Strategic IT alignment and organization performance: A resource-based view

Abstract

The purposes of this study were to investigate the relationship among strategic Information Technology (IT) alignment and its support for core competencies, Information System (IS) capabilities, and over-all organizational performance under the Resource-Based View framework. The samples of this study were from 161 organizations selected via stratified random sampling taken from the Stock Exchange of Thailand (SET) official organization lists. The research tools used in this survey research were a structured questionnaire and a recommendation form. The Structural Equation Modeling (SEM) was assigned to test the hypothesis with Partial Least Square (PLS). The measurement model was assessed using Exploratory Factor Analysis (EFA) to explore the identified set of variables, and Confirmatory Factor Analysis (CFA) was used to redefine each construct and measurement model with PLS. Composite reliability test was applied to ensure the reliability of the results by examining the convergence and the discriminant validity of the constructs. The results revealed that the majority of respondents were male and their positions were mostly manager or associate manager. The level of the Chief Information Officers (CIO) ranked third level from top management. The majority of organizations (22.98%) were listed as industrial estate organization. The operation time of organizations were 21-30 years with less than 500 general staff and 21-30 IT/IS staff. Furthermore, the proportion of IT budget was within the range of 5-15 percent. The results of hypothesis tests asserted that the strategic IT alignment and IS capabilities positively affected IT support for core competencies. Furthermore, the IT support for core competencies yielded to a positive influence to the organizational performance. Finally, this study justified that the strategic IT alignment and IS capabilities positively affected the organizational performance through IT support for core competencies as the mediator of the model