Successful Management of Information Technology:

A Strategic Alignment Perspective

Dr. Louis C.K. Ma
Department of Information Systems
City University of Hong Kong, HONG KONG
islma @ cityu.edu.hk
Prof. Janice M. Bum
School of Management Information Systems
Edith Cowan University, Churchlands, Perth, AUSTRALIA
j.bum@cowan. edu.au
Prof. Robert D. Galliers
Warwick Business School,
University of Warwick, Coventry CV4 7AL, UNITED KINGDOM
orsrg @ razor.wbs.warwick.ac.uk

Dr. Philip Powell

Warwick Business School
University of Warwick, Coventry CV4 7AL, UNITED KINGDOM
orspp @ razor.wbs.warwick.ac.uk

Abstract 1. Introduction to the IS Strategic Alignment

Although the information systems (IS) literature ofen
suggests that there is a need to align IS strategy with
business strategy, the benefits of IS strategic alignment are
dificult to determine. This paper describes a
configurational model of IS strategic alignment, that
evaluates not only the internal consistency between IS
strategy and business strategy but also contingency
approaches to managing different types of IS strategic
alignment. The four alignment types are termed Business-
strategy-led. Conservative, Organization-led and
Technology-led. Quantitative assessments on survey data
indicate the similarities and differences of IS success
factors which can be used to diagnose the strength and
limitations of IS Success among the four alignment types.
Qualitative analyses from the multiple case study
evaluations have identified good practices and pitfalls in IS
management. Hence, this paper contributes to both theory
and practice by extending the body of knowledge in
relation to strategic alignment of IS and providing
guidelines to managers to manage IS more successfully.
Configurational Model
A composite research model (Figure 1) termed "IS
Strategic Alignment Configurational Model" (Ma, 1997) is
used to link business unit strategy (using the Strategic
Orientation of Business Enterprise or STROBE, after
Venkatraman, 1989a) with IS strategy (employing the
Strategic Orientation of IS or STROIS, after Chan and
Huff, 1993). A contingency approach is adopted in the
formulation of this model whereby it proposes that
organizations in different alignment types may need
different approaches to IS management in order to address
specific issues relevant to the respective alignment types.
By matching the current strategic. position of the
organization or strategic business unit (SBU) as
represented by their STROBE and STROIS with one of the
four classifications of the matrix, the IS success
characteristics can then be compared.
This conceptual model has enabled the development of
a number of propositions:

1060-3425/98 $10.00 0 1998 IEEE

Proc. 31st Annual Hawaii International 13
Conference on System Sciences
 Business-stratenv-led: (Type B) Organizations in this
group demonstrate a relatively high strategic orientation of
business but low strategic orientation of IS (i.e. high score
in STROBE but low score in STROIS).
Proposition I : Organisations in the “business-
strategy-led” group will have a relatively lower level
of IS Success because their demanding business
environment is not matched with adequate support by
IS.
Conservative: (Type C) The strategic orientation of
“conservative” organizations is relatively low in both
business strategy and IS strategy (low scores in both
STROBE and STROIS).
Proposition 2: Organisations in the “conservative”
group will have a relatively lower level of IS Success
because a high level of IS success may not be required
by their less demanding business environment.
Organization-led: (Type 0) The strategic orientation of
“organization-led‘’organizations is reflected by high scores
in both STROBE and STROIS.
Proposition 3: Organisations in the “organisation-led‘’
group will have a relatively higher level of IS Success
Hiah
STROB
Low
STROIS
Figure 1: IS Strategic Alignment Configurational Model (based on STROBE vs. STROIS)
IS Success I I
Overall Satisfaction with IS I J
Table 1: Participation of Senior Executives in the Survey
2. Research Method
In order to investigate these propositions, a survey was
conducted and to cater for the interests of various stake-
holders within the chosen business unit of the same
organization, the investigation invited the participation of
multiple parties (Table 1). Three questionnaires were
designed to collect information, with most items being
measured on a 5-point Likert scale. This multiple
14
because their demanding business environment is
adequately supported by IS.
Technology-led: (Type T) The strategic orientation of
“Technology-led’’ organizations is reflected by low score
in STROBE but high score in STROIS.
Proposition 4: Organisations in the “technology-led”
group will have a relatively higher level of IS Success
because their less demanding business environment is
more than adequately supported by IS.
Venkatraman (1989b) discussed six types of strategic fit
(i.e. fit as moderation, mediation, profile deviation,
matching, covariation and gestalts) and the need for
statistical correspondence in the measurement of fit. While
Ma (1997) modeled fit as matching and moderation in the
classification of the four IS strategic alignment types, the
approach in this paper is based on clusters analysis (that
fits gestalt or configurations) by identifying high and low
IS perfomance or IS success within the sub-samples (i.e.
clusters of organizations corresponding to the four
configuration types).
High
Detailed I Detailed
J J
questionnaire approach was selected to ensure consistency
through comparison and contrast of the three views and,
thus, improve the validity of results. It also allows for
completeness, replicability and the possibility of
refinement. 14 organizations were selected for a small
scale pilot survey carried out in June 1994. The
questionnaires were subsequently revised to reduce the
length and complexity and minimize overlapping areas of
analysis.