The effect of strategic alignment on the use of IS-based resources for competitive advantage

Persuasive evidence has described the strategic use of information resources in organizations. As a result, IS researchers have sought empirically to link that use to improved organizational performance. However, this alignment-performance relationship has been difficult to confirm. The current study contributes by distinguishing the alignment of the information systems plan with the business plan (ISP-BP) and the reciprocal alignment (BP-ISP). The study used 107 matched pairs of IS executives and other senior executives. Analysis showed that for IS executives both ISP-BP and BP-ISP alignment predicted the use of IS-based resources for competitive advantage. However, for other senior executives, only ISP-BP alignment predicted it. Study results suggest both groups of subjects share an understanding of the role of ISP-BP in creating competitive advantage from their information systems investments. However, the lack of a shared understanding of BP-ISP alignment may prevent organizations from achieving that advantage. (C) 2000 Elsevier Science B.V. All rights reserved.