How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and IT managers 
Management Information Systems Quarterly
, 39
(2) , 497-518. 2015.
Author(s): Shelly Ping-Ju Wu. Detmar W. Straub. Ting-Peng Liang.
Topics: Information systems strategy Business – IT alignment Digital leadership
Country: Taiwan
Objective and main results
This study investigates how organizational value is created through IT governance mechanisms and business-IT strategic alignment. It shows that IT governance can facilitate alignment between IT strategy and business strategy, and thereby lead to performance improvements.
Main results
- The study finds a significant linkage between IT governance mechanisms and strategic alignment, and between strategic alignment and organizational performance.
- The effect of IT governance mechanisms on organizational performance is fully mediated by strategic alignment.
Summary of practical implications
Alignment between IT strategy and business strategy can be achieved by implementing well-designed IT governance mechanisms. Placing CIOs on executive committees is an effective mechanism for promotion of IT/business alignment.
CIOs and top management teams should interact with each other and share domain knowledge. Structural governance mechanisms provide the institutionalized context for these parties to participate in the decision-making process.
Shared understanding and IS-business alignment can be promoted by direct reporting structures between the CIO and CEO.