Influence of Information Technology on Organization Strategy

Sibanda Mabutho () and Ramrathan Durrel ()
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Sibanda Mabutho: School of Accounting, Economics & Finance University of KwaZulu-Natal Westville Campus, DurbanSouth Africa
Ramrathan Durrel: School of Accounting, Economics & Finance University of KwaZulu-Natal Westville Campus, DurbanSouth Africa

Foundations of Management, 2017, vol. 9, issue 1, 191-202

Abstract: The exponential development of information technology has presented many opportunities to organizations; however, it has also presented several challenges. A key challenge is how do organizations effectively use information technology and incorporate it into their strategies to make full use of its capabilities as an enabler. The fast-changing nature of information technology has resulted in little empirical evidence on how it influences organization strategy. The Strategic Alignment Model was a popular model created to assist organizations to align their information technology and their business strategy; however, the growth of technology may have made this model irrelevant in this age. Therefore, organizations need to determine what factors drive this alignment. Using hermeneutic phenomenology, 12 in-depth interviews were conducted within IBM South Africa to determine real-life drivers that help create this alignment. The themes derived from the interview texts reveal that consumers are becoming more empowered; therefore, organizations need to be more flexible in their business models and strategies. Furthermore, the integration of cross-functional roles in the organization at the management level allow for improved alignment between information technology and strategy as better integrated roles bring a combination of these two elements.

Keywords: information technology; strategy; strategic alignment model; business models; digital; market disruption; phenomenology (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:founma:v:9:y:2017:i:1:p:191-202:n:2

DOI: 10.1515/fman-2017-0015

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