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Paper Type

ERF

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Executives continue to grapple with a variety of issues involving strategic IT alignment (SITA) and adaptation to unexpected market events. For many firms, the rise of global competition and increasing volatility have frustrated efforts to pursue SITA and with it, efforts to achieve organizational agility. In the face of a volatile environment, aligning IT to a changing business strategy can be difficult if IT is slow to respond—any ensuing rigidity traps could hinder agility. This paper introduces a model of SITA based on the concept of loose coupling. In focusing on the form of SITA based on loose or tight coupling between IT strategy and business strategy, we look beyond performance impacts of SITA to investigate how SITA is shaped by environmental change and the resulting implications to organizational agility and performance. Propositions are introduced to help guide future research on SITA in dynamic environments.

Paper Number

1718

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Aug 10th, 12:00 AM

Achieving Strategic IT Alignment in Dynamic Environments: On the Value of Loose and Tight Coupling

Executives continue to grapple with a variety of issues involving strategic IT alignment (SITA) and adaptation to unexpected market events. For many firms, the rise of global competition and increasing volatility have frustrated efforts to pursue SITA and with it, efforts to achieve organizational agility. In the face of a volatile environment, aligning IT to a changing business strategy can be difficult if IT is slow to respond—any ensuing rigidity traps could hinder agility. This paper introduces a model of SITA based on the concept of loose coupling. In focusing on the form of SITA based on loose or tight coupling between IT strategy and business strategy, we look beyond performance impacts of SITA to investigate how SITA is shaped by environmental change and the resulting implications to organizational agility and performance. Propositions are introduced to help guide future research on SITA in dynamic environments.

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