Alignment of information technology strategy and business strategy : a study on its influence on the business performance of Saudi Arabia industrial small and medium enterprises /

As competition across the globe continues to intensify at a rapid pace, small and medium enterprises (SMEs) are required to adapt effective tools to improve their competitiveness. The experiences of the large sized companies reveal that the alignment between the business and IT strategies in the org...

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Bibliographic Details
Main Author: Alyahya, Majed Mohammed
Format: Thesis
Language:English
Published: Gombak, Selangor : Kulliyyah of Information and Communication Technology, International Islamic University Malaysia, 2016
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Online Access:Click here to view 1st 24 pages of the thesis. Members can view fulltext at the specified PCs in the library.
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Summary:As competition across the globe continues to intensify at a rapid pace, small and medium enterprises (SMEs) are required to adapt effective tools to improve their competitiveness. The experiences of the large sized companies reveal that the alignment between the business and IT strategies in the organization will effectively enhance their competitiveness, which is characterized by the improved operational efficiency and innovativeness. Having acknowledged the significance of the strategic alignment in elevating the competitiveness of large sized business organizations, it is important to investigate whether such approach plays a significant role in improving the competitiveness of SMEs. Specifically, this study examines the effect of strategic alignment on the performance of Saudi industrial SMEs, and the role of organizational cultures in moderating the relationship between strategic alignment and organizational performance. Both fax and web-based survey techniques have been used to collect data from Saudi manufacturing companies. A structural equation model was developed based on Strategic Alignment Model (SAM) of Henderson and Venkatrman (1999) to evaluate the role of strategic alignment on organization performance, and the moderation effect of organizational cultures. With 167 effective responses collected from the business executives of the participating Saudi manufacturing SMEs, the partial least square structural equation model (PLS-SEM) has been used to empirically test the model. The results of this study suggest that the alignment between business and IT strategies significantly improved the performance of Saudi manufacturing SMEs, however, organizational cultures did not play a major role in moderating the relationship between the two constructs. The research findings of this study have two industrial implications. First, since the achievement of proper alignment between business and IT strategies will improve the business performance of Saudi manufacturing SMEs, government institutions are suggested to provide more financial and human capital training support to assist these enterprises to be competent in achieving the state of alignment. Second, Saudi manufacturing SMEs should not put too much emphasis on seeking and developing the most appropriate cultures in their organizations in hope of improving their business performance with the alignment. Rather, more effort should be dedicated to ensure the achievement of strategic alignment in the organization.
Physical Description:xv, 209 leaves : ill. ; 30cm.
Bibliography:Includes bibliographical references (leaves 182-194).