110309 KatzyCrowstonSung_r2 to submit

A long-standing concern of information systems (IS) and business managers is the alignment between IS and business strategies as a prerequisite for organisational performance. This paper considers the processes of alignment in coordinated interorganisational networks (sometimes called virtual organisations). We present a case study of a systems development project in ARC Transistance, a network of thirty-eight national European automobile clubs that cooperate to provide pan-European roadside service. The case is analyzed using Henderson and Venkatraman’s (1999) strategic alignment model, following Eisenhardt’s (1989) suggestions on theory building from cases. The theoretical contribution of the paper is two-fold. First, we propose a modified strategic alignment model for inter-organisational networks that distinguishes between alignment of IS with a network strategy and alignment of IS with the multiple concurrent business strategies pursued by the collaborating firms. Second, we propose that for a network organisation, IS architectures should strive for being “business strategy-neutral” to the members to more easily accommodate the diversity of members.