Abstract : In today's digital economy, organizations depend heavily on information technology (IT) to enhance competitiveness, efficiency, and innovation. Strategic alignment between IT strategy and business strategy ensures that technological investments support organizational goals and deliver measurable value. Organizations that successfully align IT capabilities with business objectives often experience improved operational performance, enhanced innovation capacity, and stronger market competitiveness. However, many organizations still struggle to integrate IT initiatives with strategic decision-making processes. Strategic alignment between Information Technology (IT) strategy and business strategy has become a critical determinant of organizational success in the digital economy. Organizations increasingly rely on technology to improve operational efficiency, enhance innovation capability, and achieve superior performance outcomes. This study examines the impact of IT–business strategic alignment on organizational performance through the mediating roles of innovation capability and operational efficiency. A quantitative research design was employed using a structured questionnaire distributed to employees and managers across technology-driven organizations. A total of 441 valid responses were collected and analyzed using Structural Equation Modeling (SEM). The findings indicate that IT adoption significantly influences innovation capability and operational efficiency, which in turn positively affect organizational performance. The results highlight the importance of aligning technological initiatives with strategic business objectives to achieve sustainable competitive advantage.
Cite : Imron, M. A. (2026). Strategic Alignment Between It And Business Strategy: Impact On Organizational Performance (1st ed., pp. 48-59). Noble Science Press. https://noblesciencepress.org/chapter/spebeparddias2026ch-06
References :
Henderson, J. C., & Venkatraman, N. (1993). Strategic alignment: Leveraging information technology for transforming organizations.
Luftman, J. (2000). Assessing business-IT alignment maturity.
Porter, M. E. (1985). Competitive Advantage.
Bharadwaj, A. (2000). A resource-based perspective on IT capability.
Tallon, P. P., & Kraemer, K. L. (2007). Strategic alignment and firm performance.
Benitez, J., Ray, G., & Henseler, J. (2018). Impact of IT infrastructure flexibility on mergers and acquisitions. MIS Quarterly, 42(1), 25–43.
Bradley, R., Pratt, R., Byrd, T., & Simmons, L. (2012). The role of IT in organizational performance. Information Systems Research, 23(3), 877–894.
Brynjolfsson, E., & McAfee, A. (2017). The business of artificial intelligence: What it can and cannot do for your organization. Harvard Business Review Press.
Cockburn, I. M., Henderson, R., & Stern, S. (2019). The impact of artificial intelligence on innovation. Research Policy, 48(1), 1–13.
Davenport, T. H., & Ronanki, R. (2018). Artificial intelligence for the real world. Harvard Business Review, 96(1), 108–116.
Jiang, Y., Liang, T., & Liang, Y. (2021). Artificial intelligence adoption and firm performance. Technological Forecasting and Social Change, 168, 120780
Mikalef, P., Krogstie, J., Pappas, I., & Pavlou, P. (2020). Big data analytics capability and firm performance. Information & Management, 57(2), 103169.
Raisch, S., & Krakowski, S. (2021). Artificial intelligence and management: The automation–augmentation paradox. Academy of Management Review, 46(1), 192–210.
Rubio-Andrés, M., Linuesa-Langreo, J., Gutiérrez-Broncano, S., & Sastre-Castillo, M. (2024). Digital transformation strategy and firm innovation. Journal of Technology Transfer.
Sabherwal, R., Hirschheim, R., & Goles, T. (2019). The dynamics of aligning business and information systems strategies. Information Systems Research.
Shao, Z. (2019). Interaction effect of strategic leadership behaviors and organizational culture. Information & Management, 56(6), 103–118.
Chau, N., Nassani, A., & Aldakhil, A. (2020). Strategic alignment and innovation performance. Technology in Society.
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J., Fabian, N., & Haenlein, M. (2021). Digital transformation and firm performance. Journal of Business Research, 122, 889–901.
