Analysis of IT Strategic Alignment and Infrastructure Capability in BPR Implementations

The purpose of this study is to examine the effect of alignment between IT and business strategy and IT infrastructure capability on BPR project performance and implementations in organizations. The research model was developed based on an intensive literature review of conceptual and empirical studies of BPR implementation in organizations. Questionnaires were sent out to senior managers and project leaders in 1,000 top organizations in Australia. A total of 287 responses were received. Multiple regressions with interaction terms were used to analyze the data. The analysis shows that the model explains 42.3% variance of problem severity in BPR implementations, and 16.2% variance of BPR performance. The results indicate that in BPR implementation, project leaders’ perceptions of pre-conditions have a greater impact on project performance as compared to senior managers’ perceptions. The analysis also reveals that the strategic alignment of IT and business has a moderating effect on the relationship between the perceived role of IT and BPR performance. In all, stable long-term IT strategy operates more effectively on performance than sensitive IT strategy. In order to reach the maximum performance, organizations should match IT strategy with different roles of IT.