IDEAS home Printed from https://ideas.repec.org/a/inm/orisre/v28y2017i4p863-879.html
   My bibliography  Save this article

Unraveling the Alignment Paradox: How Does Business—IT Alignment Shape Organizational Agility?

Author

Listed:
  • Huigang Liang

    (College of Business, East Carolina University, Greenville, North Carolina 27858)

  • Nianxin Wang

    (School of Economics and Management, Jiangsu University of Science and Technology, Zhenjiang, 212003 Jiangsu, China)

  • Yajiong Xue

    (College of Business, East Carolina University, Greenville, North Carolina 27858)

  • Shilun Ge

    (School of Economics and Management, Jiangsu University of Science and Technology, Zhenjiang, 212003 Jiangsu, China; School of Management, Yancheng Institute of Technology, Yancheng, 224051 Jiangsu, China)

Abstract

Contradictory views exist regarding whether business–information technology (IT) alignment enhances or reduces organizational agility, and no consensus has been achieved. To disentangle this puzzle, this study takes both the intellectual and social dimensions of IT alignment into account and investigates how they influence agility in opposite directions through distinct mechanisms. Based on survey data from 429 dyads of business and IT executives, we uncover that intellectual alignment impedes agility by increasing organizational inertia, while social alignment facilitates agility by enhancing emergent business–IT coordination. We also find that social alignment weakens the effect of intellectual alignment on organizational inertia. This paper fills a gap in the information systems (IS) literature by providing a theory-driven explanation of the alignment paradox, which makes a significant contribution to both IS research and practice.

Suggested Citation

  • Huigang Liang & Nianxin Wang & Yajiong Xue & Shilun Ge, 2017. "Unraveling the Alignment Paradox: How Does Business—IT Alignment Shape Organizational Agility?," Information Systems Research, INFORMS, vol. 28(4), pages 863-879, December.
    • Handle: RePEc:inm:orisre:v:28:y:2017:i:4:p:863-879
    DOI: 10.1287/isre.2017.0711
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/isre.2017.0711
    Download Restriction: no
    File URL: https://libkey.io/10.1287/isre.2017.0711?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Arun Rai & Xinlin Tang, 2010. "Leveraging IT Capabilities and Competitive Process Capabilities for the Management of Interorganizational Relationship Portfolios," Information Systems Research, INFORMS, vol. 21(3), pages 516-542, September.
    2. Samer Faraj & Yan Xiao, 2006. "Coordination in Fast-Response Organizations," Management Science, INFORMS, vol. 52(8), pages 1155-1169, August.
    3. Rajiv Sabherwal & Yolande E. Chan, 2001. "Alignment Between Business and IS Strategies: A Study of Prospectors, Analyzers, and Defenders," Information Systems Research, INFORMS, vol. 12(1), pages 11-33, March.
    4. Kristina Dahlin & L. Weingart & P. Hinds, 2005. "Team diversity and information use," Post-Print hal-00480406, HAL.
    5. Jonathan W. Palmer & M. Lynne Markus, 2000. "The Performance Impacts of Quick Response and Strategic Alignment in Specialty Retailing," Information Systems Research, INFORMS, vol. 11(3), pages 241-259, September.
    6. Zi-Lin He & Poh-Kam Wong, 2004. "Exploration vs. Exploitation: An Empirical Test of the Ambidexterity Hypothesis," Organization Science, INFORMS, vol. 15(4), pages 481-494, August.
    7. Sarah Kaplan & Rebecca Henderson, 2005. "Inertia and Incentives: Bridging Organizational Economics and Organizational Theory," Organization Science, INFORMS, vol. 16(5), pages 509-521, October.
    8. Schmalensee, Richard, 1985. "Do Markets Differ Much?," American Economic Review, American Economic Association, vol. 75(3), pages 341-351, June.
    9. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    10. David S. Preston & Elena Karahanna, 2009. "Antecedents of IS Strategic Alignment: A Nomological Network," Information Systems Research, INFORMS, vol. 20(2), pages 159-179, June.
    11. Ann Majchrzak & Sirkka L. Jarvenpaa & Andrea B. Hollingshead, 2007. "Coordinating Expertise Among Emergent Groups Responding to Disasters," Organization Science, INFORMS, vol. 18(1), pages 147-161, February.
    12. Jahangir Karimi & Toni M. Somers & Yash P. Gupta, 2004. "Impact of Environmental Uncertainty and Task Characteristics on User Satisfaction with Data," Information Systems Research, INFORMS, vol. 15(2), pages 175-193, June.
    13. Kevin Zheng Zhou & Fang Wu, 2010. "Technological capability, strategic flexibility, and product innovation," Strategic Management Journal, Wiley Blackwell, vol. 31(5), pages 547-561, May.
    14. Thomas P. Moliterno & Margarethe F. Wiersema, 2007. "Firm performance, rent appropriation, and the strategic resource divestment capability," Strategic Management Journal, Wiley Blackwell, vol. 28(11), pages 1065-1087, November.
    15. Huigang Liang & Yajiong Xue & Liansheng Wu, 2013. "Ensuring Employees' IT Compliance: Carrot or Stick?," Information Systems Research, INFORMS, vol. 24(2), pages 279-294, June.
    16. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    17. Rebecca Henderson & Sarah Kaplan, 2005. "Inertia and Incentives: Bridging Organizational Economics and Organizational Theory," NBER Working Papers 11849, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zongyuan Liu & Harcharanjit Singh Mahinder Singh & Fatema Al Shibli, 2025. "What is a recognized mechanism for transforming big data analytics into firm performance? A meta-analysis from cultural view," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-20, December.
    2. Li, Lixu & Ye, Fei & Zhan, Yuanzhu & Kumar, Ajay & Schiavone, Francesco & Li, Yina, 2022. "Unraveling the performance puzzle of digitalization: Evidence from manufacturing firms," Journal of Business Research, Elsevier, vol. 149(C), pages 54-64.
    3. Jacques Bughin & Tobias Kretschmer & Nicolas van Zeebroeck, 2019. "From Experimentation to Strategy: The Role of Digital Technologies in Strategy Renewal," Working Papers TIMES² 2019-031, ULB -- Universite Libre de Bruxelles.
    4. Liang, Xiaoning & Li, Guoxin & Zhang, Hao & Nolan, Eimear & Chen, Fadong, 2022. "Firm performance and marketing analytics in the Chinese context: A contingency model," Journal of Business Research, Elsevier, vol. 141(C), pages 589-599.
    5. Li, Lixu & Zhu, Wenwen & Wei, Long & Yang, Shuili, 2022. "How can digital collaboration capability boost service innovation? Evidence from the information technology industry," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    6. Fotis Kitsios & Maria Kamariotou, 2021. "Artificial Intelligence and Business Strategy towards Digital Transformation: A Research Agenda," Sustainability, MDPI, vol. 13(4), pages 1-14, February.
    7. Teubner, Alexander & Stockhinger, Jan, 2020. "IT/IS strategy research and digitalization: An extensive literature review," ERCIS Working Papers 34, University of Münster, European Research Center for Information Systems (ERCIS).
    8. Terence J. V. Saldanha & Dongwon Lee & Sunil Mithas, 2020. "Aligning Information Technology and Business: The Differential Effects of Alignment During Investment Planning, Delivery, and Change," Information Systems Research, INFORMS, vol. 31(4), pages 1260-1281, December.
    9. Huigang Liang & Nianxin Wang & Yajiong Xue, 2022. "Juggling Information Technology (IT) Exploration and Exploitation: A Proportional Balance View of IT Ambidexterity," Information Systems Research, INFORMS, vol. 33(4), pages 1386-1402, December.
    10. Lööf, Hans, 2022. "What prevents spillovers from the pool of knowledge?," Working Paper Series in Economics and Institutions of Innovation 489, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    11. Nicolas van Zeebroeck & Tobias Kretschmer & Jacques Bughin, 2021. "Digital is Strategy: The Role of Digital Technology Adoption in Strategy Renewal," ULB Institutional Repository 2013/325553, ULB -- Universite Libre de Bruxelles.
    12. Jie Zhen & Cejun Cao & Hanguang Qiu & Zongxiao Xie, 2021. "Impact of organizational inertia on organizational agility: the role of IT ambidexterity," Information Technology and Management, Springer, vol. 22(1), pages 53-65, March.
    13. Javeed, Sohail Ahmad & Akram, Umair, 2024. "The factors behind block-chain technology that boost the circular economy: An organizational perspective," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    14. Zhang, Chenrui & Wang, Yatong, 2024. "Is enterprise digital transformation beneficial to shareholders? Insights from the cost of equity capital," International Review of Financial Analysis, Elsevier, vol. 92(C).
    15. Radzivon Marozau & Hanna Aginskaja & Maribel Guerrero, 2024. "ICT-related dynamic capabilities and SMEs’ performance: An analysis during the economic stagnation in Belarus," The Journal of Technology Transfer, Springer, vol. 49(5), pages 1696-1718, October.
    16. Jan Jöhnk & Philipp Ollig & Patrick Rövekamp & Severin Oesterle, 2022. "Managing the complexity of digital transformation—How multiple concurrent initiatives foster hybrid ambidexterity," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 547-569, June.
    17. Zhen, Jie & Xie, Zongxiao & Dong, Kunxiang, 2021. "Impact of IT governance mechanisms on organizational agility and the role of top management support and IT ambidexterity," International Journal of Accounting Information Systems, Elsevier, vol. 40(C).
    18. Yizhou Chu & Maomao Chi & Weijun Wang & Bo Luo, 2019. "The Impact of Information Technology Capabilities of Manufacturing Enterprises on Innovation Performance: Evidences from SEM and fsQCA," Sustainability, MDPI, vol. 11(21), pages 1-17, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. José Andrade & Mário Franco & Luis Mendes, 2021. "Technological capacity and organisational ambidexterity: the moderating role of environmental dynamism on Portuguese technological SMEs," Review of Managerial Science, Springer, vol. 15(7), pages 2111-2136, October.
    2. Liu, Yi & Liao, Yonghai & Li, Yuan, 2018. "Capability configuration, ambidexterity and performance: Evidence from service outsourcing sector," International Journal of Production Economics, Elsevier, vol. 200(C), pages 343-352.
    3. Youngjin Yoo & Richard J. Boland & Kalle Lyytinen & Ann Majchrzak, 2012. "Organizing for Innovation in the Digitized World," Organization Science, INFORMS, vol. 23(5), pages 1398-1408, October.
    4. Dan Lovallo & Alexander L. Brown & David J. Teece & David Bardolet, 2020. "Resource re‐allocation capabilities in internal capital markets: The value of overcoming inertia," Strategic Management Journal, Wiley Blackwell, vol. 41(8), pages 1365-1380, August.
    5. Ritu Singh & Parikshit Charan & Manojit Chattopadhyay, 2019. "Dynamic capabilities and responsiveness: moderating effect of organization structures and environmental dynamism," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(4), pages 301-319, December.
    6. Zhang, Haisu & Wu, Fang & Cui, Anna Shaojie, 2015. "Balancing market exploration and market exploitation in product innovation: A contingency perspective," International Journal of Research in Marketing, Elsevier, vol. 32(3), pages 297-308.
    7. Jing A. Zhang & Xiling Cui, 2017. "In Search Of The Effects Of Business And Political Ties On Innovation Ambidexterity," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-27, February.
    8. Maurice J. Lyver & Ta-Jung Lu, 2018. "Sustaining Innovation Performance in SMEs: Exploring the Roles of Strategic Entrepreneurship and IT Capabilities," Sustainability, MDPI, vol. 10(2), pages 1-27, February.
    9. Tom J. M. Mom & Frans A. J. van den Bosch & Henk W. Volberda, 2009. "Understanding Variation in Managers' Ambidexterity: Investigating Direct and Interaction Effects of Formal Structural and Personal Coordination Mechanisms," Organization Science, INFORMS, vol. 20(4), pages 812-828, August.
    10. Peter Abell & Teppo Felin & Nicolai Foss, 2008. "Building micro-foundations for the routines, capabilities, and performance links," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(6), pages 489-502.
    11. Kwangsoo Kim & Eun-Hwa Seo & Choo Yeon Kim, 2025. "The Relationships Between Environmental Dynamism, Absorptive Capacity, Organizational Ambidexterity, and Innovation Performance from the Dynamic Capabilities Perspective," Sustainability, MDPI, vol. 17(2), pages 1-28, January.
    12. Vaquero Martín, María & Reinhardt, Ronny & Gurtner, Sebastian, 2021. "The dilemma of downstream market stakeholder involvement in NPD: Untangling the effects of involvement and capabilities on performance," Journal of Business Research, Elsevier, vol. 124(C), pages 136-151.
    13. Ferraris, Alberto & Degbey, William Y. & Singh, Sanjay Kumar & Bresciani, Stefano & Castellano, Sylvaine & Fiano, Fabio & Couturier, Jerome, 2022. "Microfoundations of Strategic Agility in Emerging Markets: Empirical Evidence of Italian MNEs in India," Journal of World Business, Elsevier, vol. 57(2).
    14. Varghese P. George, 2014. "Technological Exploration And Market Exploitation In Interfirm Alliances," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 7(2), pages 1-14.
    15. Waleczek, Peter & von den Driesch, Till & Flatten, Tessa C. & Brettel, Malte, 2019. "On the dynamic bundles behind operations management and research and development," European Management Journal, Elsevier, vol. 37(2), pages 175-187.
    16. Terence J. V. Saldanha & Dongwon Lee & Sunil Mithas, 2020. "Aligning Information Technology and Business: The Differential Effects of Alignment During Investment Planning, Delivery, and Change," Information Systems Research, INFORMS, vol. 31(4), pages 1260-1281, December.
    17. Gu, Minhao & Yang, Lu & Huo, Baofeng, 2021. "The impact of information technology usage on supply chain resilience and performance: An ambidexterous view," International Journal of Production Economics, Elsevier, vol. 232(C).
    18. Ho, Hillbun & Osiyevskyy, Oleksiy & Agarwal, James & Reza, Sadat, 2020. "Does ambidexterity in marketing pay off? The role of absorptive capacity," Journal of Business Research, Elsevier, vol. 110(C), pages 65-79.
    19. Huigang Liang & Nianxin Wang & Yajiong Xue, 2022. "Juggling Information Technology (IT) Exploration and Exploitation: A Proportional Balance View of IT Ambidexterity," Information Systems Research, INFORMS, vol. 33(4), pages 1386-1402, December.
    20. Lee, Neil Chueh-An, 2021. "Reconciling integration and reconfiguration management approaches in the supply chain," International Journal of Production Economics, Elsevier, vol. 242(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orisre:v:28:y:2017:i:4:p:863-879. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.