When examining previous research on the IT-business strategy relationship, it becomes evident that a key difficulty for organizations is the alignment of IT and strategy. We find that this alignment can be better understood when examining the heads of the IT and business strategy organizational components, the CIO and the CEO. We propose that a technologist CEO and/or a business savvy CIO will improve the communication and understanding between these components, therefore producing a higher level of strategic alignment. We also propose that the three dimensions of IT capability (which have already been linked business performance), a strong and responsive IT staff, a cost-effective & well-managed IT infrastructure, and an effective IT-business relationship, are direct outcomes of strategically aligned planning. We test our model using the Fortune 1000 insurance firms as our sample. Results indicate that firms with a business savvy CIO are more likely to have a higher IT capability than those without a business savvy CIO.
Giordano, Gabriel; Norman, Patrick; and Keane, Brian, "Executive Mindsets Influencing the Alignment of IT and Strategy " (2005). SAIS 2005 Proceedings. 49.