The Impact of IT-Business Strategic Alignment on Firm Performance: The Role of Environmental Uncertainty and Business Strategy

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Aligning Information Technology (IT) strategy with business strategy has been one of the top concerns of practitioners and scholars for decades. Although numerous studies have documented the positive effects of IT-business alignment on organizational performance, few considered the contextual factors that may influence the relationship. This paper attempts to fulfill this gap by investigating the role of environmental uncertainty and business strategy on the performance effects of the strategic alignment. Using survey data and statistical analysis, the authors show that the positive effect of the strategic alignment is significant only in high uncertainty environments.

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