Moderating Effects of Human Factors on IT-Business Alignment and IT Effectiveness in Modern Firms

Teresita Navedo-Samper, Edgar Ferrer and Isabel Rivera-Ruiz
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Teresita Navedo-Samper: School of Business and Entrepreneurship, University of Turabo
Edgar Ferrer: School of Business and Entrepreneurship, University of Turabo
Isabel Rivera-Ruiz: School of Business and Entrepreneurship, University of Turabo

Journal of Knowledge Management, Economics and Information Technology, 2013, vol. 3, issue 2, 3

Abstract: Information technology (IT) emerges as an essential asset of modern firms’ competitive advantage, because it connects all business functions and supports managerial decision processes – both essential conditions for the attainment of the organization agility level. However, many modern firms experience difficulties on attaining its competitive edge, mainly because of a deficient IT- Business managerial role that, either deliberately or involuntarily, ignores the moderating effects of human factors – social determinants that are common elements to all hierarchy levels, of every business unit, within any modern firm. This work emphasizes the importance studying the IT-Business management function, as the organization’s main trigger for the attainment of the IT- Business Competitive Advantage, through an appropriate management of the moderating effects of human factors. This research paper also proposes a business conceptual model – “The Five-Level Triad of IT-Business Competitive Advantage” – which predicts the achievement of a modern firm IT-Business Competitive Advantage, through the advancement of five progress levels – IT-Business Managerial Role Efficiency, Employee Alignment, IT-Business Alignment, IT Effectiveness, and Firm’s Agility. The rationale of the model is supplemented by the referenced literature and the application of a measuring instrument, which assists in the examination of the alignment maturity level, between IT and Business organizational objectives. The model acts as a guide to any modern firm IT-Business managerial function, which aims for the successful design of an effective IT strategy, on the road to the conquering of the IT-Business competitive advantage.

Date: 2013
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