Testing the Influence of Two ICT management Practices on Business/ICT Alignment

Business/ICT (Information and Communication Technology) alignment is an ongoing concern for both academics and practitioners. However, little academic research focuses on the process or practice of alignment. In this paper we build a theoretical model and test it empirically. We investigate the influence of ICT management intensity and investment justification on alignment. Four indicators are used for the ICT management intensity construct: ICT portfolio management, ICT performance management, ICT risk management and ICT change management. Investment justification reflects on how organizations justify ICT investments in the business case. We used the following indicators: economic impact, impact on building a competitive advantage, impact on keeping up with the competitors and impact on enhancing management information. Furthermore, we also examined the influence of alignment on the use of ICT for competitive advantage. The study relies on a rich data set of 641 European organizations. Our results indicate that ICT management intensity and investment justification are both positively associated with alignment.