Network adjacency in shaping intra-organizational perceptions about strategic IT-business alignment

Aalto University, P.O. Box 11000, FI-00076 Aalto www.aalto. fi Author Pirkko Lahdelma Name of the doctoral dissertation Network Adjacency in Shaping Intra-Organizational Perceptions about Strategic IT-Business Alignment Publisher Aalto University School of Business Unit Department of Information and Service Economy Series Aalto University publication series DOCTORAL DISSERTATIONS 36/2013 Field of research Information Systems Science Abstract The strategic alignment between IT and business has continued as one of the top concerns of IT executives for decades. One reason for alignment being such a persistent concern for IT executives can be the differing views on alignment level within companies. As the overall research question of this study is “What explains (dis-)similarities in the perceptions on strategic IT-business alignment within an organization”, the study focuses on the social dimension of strategic IT-business alignment. The research question is divided into two subquestions, in which the perceived IT-business alignment is examined in relation to following constructs: interaction patterns and formal structures. The focus is especially on the adjacency in these structures. In addition, the objective is to search for alternative explanations for the (dis-)similar perceptions of strategic IT-business alignment with the following constructs: perceived shared domain knowledge, relational similarity in age, education, gender, organizational tenure, and experiences from a recent IT-decision. The research methodology was to use quantitative methods designed for social network analysis in one empirical research setting. Data was gathered by using a questionnaire. Formal structures, informal networks, and true interaction patterns within the company were discovered by sociometric questions. The results revealed that the department structure has a significant effect on the similarity in the perceived IT-business alignment between a pair of individuals. Ties in discussion and advice networks had an impact on the similarity in the perceived alignment but affection-based informal networks, such as friendship, or formal cross-functional structures, such as steering committees, did not produce significant results. Respondents’ age, education, gender, or organizational tenure did not to have any significant effect, either. Experiences from a past ITdecision were important factors for both similarity in the views and for the perceived alignment level. This study contributes to research as well as practice in several ways. First, the results highlight the importance of a focus on the social dimension of strategic IT-business alignment. Secondly, a key principle of social network theory to focus on the relationships between individuals was added to alignment research. As a new construct for the alignment research, adjacency in work-related interaction patterns was found to have an effect on the similarity in the perceptions of strategic IT-business alignment, while also the functional department structure was confirmed to be an important factor. In terms of the managerial implications, the results highlight the importance of understanding the network dynamics within an organization because they contribute to the formation of the perceptions of strategic ITbusiness alignment.