Business Strategic Orientation, Information Systems Strategic Orientation, and Strategic Alignment

Abstract

Information systems strategic alignment—the fit between business strategic orientation and information systems (IS) strategic orientation—is an important concept. This study measured business strategic orientation, IS strategic orientation, and IS strategic alignment, and investigated their implications for perceived IS effectiveness and business performance. Analyses of data gathered in a mail survey of North American financial services and manufacturing firms indicated that 1) business strategic orientation, IS strategic orientation, and IS strategic alignment are modeled best by utilizing holistic, ‘systems’ approaches instead of dimension-specific, ‘bivariate’ approaches, 2) three generic IS strategic orientations can be detected, 3) user information satisfaction does not capture important strategic aspects of IS effectiveness, 4) IS strategic alignment is a better predictor of IS effectiveness than is strategic orientation, and 5) business strategic orientation, IS strategic alignment, and IS effectiveness have positive impacts on business performance.