Factors influencing the success of business-IT alignment : a study of South African firms

Business-IT alignment has persistently been a top management concern globally for a couple of decades. This is understandably due to the perceived benefits it offers organisations such as maximising returns on IT investments which improves organisational performance, and the achievement of competitive advantage. However, realising business-IT alignment has been a complex task. Nevertheless, business-IT alignment can be achieved by maximising its success factors. Though there has been significant research on the factors influencing the success of business-IT alignment, more studies are still required to increase its understanding as business-IT alignment still remains a chall9rlging issue . ',. ~ This study investigated the factors influencing the success of business-IT alignment in South African firms while taking into consideration the coverage of the requisite dimensions and paradigms of business-IT alignment. The impacts of the South African business operating environment and the industry sector of firms on the success factors for business-IT alignment were also examined. Data was gathered through semi-structured interviews with 10 CIOs of major firms in five industry sectors major retail, food and beverages, higher education, governmental organisation, and financial services. Though this study focused on major South African firms, the resesrch findings still have a good measure of applicability to similar firms in other countries. The data gathered was analysed using the general inductive approach which adopts grounded theory data analysis techniques. The general inductive approach typically leads to the development of a theoretical framework which was one of the objectives of this research. Regarding the research findings, 14 success factors for business-IT alignment covering the social, intellectual, and structural dimensions of alignment were discovered. These were consolidated into a theoretical framework which incorporates the impacts of the South African business operating environment and the industry sector of firms on the 'success factors' and by extension business-IT alignment. These 'impacts' which are positive and negative were found to vary across firms in different industry sectors. In addition, seven out of the 14 success Un ive rsi ty of Ca pe To wn Factors influencing the success of business-lT alignment: A study of South African firms factors for business-IT alignment were deemed to be novel; and four success factors were discovered to be more important than others with 'communication between business and IT' emerging as the most important success factor for business-IT alignment. Also, 'formal and coordinated SISP process' emerged as being foundational to the success of business-IT alignment. Furthermore, research findings indicate that regarding business-IT alignment paradigms, the process and state views are not distinct; rather, the process view of alignment encompasses the state view of alignment. This study's contribution to theory development lies in the theoretical framework of success factors for businessIT alignment and the propositions largely derived from the framework. These propositions can be tested by future studies. Finally, a key practical implication of the research findings is that the theoretical framework of success factors for alignment can be utilised to guide the achievement of business-IT alignment in practice.