Strategic IT-business alignment capability and organizational performance: roles of organizational agility and environmental factors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sukanya Panda

Purpose This study aims to test a model in which the effect of strategic information technology (IT)-business alignment capability (hereafter referred to as “strategic alignment”) on organizational performance is examined via the mediating role of organizational agility [studied as operational adjustment agility (OAA) and market capitalizing agility (MCA)] along with the moderating influence of environmental uncertainty. Design/methodology/approach The research uses survey data accumulated from 220 managers (IT and bank managers) working in the regional rural banks of Odisha, India. A structural equation modelling approach is used to investigate the strategic alignment-performance relationship. Findings The findings demonstrate the positive effect of strategic alignment on agility (studied as OAA and MCA). This paper finds the positive effects of strategic alignment and both OAA and MCA on organizational performance. The moderation analysis reveals that in an uncertain environment, strategic alignment has more impact on MCA than OAA. However, the test of mediation exhibits OAA as a more significant mediator promoting the strategic alignment-performance linkage, than MCA. This was further validated from the moderated-mediation analysis. Originality/value Although previous research studies (mostly conducted in the context of developed countries) have reported about the positive strategic alignment-agility-performance linkages, yet the literature is silent regarding the influence of external contingent factors on these relationships from a rural banking perspective in a developing country setting (such as India). The research extends the strategic alignment-agility-performance theories and provides empirical support for these unique associations in the context of rural banking in India and thereby, greatly contributes to the existing strategic alignment literature.

2018 ◽  
Vol 12 (4) ◽  
pp. 422-440 ◽  
Author(s):  
Sukanya Panda ◽  
Santanu Kumar Rath

Purpose This study aims to test a model in which the effect of strategic information technology (IT)-business alignment on organizational agility is examined by the moderating influence of environmental uncertainty. Design/methodology/approach This research utilizes a matched-pair survey data collected from 300 IT and business executives working in various privately owned Indian financial enterprises, and structural equation modeling is used to examine the alignment–agility linkage. Findings The analysis demonstrates the positive effect of alignment on agility (studied as business process and market responsive agilities), and alignment is more effective on business process agility than market responsive agility. However, the moderation analysis reveals that in a highly uncertain environment, alignment has more effect on market responsive agility but not on business process agility. Originality/value Although previous studies (mostly conducted in the context of developed countries) have reported about the positive IT-business alignment and organizational agility linkage, the literature is silent regarding the influence of external contingent factors on this relationship from a developing country perspective. The authors have conceptualized alignment on the basis of strategic alignment maturity model and meticulously examined its relationship with both categories of agility. This research extends the alignment-agility theory and provides empirical support for this unique association from a developing country (i.e. India) perspective, and thereby, greatly contributes to the alignment literature.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Sabbir Rahman ◽  
Fadi Abdel Muniem Abdel Fattah ◽  
Hasliza Hassan ◽  
Tayeenul Haque

Purpose The purpose of this study is to examine the underlying functions of sense of spirituality (SS), emotional intelligence (EI) and perceived work environment (PWE) towards knowledge sharing behaviour (KSB) among the academic staff of higher learning institutions (HLIs) through a comparative investigation. This study extends the investigation by examining the relationship between SS and KSB through the mediating role of EI. The moderating role of PWE between SS and KSB was also tested. Design/methodology/approach The sample comprised 300 responses from 150 Bangladeshi and 150 Malaysian academic staff of public and private HLIs. Convenient sampling tools were used. Structural equation modelling (SEM) was used to analyse the proposed model and hypotheses. The study explains the differences and similarities in KSB practices concerning SS, EI and PWE of the academic staff from the two countries’ HLIs. Findings The results support the direct positive effects of SS on KSB. The two data sets also support the indirect effects of SS on KSB through the mediation of EI. However, the results indicate that SS only promoted KSB among individuals with high levels of PWE in their respective institutions. For individuals with low levels of PWE, SS did not affect KSB. Practical implications The management of HLIs should engage their experiences and those of newly hired academic staff in the KSB process. However, in facilitating KSB culture among the academic staff, HLIs need to foster the staff’s SS, which ultimately improvises the EI to strongly influence KSB. The management of HLIs understands that SS may be inefficient in promoting KSB among employees with low PWE. Authorities of HLIs need to facilitate a quality work environment to enhance the association between SS and KSB. Originality/value This study is one of the initial attempts to investigate KSB by considering SS, EI and PWE in the context of Bangladesh and Malaysia HLIs. The findings of the study can serve as inputs to HLIs in developing best practices across KSB dimensions and improving academic staff performance.


2019 ◽  
Vol 41 (3) ◽  
pp. 420-435 ◽  
Author(s):  
Arshad Mahmood ◽  
Muhammad Naseer Akhtar ◽  
Usman Talat ◽  
Chuanmin Shuai ◽  
James C. Hyatt

PurposeThe purpose of this paper is to increase understanding of the influence mechanisms of specific HR practices variables – salary, job stability and job enrichment – upon employee commitment, through the mediating role of job satisfaction, in a developing country context. Crucially, these indicate employee commitment.Design/methodology/approachThe study analyzed three specific HR practices with a sample of 263 employees in the banking industry of Pakistan. A structural equation modeling methodology is adopted.FindingsThe findings indicate that remuneration strategies were positively related to job satisfaction and employee commitment. Regarding the intervening impact of job satisfaction, this study found that it mediates only for non-monetary strategies between job satisfaction and employee commitment.Research limitations/implicationsA key limitation is that this is a cross-sectional study, perhaps not generalizable over longitudinal approaches. Another limit is posed by the developing country context of this study, perhaps not applicable to some developed countries.Practical implicationsFrom an HR perspective, managing salary structure is an ongoing issue. The proposed model suggests the use of specific practices about satisfaction and commitment as intermediate steps to manage employee commitment.Originality/valueThe research offers a unique understanding from the developing country context of Pakistan. This provides a novel study conducted to examine employee commitment using the high-performance work practices model.


2020 ◽  
Vol 120 (7) ◽  
pp. 1265-1286
Author(s):  
Lei Li ◽  
Jiabao Lin ◽  
Ofir Turel ◽  
Peng Liu ◽  
Xin (Robert) Luo

PurposeThis study aimed to investigate the impact of e-commerce capabilities on agricultural firms’ performance gains through organizational agility.Design/methodology/approachA survey was used to collect data from 280 managers of agricultural firms. The proposed model was tested via structural equation modeling.FindingsThe empirical results indicated that organizational agility plays a mediating role in conveying the positive influences of e-commerce capabilities on agricultural firms’ performance gains. Specifically, managerial, talent and technical capabilities have different effects on market capitalization and operational adjustment agility, with talent capability performing the most important role. Market capitalization and operational adjustment agility have positive impacts on financial and nonfinancial performance gains, respectively.Originality/valueThis study provides a new framework to understand the relationships between e-commerce capabilities, organizational agility and agricultural firms’ performance gains.


2019 ◽  
Vol 32 (3) ◽  
pp. 457-476 ◽  
Author(s):  
Aboobucker Ilmudeen ◽  
Yukun Bao ◽  
Ibraheem Mubarak Alharbi

Purpose Despite the conceptual, empirical and theoretical advances in alignment–performance relationship, there is a limited research on the alignment dimensions and organizational performance measures. Though strategic alignment is believed to improve organizational performance, the purpose of this paper is to develop conjectures for understanding how different alignment dimensions influence organizational performance measures. Design/methodology/approach The data were acquired from 161 senior IT and business managers paired responses in China and were analyzed by using a structural equation modeling technique. Findings The hypothesized relationships are largely supported. Thus, quality-oriented strategic alignment dimension has a significant relationship with all performance measures. Contrary to expectations, both product and marketing-oriented strategic alignment dimensions do not show a significant impact on financial return. The marketing-oriented strategic alignment dimension also has an insignificant relationship with operational excellence. Practical implications This study suggests that the business–IT alignment can be dimensioned to better combine business strategy and IT strategy. Hence, managers can focus specific alignment dimension instead of entire strategies of a firm for a better decision making. Originality/value Findings suggest guidance for formulating combined business and IT strategic alignment into dimensions and proposing insightful and practical implications.


2019 ◽  
Vol 32 (1) ◽  
pp. 36-59 ◽  
Author(s):  
Amjad Iqbal ◽  
Fawad Latif ◽  
Frederic Marimon ◽  
Umar Farooq Sahibzada ◽  
Saddam Hussain

Purpose The purpose of this paper is to empirically investigate the effects of knowledge management (KM) enablers on KM processes in research universities and testing the direct relation between KM processes and OP. This study also proposes to examine the mediating role of intellectual capital (IC) and innovation in the relationship between KM processes and performance of universities. Design/methodology/approach Using a sample of 217 academic and administrative personnel from research universities of Pakistan, the hypothesized relationships were tested through partial least squares structural equation modeling technique. Findings The results reveal that KM enablers have a significant impact on KM processes. The results also indicate that KM processes influence organizational performance (OP) directly and indirectly through innovation and IC. Practical implications Findings of this study reinforce the corporate experience of KM and suggest how administrators of research universities and higher educational institutions can promote innovation and IC, which in turn enhance OP. Originality/value Despite the augmented importance of KM in higher education institutions or research universities, there is a dearth of studies that investigate the interplay of KM, innovation, IC and OP. This is one of the earliest studies that not only empirically investigate the interaction of KM enablers, KM processes and performance of research universities but also shed insights into the existing literature by simultaneously investigating mediating role of IC and innovation in the underlying relationship.


2015 ◽  
Vol 16 (4) ◽  
pp. 763-778 ◽  
Author(s):  
Juan-Gabriel Cegarra-Navarro ◽  
Gabriel Cepeda Carrión ◽  
Anthony Wensley

Purpose – People live and work in a world where they do not have complete knowledge and, as a result, they make use of rumours, beliefs and assumptions about relevant areas of concern. The term counter-knowledge has been used to refer to knowledge created from unverified sources. The purpose of this paper is to examine the relationship between counter-knowledge and human capital (HC) as well as investigating interactions between absorptive capacity (ACAP) and HC. Design/methodology/approach – A model is tested to examine the relationship between counter-knowledge, HC and the financial performance of 112 companies listed on the Spanish Stock Exchange. Findings – The results are calculated using structural equation modelling. This leads to the main conclusion that while the increasing presence of counter-knowledge leads to a reduction of ACAP and, by extension with HC. However, in the context of the sample, HC has positive effects on firms’ performance. Therefore, consideration must be given to the evaluation of the real cost of counter-knowledge or inappropriate assumptions on HC. Practical implications – The key managerial implication of this paper is that management should actively develop an organizational culture which questions the source of any knowledge and favours evidence-based reasoning over reasoning based on “gut instinct”, what has worked in the past and reasoning based on rumours and gossip. Originality/value – This paper provides empirical support for the argument that the all so-called “knowledge” generated from the sharing of unverified news is not necessarily good knowledge. Rumours or gossip shared thanks to unverified sources are some examples that illustrate people possibility to create inappropriate or false beliefs via unsupported explanations and justifications.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tahereh Hasani ◽  
Norman O'Reilly

Purpose The purpose of this paper is to depict the effects and relative importance of technological, organizational, environmental and managerial factors on the organizational performance of start-up businesses. Design/methodology/approach This research’s primary data was collected from 389 start-up companies in Malaysia. Principle component analysis and the orthogonal model with Varimax rotation method are used to perform exploratory factor analysis test. Structural equation modelling is also used in confirmatory factor analysis to explore the relationships between independent and dependent variables. Findings The findings suggest positive effects of technological and environmental characteristics on the organizational performance of start-up businesses. The managerial characteristics do not have any positive effect on the organizational performance of start-up businesses. The organizational characteristics split into two parts: the availability of internal financial resources, which positively affects the organizational performance of start-up businesses; and the availability of business incubation, which does not have any important effect. Moreover, start-up companies should choose the one with the highest perceived advantage as it would have the most significant positive effect on their organizational performance. In addition, it was detected that venture capitalists’ (VCs) support has the most positive influence on organizational performance and social customer relationship management adoption even more than governmental supports in the context of Malaysia. Originality/value The proposed framework of this research can be used not only as a research tool for examining determinant factors affecting organizational performance of start-up businesses but also by governments, VCs and other investors to detect best-performing start-up businesses.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aleksandr M. Kitsis ◽  
Injazz J. Chen

Purpose This paper aims to examine the complex links between environmental proactivity, collaboration with suppliers and customers, green operations and firm performance. Design/methodology/approach Based on a sample of 208 US companies, five main effects and two mediation effects were tested using structural equation modeling analysis. Findings This study reveals that environmental proactivity exerts positive effects on green operations and that collaboration mediates the above relationship. Further, green operations are a powerful driver of a firm’s economic and environmental performance. Findings also demonstrate the critical mediating role of green operations in linking collaboration with performance. Research limitations/implications This research contributes to a scholarly debate by offering novel insights into the extent to which proactivity improves firm performance may be influenced by multiple supply chain practices. To managers, this study highlights the strategic value of environmental proactivity as it fosters collaboration and green operations in boosting a firm’s environmental and economic performance. Originality/value This study addresses a gap in the literature by investigating the links between environmental proactivity, collaboration, green operations and corporate performance.


2020 ◽  
Vol 58 (1) ◽  
pp. 58-75 ◽  
Author(s):  
Hsian-Ming Liu ◽  
Hsin-Feng Yang

Purpose The purpose of this paper is to propose that a firm could exploit the ties of interfirm network to access external network resources (NR) to assist its sensing and responding capabilities for the variability of business environment, thereby leading to superior organizational performance. Design/methodology/approach This study uses the survey data collected from 260 small- and medium-sized enterprises (SMEs) in Taiwan to examine the causal effects of hypotheses testing. By adopting structural equation modeling technology, the direct and mediating effects among the NR, sensing capability (SC), responding capability (RC) and firm performance (FP) are explored. Findings The result of this paper shows that a firm’s NR and its organizational capabilities are critical antecedents of FP. Moreover, the mediating testing identifies NR and FP as being mediated by a firm’s organizational agility (OA) and RC. Practical implications The findings of this paper provide practical evidence that a SME could gain benefits and advantages from the joint effect of integrating NR and OA to compete with global conglomerates. Thus, a SME must put more effort into developing and maintaining its interfirm network and then figuring out its effect with its internal agility process in order to surmount unexpected changes, create advantages of the first-mover and innovation activities and boost the FP. Originality/value This paper combines external NR and internal OA and offers a practical strategy to a SME, creating a unique competitive advantage for further development in a dynamic business environment.


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