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A model of factors affecting business and information technology alignment enabled by enterprise architecture: A structural equation modeling analysis

Posted on:2007-07-14Degree:Ph.DType:Dissertation
University:Capella UniversityCandidate:Sage, Theresa AFull Text:PDF
GTID:1449390005473461Subject:Business Administration
Abstract/Summary:
Alignment between business and information technology (IT) strategies remains on the top-ten lists of concerns for most senior executive managers. Enterprise architecture (EA) provides an approach and guidance for enabling better alignment. The purpose of enterprise architecture is to more effectively align the strategies of enterprises with processes and resources (IT and business) by standardization, blueprinting, and integration of information systems (IS). The research problem addressed by this study was the dysfunctional effect resulting from the lack of alignment between business strategy formation and information technology (IT) strategy, leading to increased costs and loss of competitive advantage. In the business-IT research domain, studies have been performed on the cognitive, social, and behavioral dimensions of alignment. The objective of this study was to develop a model addressing the three predominant alignment dimensions of cognitive, social, and behavioral factors for achievement of better business-IT alignment enabled by enterprise architecture. The research questions addressed were (a) what cognitive, social, and behavioral factors contribute to successful business-IT alignment as enabled through the practice of enterprise architecture; (b) do these factors relate to reducing costs as a measure of increased business-IT alignment, and if so, how; and (c) do these factors relate to increased, quantifiable determinants for competitive advantage as a measure of increased business-IT alignment, and if so, how. This model of factors influencing business-IT alignment enabled by the discipline of enterprise architecture was tested using the United States General Accounting Office (GAO) data from the 2001/2003 survey. The data was analyzed using structural equation modeling (SEM) techniques to validate the hypothesized model. The initial hypothesized model did not fit the GAO dataset. The model was therefore modified using modification indexes and statistical adjustments to the model. The final model, using maximum likelihood estimation analysis, demonstrated a good fit for the data. The key findings were that the factors of social, cognitive, and behavior indicated by use of enterprise architecture positively affect business-IT alignment.
Keywords/Search Tags:Alignment, Enterprise architecture, Business, Factors, Information technology, Model, Social, Cognitive
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