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.