An analysis of the relationships among information systems design, strategy, and organizational performance using structural equation modeling
Abstract
Information systems design and strategy have been proposed as affecting organizational performance, both independently and in conjunction with each other. However, there is a lack of research addressing the performance impact of their congruence. Therefore, the purpose of this research is to examine the impact on organizational performance of the congruence, or coalignment, of information systems design and strategy.
This research employs structural equation modeling to examine two competing models. One model, identified as the direct effects model, proposes that information systems design and strategy directly and independently affect organizational performance. The second model, identified as the coalignment model, proposes that the congruence, or coalignment, between information systems design and strategy affects organizational performance.
Results of the research show coalignment to be a higher order construct with information systems design and strategy as its indicators. This coalignment positively affects organizational performance.