The Equilateral Agility Concept as Mediating Variable in Relationship between IT-Strategy Alignment and Sustainable Competitive Advantage

Lutfi Nurcholis, Budhi Cahyono

Abstract

This paper aims to investigate the effect of IT-strategy alignment, responsiveness, operational flexibility, and business relationship on sustainable competitive advantage and the mediating effect of responsiveness, operational flexibility, and business relationship in relationships between IT-strategy alignment and sustainable competitive advantage. Data were collected from 189 Batik SME in Pekalongan and analyzed by using Structural Equation Modeling (SEM). The result shows that IT-strategy alignment significantly affects responsiveness. Responsiveness, operational flexibility, and also business relationship significantly affect sustainable competitive advantage. Furthermore, responsiveness, operational flexibility, and business relationship mediate the correlation of IT-strategy alignment and sustainable competitive advantage. Responsiveness, operational flexibility, and business relationship have the confidence and value that puts customers on every business decision. It encourages Batik SME to improve the sustainable competitive advantage based on the customers’ expectations. IT-strategy alignment is essential to enhance responsiveness, operational flexibility, and business to gain a sustainable competitive advantage. That IT-strategy alignment can improve the sustainable competitive advantage of the Batik SME.

Keywords

IT-Strategy Alignment; Responsiveness; Operational Flexibility; Business Relationship; Sustainable Competitive Advantage.

Full Text:

PDF

References

Adler, P. S., Goldoftas, B., & Levine, D. I. (1999). Flexibility Versus Efficiency? a Case Study of Model Changeovers in the Toyota Production System. Organization Science, 10(1), 43-68.

Anand, A., Coltman, T., & Sharma, R. (2016). Four Steps to Realizing Business Value from Digital Data Streams. MIS Quarterly Executive, 15(4), 259-277.

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.

Baškarada, S., & Koronios, A. (2018). The 5S Organizational Agility Framework: a Dynamic Capabilities Perspective. International Journal of Organizational Analysis, 26(2), 331-342.

Bassellier, G., Benbasat, I., & Reich, B. H. (2003). The Influence of Business Managers’ IT Competence on Championing IT. Information Systems Research, 14(4), 317-336.

Baum, J. R., & Wally, S. (2003). Strategic Decision Speed and Firm Performance. Strategic Management Journal, 24(11), 1107-1129.

Benaroch, M., Lichtenstein, Y., & Robinson, K. (2006). Real Options in Information Technology Risk Management: an Empirical Validation of Risk-Option Relationships. MIS Quarterly: Management Information Systems, 30(4), 827-864.

Bergeron, F., Raymond, L., & Rivard, S. (2004). Ideal Patterns of Strategic Alignment and Business Performance. Information and Management, 41(8), 1003-1020.

Bradley, R. V., Pratt, R. M. E., Byrd, T. A., Outlay, C. N., & Wynn, D. E. (2012). Enterprise Architecture, IT Effectiveness and the Mediating Role of IT Alignment in US Hospitals. Information Systems Journal, 22(2), 97-127.

Breu, K., Hemingway, C. J., Strathern, M., & Bridger, D. (2002). Workforce Agility: the New Employee Strategy for the Knowledge Economy. Journal of Information Technology, 17(1), 21-31.

Burns, A. C., Bush, R. F., & Sinha, N. (2014). Marketing Research (Vol. 7). Harlow: Pearson.

Cai, Z., Liu, H., Huang, Q., & Liang, L. (2017). Developing Organizational Agility in Product Innovation: the Roles of IT Capability, KM Capability, and Innovative Climate. R&D Management, 49(4), 421-438

Chakravarty, A., Grewal, R., & Sambamurthy, V. (2013). Information Technology Competencies, Organizational Agility, and Firm Performance: Enabling and Facilitating Roles. Information Systems Research, 24(4), 976-997.

Chan, Y. E., Huff, S. L., Barclay, D. W., & Copeland, D. G. (1997). Business Strategic Orientation, Information Systems Strategic Orientation, and Strategic Alignment. Information Systems Research, 8(2), 125-150.

Chan, Y. E., Sabherwal, R., & Thatcher, J. B. (2006). Antecedents and Outcomes of Strategic IS Alignment: an Empirical Investigation. IEEE Transactions on Engineering Management, 53(1), 27-47.

Chen, Y., Wang, Y., Nevo, S., Jin, J., Wang, L., & Chow, W. S. (2014). IT Capability and Organizational Performance: the Roles of Business Process Agility and Environmental Factors. European Journal of Information Systems, 23(3), 326-342.

Croteau, A.-M., & Bergeron, F. (2001). An Information Technology Trilogy: Business Strategy, Technological Deployment and Organizational Performance. The Journal of Strategic Information Systems, 10(2), 77-99.

Ferdinand, A. (2002). Structural Equation Modeling in Management Research. UNDIP Press: Semarang.

Fink, L., & Neumann, S. (2018). Gaining Agility through IT Personnel Capabilities: the Mediating Role of IT Infrastructure Capabilities. Journal of the Association for Information Systems, 8(8), 440-462.

Ghasemaghaei, M., Hassanein, K., & Turel, O. (2017). Increasing Firm Agility through the Use of Data Analytics: the Role of Fit. Decision Support Systems, 101(9), 95-105.

Gill, A. Q., Smith, S., Beydoun, G., & Sugumaran, V. (2014). Agile Enterprise Architecture: a Case of a Cloud Technology-Enabled Government Enterprise Transformation. Proceedings. Pacific Asia Conference on Information Systems, PACIS 2014, January.

Grewal, R., & Tansuhaj, P. (2001). Building Organizational Capabilities for Managing Economic Crisis: the Role of Market Orientation and Strategic Flexibility. Journal of Marketing, 65(2), 67-80.

Hani, I. B., Deniz, S., & Carlsson, S. A. (2017). Enabling Organizational Agility through Self-Service Business Intelligence: the Case of a Digital Marketplace. Proceedings. 21st Pacific Asia Conference on Information Systems (PACIS). Malaysia.

He, Z. L., & Wong, P.-K. (2004). Exploration vs. Exploitation: an Empirical Test of the Ambidexterity Hypothesis. Organization Science, 15(4), 481-494.

Huang, P.-Y. Y., Pan, S. L., & Ouyang, T. H. (2014). Developing Information Processing Capability for Operational Agility: Implications from a Chinese Manufacturer. European Journal of Information Systems, 23(4), 462-480.

Jirawuttinaunt, S., & Ussahawanitchakit, P. (2011). Effects of Marketing Adaptation Strategy on Customer Response, Marketing Excellence and Marketing Performance of Food Product Business in Thailand. IJBS 11(1), 1-16.

Joshi, A. W., & Sharma, S. (2004). Customer Knowledge Development: Antecedents and Impact on New Product Performance. Journal of Marketing, 68(4), 47-59.

Judge, W. Q., & Miller, A. (1991). Antecedents and Outcomes of Decision Speed in Different Environmental Contexts. The Academy of Management Journal, 34(2), 449-463.

Kearns, G. S., & Sabherwal, R. (2006). Strategic Alignment between Business and Information Technology: a Knowledge-Based View of Behaviors, Outcome, and Consequences. Journal of Management Information Systems, 23(3), 129-162.

Khatir, V., & Mianrood, B. (2016). Comparative Study of Factors Affecting Organizational. Agility in Iran. Proceeding. International Congress on Technology-Engineering and Science, 09-10 Februari, Kuala Lumpur, Malaysia.

Kohli, A. K., & Jaworski, B. J. (1990). Market Orientation: the Construct, Research Propositions, and Managerial Implications. Journal of Marketing, 54(2), 1-18.

Lavie, D., & Rosenkopf, L. (2006). Balancing Exploration and Exploitation in Alliance Formation. Academy of Management Journal, 49(4), 797-818.

Lee, O. K., Sambamurthy, V., Lim, K. H., & Wei, K. K. (2015). How does IT Ambidexterity Impact Organizational Agility?. Information Systems Research, 26(2), 398-417.

Lowry, P. B., & Wilson, D. (2016). Creating Agile Organizations through IT: the Influence of Internal IT Service Perceptions on IT Service Quality and IT Agility. The Journal of Strategic Information Systems, 25(3), 211-226.

Lu, Y., & Ramamurthy, K. (2011). Understanding the Link between Information Technology Capability and Organizational Agility: an Empirical Examination. MIS Quarterly, 35(4), 931-954.

Nadkarni, S., & Narayanan, V. K. (2007). Strategic Schemas, Strategic Flexibility, and Firm Performance: the Moderating Role of Industry Clockspeed. Strategic Management Journal, 28(3), 243-270.

Nazir, S., & Pinsonneault, A. (2012). Journal of the Association for Information IT and Firm Agility: an Electronic Integration Perspective IT and Firm Agility: an Electronic Integration. Journal of the Association for Information Systems, 13(3), 150-171.

Nejatian, M., Zarei, M. H., Nejati, M., & Zanjirchi, S. M. (2018). A Hybrid Approach to Achieve Organizational Agility. Benchmarking: an International Journal, 25(1), 201-234.

Ngai, E. W. T., Chau, D. C. K., & Chan, T. L. A. (2011). Information Technology, Operational, and Management Competencies for Supply Chain Agility: Findings Fom Case Studies. The Journal of Strategic Information Systems, 20(3), 232-249.

Nohria, N., & Gulati, R. (1996). Is Slack Good or Bad for Innovation?. Academy of Management Journal, 39(5), 1245-1264.

Nurcholis, L. (2018). Effect of Marketing Strategy Adaptation on Knowledge Exploitability. Jurnal Aplikasi Manajemen, 16(3), 432-439.

Oh, W., & Pinsonneault, A. (2007). On the Assessment of the Strategic Value of Information Technologies: Conceptual and Analytical Approaches. MIS Quarterly, 31(2), 239-265.

Overby, E., Bharadwaj, A., & Sambamurthy, V. (2006). Enterprise Agility and the Enabling Role of Information Technology. European Journal of Information Systems, 15(2), 120-131.

Palmer, J. W., & Markus, M. L. (2000). The Performance Impacts of Quick Response and Strategic Alignment in Specialty Retailing. Information Systems Research, 3(3), 241-259.

Park, Y., Sawy, O., & Fiss, P. (2017). The Role of Business Intelligence and Communication Technologies in Organizational Agility: a Configurational Approach. Journal of the Association for Information Systems, 18(9), 648-686.

Queiroz, M., Tallon, P. P., Sharma, R., & Coltman, T. (2018). The Role of IT Application Orchestration Capability in Improving Agility and Performance. Journal of Strategic Information Systems, 27(1), 4-21.

Ravichandran, T. (2018). Exploring the Relationships between IT Competence, Innovation Capacity and Organizational Agility. Journal of Strategic Information Systems, 27(1), 22-42.

Richardson, S., Kettinger, W., Banks, M., & Quintana, Y. (2018). IT and Agility in the Social Enterprise: a Case Study of St. Jude Children’s Research Hospital’s “Cure4Kids†IT-Platform for International Outreach. Journal of the Association for Information Systems, 15(1), 1-32.

Roberts, N., & Grover, V. (2012). Leveraging Information Technology Infrastructure to Facilitate a Firm’s Customer Agility and Competitive Activity: an Empirical Investigation. Journal of Management Information Systems, 28(4), 231-270.

Sabherwal, R., & Chan, Y. E. (2001). Alignment between Business and IS Strategies: a Study of Prospectors, Analyzers, and Defenders. Information Systems Research, 12(1), 11-33.

Saha, N., Gregar, A., & Sáha, P. (2019). Organizational Agility and HRM Strategy: Do They Really Enhance Firms’ Competitiveness?. International Journal of Organizational Leadership, 6(3), 323-334.

Sambamurthy, V., Bharadwaj, A., & Grover, V. (2003). Shaping Agility through Digital Options: Reconceptualizing the Role of Information Technology in Contemporary Firms. MIS quarterly, 27(2), 237-263.

Santos-Vijande, M. L., López-Sánchez, J. Ã., & Trespalacios, J. A. (2012). How Organizational Learning Affects a Firm’s Flexibility, Competitive Strategy, and Performance. Journal of Business Research, 65(8), 1079-1089.

Stern, P., & Hammond, K. (2004). The Relationship between Customer Loyalty and Purchase Incidence. Marketing Letters, 15(1), 5-19.

Sutapa, S., Mulyana, M., & Wasitowati, W. (2017). The Role of Market Orientation, Creativity and Innovation in Creating Competitive Advantages and Creative Industry Performance. Jurnal Dinamika Manajemen, 8(2), 152-166.

Tallon, P. P. (2008). A Process-Oriented Perspective on the Alignment of Information Technology and Business Strategy. Journal of Management Information Systems, 24(3), 227-268.

Tallon., & Pinsonneault. (2011). Competing Perspectives on the Link between Strategic Information Technology Alignment and Organizational Agility: Insights from a Mediation Model. MIS Quarterly, 35(2), 463-486.

Tantong, P., Karande, K., Nair, A., & Singhapakdi, A. (2010). The Effect of Product Adaptation and Market Orientation on Export Performance: a Survey of Thai Managers. The Journal of Marketing Theory and Practice, 18(2), 155-170.

Teece, D., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509-533.

Thrassou, A., & Vrontis, D. (2006). A Small Services Firm Marketing Communications Model for SME-Dominated Environments. Journal of Marketing Communications, 12(3), 183-202.

Tiwana, A., & Kim, S. K. (2015). Discriminating IT Governance. Information Systems Research, 26(4), 656-674.

Tiwana, A., Konsynski, B., & Bush, A. A. (2010). Platform Evolution: Coevolution of Platform Architecture, Governance, and Environmental Dynamics. Information Systems Research, 21(4), 675-687.

Tsatsou, P., Elaluf-Calderwood, S., & Liebenau, J. (2010). Towards a Taxonomy for Regulatory Issues in a Digital Business Ecosystem in the EU. Journal of Information Technology, 25(3), 288-307.

van Oosterhout, M., Waarts, E., & van Hillegersberg, J. (2006). Change Factors Requiring Agility and Implications for IT. European Journal of Information Systems, 15(2), 132-145.

Vervest, P., Preiss, K., van Heck, E., & Pau, L.-F. (2004). The Emergence of Smart Business Networks. Journal of Information Technology, 19(4), 228-233.

Vrontis, D., Kogetsidis, H., & Stavrou, A. (2006). Strategic Marketing Planning for a Supplier of Liquid Food Packaging Products in Cyprus. Journal of Business and Industrial Marketing, 21(4), 250-261.

Worren, N., Moore, K., & Cardona, P. (2002). Modularity, Strategic Flexibility and Firm Performance: a Study of the Home Appliance Industry. Strategic Management Journal, 23(12), 1123-1140.

Yeung, P. K., & Lau, C. M. (2005). Competitive Actions and Firm Performance of Hotels in Hong Kong. International Journal of Hospitality Management, 24(4), 611-633.

Young-Ybarra, C., & Wiersema, M. (1999). Strategic Flexibility in Information Technology Alliances: the Influence of Transaction Cost Economics and Social Exchange Theory. Organization Science, 10(4), 439-459.

Yusof, F. M., & Aziz, R. A. (2008). Strategic Adaptation and the Value of Forecasts: the Development of a Conceptual Framework. Journal of Business Economics and Management, 9(2), 107-114.

Zahra, S. A., & Covin, J. (1993). Business Strategy, Technology Policy and Firm Performance. Strategic Management Journal., 14(6), 451-478.

Zahra, S. A., & George, G. (2002). Absorptive capacity: a Review, Reconceptualization, and Extension. Academy of Management Review, 27(2), 185-203.

Zhou, S., Qiao, Z., Du, Q., Wang, G. A., Fan, W., & Yan, X. (2018). Measuring Customer Agility from Online Reviews Using Big Data Text Analytics. Journal of Management Information Systems, 35(2), 510-539.

Zhou, X., Hanlon, C., Robertson, J., Spaaij, R., Westerbeek, H., Hossack, A., & Funk, D. C. (2018). Dress for Fit: an Exploration of Female Activewear Consumption. Sport Management Review, 21(4), 403-415.

Zitkiene, R., & Deksnys, M. (2018). Organizational Agility Conceptual Model. Montenegrin Journal of Economics, 14(2), 115-129.

View Counter: Abstract - 1174 and PDF - 673

Refbacks

  • There are currently no refbacks.


Bookmark and Share