Factors affecting IT and business alignment: A comparative study in SMEs and large organisations

Purpose - There are significant differences in terms of resources and expertise available between small and medium enterprises and large organisations. These differences may be significant for assessing and attaining alignment between IT (information technology) and business strategies. Thus this paper aims primarily to identify whether the differences between small, medium and large enterprises have an impact on the way they perceive strategic alignment. Design/methodology/approach - Based on data collected from 104 participants, five attributes are ranked for each of the following alignment factors: communication, competency/value measurement, governance, partnership, architecture and scope, and skills. This paper reviews and compares their relevance according to organisational size (SMEs and large organisations) and planning integration strategies (independent, sequential and simultaneous). Findings - The results from this survey suggest that, when ranking these factors, there are not significant differences among SME and large organisations. It was found, however, that the ranking of these factors has a positive correlation with the degree of IT/business planning integration applied in the organisation. Research limitations/implications - This study contributes to an understanding of the complex dynamic of aligning IT with business objectives and the implications for SMEs where few models have been tested. The results suggest that SMEs and large organisations perceived alignment in a similar way, however, there are significant differences in the way SMEs and large organisations implement their planning integrations strategies. Practical implications - Although current studies in alignment have not explored in much detail the differences between large and small organisations most of the theories around alignment can be applied to small and medium organisations with more confidence. Additionally, the analysis strongly suggests that companies following a simultaneous planning integration can improve the chances to make better use of IT, and thus attain better levels of alignment. Originality/value - This study contributes towards the study of alignment in SMEs, which is currently not very much explored. It also raises awareness about the importance of developing IT and business strategies together. © 2009 Emerald Group Publishing Limited. All rights reserved.