Management and Business Review, AMH International, vol. 7(6), pages 50-55.
    2. Uroš Zabukovšek & Polona Tominc & Samo Bobek, 2023. "Business IT Alignment Impact on Corporate Sustainability," Sustainability, MDPI, vol. 15(16), pages 1-37, August.
    3. Upson, John W. & Damaraju, Naga Lakshmi & Anderson, Jonathan R. & Barney, Jay B., 2017. "Strategic networks of discovery and creation entrepreneurs," European Management Journal, Elsevier, vol. 35(2), pages 198-210.
    4. Stanley Mwangi Chege, 2024. "IT Strategic Alignment Maturity and Business Performance for the Banking Industry in Kenya," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 10(4), pages 38-48, May.
    5. Andreas Drechsler & Stefan Weißschädel, 2018. "An IT strategy development framework for small and medium enterprises," Information Systems and e-Business Management, Springer, vol. 16(1), pages 93-124, February.
    6. Kai CHEN & Roxana STEGEREAN & Razvan Liviu NISTOR, 2018. "Value Creation And Value Added In Blockchain Technology," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(1), pages 862-878, November.
    7. Jie G. McCardle & Mary Beth Rousseau & Dennis Krumwiede, 2019. "The effects of strategic alignment and competitive priorities on operational performance: The role of cultural context," Operations Management Research, Springer, vol. 12(1), pages 4-18, June.
    8. Rajan, Rishabh & Rana, Nripendra P. & Parameswar, Nakul & Dhir, Sanjay & Sushil, & Dwivedi, Yogesh K., 2021. "Developing a modified total interpretive structural model (M-TISM) for organizational strategic cybersecurity management," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    9. M. N. Ravishankar & Shan L. Pan & Dorothy E. Leidner, 2011. "Examining the Strategic Alignment and Implementation Success of a KMS: A Subculture-Based Multilevel Analysis," Information Systems Research, INFORMS, vol. 22(1), pages 39-59, March.
    10. Sohaib S. Hassan & Konrad Meisner & Kevin Krause & Levan Bzhalava & Petra Moog, 2024. "Is digitalization a source of innovation? Exploring the role of digital diffusion in SME innovation performance," Small Business Economics, Springer, vol. 62(4), pages 1469-1491, April.
    11. Hyunseok Park & Janghyeok Yoon & Kwangsoo Kim, 2013. "Identification and evaluation of corporations for merger and acquisition strategies using patent information and text mining," Scientometrics, Springer;Akadémiai Kiadó, vol. 97(3), pages 883-909, December.
    12. Usai, A. & Fiano, F. & Messeni Petruzzelli, A. & Paoloni, P. & Farina Briamonte, M. & Orlando, B., 2021. "Unveiling the impact of the adoption of digital technologies on firms’ innovation performance," Journal of Business Research, Elsevier, vol. 133(C), pages 327-336.
    13. Gellweiler Christof, 2019. "Operational Excellence as the Main Customer Value: Information Technology Vendors' Perspective," Business Systems Research, Sciendo, vol. 10(1), pages 13-30, April.
    14. Tahir Ahmad & Amy Van Looy, 2020. "Business Process Management and Digital Innovations: A Systematic Literature Review," Sustainability, MDPI, vol. 12(17), pages 1-30, August.
    15. Booth, Marilyn E. & Philip, George, 2005. "Information systems management in practice: An empirical study of UK companies," International Journal of Information Management, Elsevier, vol. 25(4), pages 287-302.
    16. Sheikh Farhan Ashraf & Cai Li & Muhammad Umair Wattoo & Majid Murad & Babak Mahmood, 2024. "Green horizons: Unleashing green innovation through green business strategies and competencies," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4233-4251, July.
    17. Justice Odei Som & Hod Anyigba, 2022. "Examining the Effects of Information Systems Usage and Managerial Commitment on Supply Chain Performance: The Mediating Role of Supply Chain Integration," SAGE Open, , vol. 12(2), pages 21582440221, April.
    18. Syaiful Ali & Peter Green, 2012. "Effective information technology (IT) governance mechanisms: An IT outsourcing perspective," Information Systems Frontiers, Springer, vol. 14(2), pages 179-193, April.
    19. Mahmoona Khalil & Kausar Fiaz Khawaja & Muddassar Sarfraz, 2022. "The adoption of blockchain technology in the financial sector during the era of fourth industrial revolution: a moderated mediated model," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(4), pages 2435-2452, August.

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