Aligning IT, strategic orientation and organizational structure

Purpose – The purpose of the paper is to examine and analyze the alignment between (information technology) IT, strategic orientation (SO) and organizational structure (OS) and their impact on firm performance (FP). Design/methodology/approach – A theoretical framework is proposed regarding the constructs of IT, SO and OS. A model incorporating these three constructs is examined and their impact on FP is assessed using structural equation modeling (SEM). The sample data from 295 firms were obtained through structured questionnaires. Findings – The results of the SEM support the hypothesis that the alignment between IT, SO and OS significantly affects FP. Research limitations/implications – Non-financial and intangible performance measurements are not included and the sample is not homogeneous. Practical implications – This study suggests that managers should choose the appropriate level and type of IT, depending on a firm’s structure and SO, in order to benefit from the advantages of IT usage and achieve higher performance levels. Originality/value – This study presents an overview of the impact of SO, OS and IT on FP, and that shows that there is scope for further research into the inter-organizational relationships that exist between them.