A Causal Model of Strategic Alignment and Firm Performance

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Earlier studies in 1980s found no causal links between IT investments and productivity, since then a growing body of research has been investigating such links at a much finer-level of analysis. Yet the results have been inconclusive. The authors attribute the mixed findings to an incomplete causal chain analysis, specifically the exclusion of key constructs such as strategic alignment which would allow a better understanding of how organizations can leverage IT to positively influence firm performance. In this paper, they propose a framework that conceptualizes strategic alignment as the directional linkages between business and IT strategy, and examine how previously identified antecedent variables affect the linkages.

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