The Impact of Employees’ Perceptions of Strategic Alignment on Sustainability: An Empirical Investigation of Korean Firms

Abstract

Despite the increasing amount of research on the use of strategic alignment to ensure sustainability, Korean companies have been found to lack an understanding of the initiative that connects strategic alignment and organizational performance. We argue the need for role clarity and employee engagement as two motivational mechanisms for strategic alignment to achieve better organizational performance. The research model uses variables related to strategic alignment, role clarity (goal and process clarity), employee engagement, and organizational performance. The model was tested by surveying 244 participants in 74 Korean companies. The results of the structural model tested using the partial least squares regression reveal that strategic alignment is indirectly related to organizational performance through goal clarity and employee engagement. This study also clarifies the motivation of strategic alignment in terms of individuals (e.g., psychological stability of individual goals and actions) and organizations (e.g., high level of engagement toward the organization’s active support). Further research issues are also discussed.