IT– Business Strategic Alignment in Influencing Sustainable Competitive Advantage in Jordan: Structural Equation Modelling (SEM) Approach

In many review articles or studies, the researchers have encouraged further exploration on the causal links between Information Technology (IT) investments and a firm’s sustainable competitive advantage. The outcomes of empirical studies have been inconclusive, which is to a certain extent due to th...

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Main Authors: Damnithan Al-Majali, Zulkhairi Md. Dahalin
Format: Article
Language:English
Published: UUM Press 2011-05-01
Series:International Journal of Management Studies
Online Access:https://www.scienceopen.com/document?vid=83e40b36-acb7-4bbf-9e33-959d8b9bee6b
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author Damnithan Al-Majali
Zulkhairi Md. Dahalin
author_facet Damnithan Al-Majali
Zulkhairi Md. Dahalin
author_sort Damnithan Al-Majali
collection DOAJ
description In many review articles or studies, the researchers have encouraged further exploration on the causal links between Information Technology (IT) investments and a firm’s sustainable competitive advantage. The outcomes of empirical studies have been inconclusive, which is to a certain extent due to the omission of IT-business strategic alignment. Indeed, strategic alignment has emerged as one of the most important issues facing business and IT executives all over the world. This paper reports on the empirical investigation of the success factors, which consist of leadership, structure and process, service quality, and values and beliefs, which are representative of the culture gap between IT strategy and business strategy. A questionnaire survey among 200 IT managers was carried out and 172 data sets were collected. This represented a 86% response rate. After a rigorous data screening process including outliers, normality, reliability and validity, 172 data sets were ready for structural equation modelling (SEM) analysis. Confirmatory Factor Analysis (CFA) was performed to examine the composite reliability, convergent validity and goodness of fit of the individual constructs and measurement models. The revised structural model demonstrates the relationships between all the four exogenous variables and IT-business strategic alignment, and all the four exogenous variables and sustainable competitive advantage. In addition, regarding the revised model there are two mediating effects of strategic alignment in the relationship between leadership, structure and process, service quality, values and beliefs, and sustainable competitive advantage.   Keywords: Strategic alignment, alignment gap, information technology, sustainable competitive advantage.
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spelling doaj.art-2a3f3b5cdcc54a35bbe00c27ba139fb82023-02-23T11:40:35ZengUUM PressInternational Journal of Management Studies2232-16082180-24672011-05-0110.32890/ijms.18.1.2011.10205IT– Business Strategic Alignment in Influencing Sustainable Competitive Advantage in Jordan: Structural Equation Modelling (SEM) ApproachDamnithan Al-MajaliZulkhairi Md. DahalinIn many review articles or studies, the researchers have encouraged further exploration on the causal links between Information Technology (IT) investments and a firm’s sustainable competitive advantage. The outcomes of empirical studies have been inconclusive, which is to a certain extent due to the omission of IT-business strategic alignment. Indeed, strategic alignment has emerged as one of the most important issues facing business and IT executives all over the world. This paper reports on the empirical investigation of the success factors, which consist of leadership, structure and process, service quality, and values and beliefs, which are representative of the culture gap between IT strategy and business strategy. A questionnaire survey among 200 IT managers was carried out and 172 data sets were collected. This represented a 86% response rate. After a rigorous data screening process including outliers, normality, reliability and validity, 172 data sets were ready for structural equation modelling (SEM) analysis. Confirmatory Factor Analysis (CFA) was performed to examine the composite reliability, convergent validity and goodness of fit of the individual constructs and measurement models. The revised structural model demonstrates the relationships between all the four exogenous variables and IT-business strategic alignment, and all the four exogenous variables and sustainable competitive advantage. In addition, regarding the revised model there are two mediating effects of strategic alignment in the relationship between leadership, structure and process, service quality, values and beliefs, and sustainable competitive advantage.   Keywords: Strategic alignment, alignment gap, information technology, sustainable competitive advantage.https://www.scienceopen.com/document?vid=83e40b36-acb7-4bbf-9e33-959d8b9bee6b
spellingShingle Damnithan Al-Majali
Zulkhairi Md. Dahalin
IT– Business Strategic Alignment in Influencing Sustainable Competitive Advantage in Jordan: Structural Equation Modelling (SEM) Approach
International Journal of Management Studies
title IT– Business Strategic Alignment in Influencing Sustainable Competitive Advantage in Jordan: Structural Equation Modelling (SEM) Approach
title_full IT– Business Strategic Alignment in Influencing Sustainable Competitive Advantage in Jordan: Structural Equation Modelling (SEM) Approach
title_fullStr IT– Business Strategic Alignment in Influencing Sustainable Competitive Advantage in Jordan: Structural Equation Modelling (SEM) Approach
title_full_unstemmed IT– Business Strategic Alignment in Influencing Sustainable Competitive Advantage in Jordan: Structural Equation Modelling (SEM) Approach
title_short IT– Business Strategic Alignment in Influencing Sustainable Competitive Advantage in Jordan: Structural Equation Modelling (SEM) Approach
title_sort it business strategic alignment in influencing sustainable competitive advantage in jordan structural equation modelling sem approach
url https://www.scienceopen.com/document?vid=83e40b36-acb7-4bbf-9e33-959d8b9bee6b
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