The Impact of Information Technology Infrastructure Flexibility on Strategic Alignment and Applications Implementation
The Impact of Information Technology Infrastructure Flexibility on
Strategic Alignment and Applications Implementation
Sock H. Chung
Department of Computer Information Systems
College of Business
Eastern Michigan University
Ypsilanti, MI 48197 sock.chung@banyan.emich.edu R. Kelly Rainer, Jr. **
Department of Management
College of Business
Auburn University
Auburn, Alabama 36849
(334) 844-6527 rainer@business.auburn.edu Bruce R. Lewis
Calloway School of Business
Wake Forest University
Winston-Salem, NC 27109
(336) 758-7195 lewisb@wfu.edu ** Corresponding Author: Kelly Rainer
The Impact of Information Technology Infrastructure Flexibility on
Strategic Alignment and Applications Implementation
Abstract
IT infrastructure flexibility is now being viewed as an organizational core competency that is necessary for organizations to survive and prosper in rapidly-changing, competitive, business environments. Utilizing data from 200 U.S. and Canadian companies, this study examines the impact of the four components of IT infrastructure flexibility (compatibility, connectivity, modularity, and IT personnel) on strategic IT-business alignment and the extent of applications implementation within an organization. The findings from analysis of a structural model provide evidence that connectivity, modularity, and IT personnel have significant, positive impacts on strategic alignment and that all four components have significant, positive impacts on the extent of applications implementation. The study reinforces the importance of IT infrastructure flexibility to organizations as one source for sustainable competitive advantage.
Key Words: IT infrastructure flexibility, strategic IT-business alignment
I. INTRODUCTION In the early 1990s, Johnson & Johnson faced new business pressures when large customers, such as Wal-Mart and K-mart, made new demands on the company, such as cost savings and just-in-time stock replenishment.
Strategic Alignment and Applications Implementation
Sock H. Chung
Department of Computer Information Systems
College of Business
Eastern Michigan University
Ypsilanti, MI 48197 sock.chung@banyan.emich.edu R. Kelly Rainer, Jr. **
Department of Management
College of Business
Auburn University
Auburn, Alabama 36849
(334) 844-6527 rainer@business.auburn.edu Bruce R. Lewis
Calloway School of Business
Wake Forest University
Winston-Salem, NC 27109
(336) 758-7195 lewisb@wfu.edu ** Corresponding Author: Kelly Rainer
The Impact of Information Technology Infrastructure Flexibility on
Strategic Alignment and Applications Implementation
Abstract
IT infrastructure flexibility is now being viewed as an organizational core competency that is necessary for organizations to survive and prosper in rapidly-changing, competitive, business environments. Utilizing data from 200 U.S. and Canadian companies, this study examines the impact of the four components of IT infrastructure flexibility (compatibility, connectivity, modularity, and IT personnel) on strategic IT-business alignment and the extent of applications implementation within an organization. The findings from analysis of a structural model provide evidence that connectivity, modularity, and IT personnel have significant, positive impacts on strategic alignment and that all four components have significant, positive impacts on the extent of applications implementation. The study reinforces the importance of IT infrastructure flexibility to organizations as one source for sustainable competitive advantage.
Key Words: IT infrastructure flexibility, strategic IT-business alignment
I. INTRODUCTION In the early 1990s, Johnson & Johnson faced new business pressures when large customers, such as Wal-Mart and K-mart, made new demands on the company, such as cost savings and just-in-time stock replenishment.