Business-It Strategic Alignment: A Prerequisite for Digital Transformation

Business-IT strategic alignment grows in importance as organizations strive to link business and technology in light of their digital transformation agendas. Our research study used a field survey design to examine (a) the role of knowledge management processes in the relationship between contextual factors and alignment in a multinational corporation (MNC), and (b) the role of IT projects in the relationship between alignment and the performance and effectiveness of an MNC.The results of our research study had at least four implications to leaders in MNCs: (a) the effects of top managers' knowledge of IT on strategic business-IT alignment; (b) the importance of business-IT alignment to organizational performance and effectiveness; (c) the importance of internal context to knowledge integration; and (d) the role of senior management in knowledge management and strategic management of IT. A theoretical and practical perspective of business-IT strategic alignment in MNCs is provided. This study drew upon the strategic alignment model and the typology of MNCs to propose and test an IT strategic alignment model for MNCs (mSAM). The business-IT strategic alignment implementation model for MNCs (mSAIM) is the model for application proposed as the critical recommendation of our research study.