Strategizing Information Systems: An Empirical Analysis of IT Alignment and Success in SMEs

Abstract

IT investment is a crucial issue as it does not only influence the performance in Small-Medium Enterprises (SMEs) but it also helps executives to align business strategy with organizational performance. Admittedly, though, there is ineffective use of Information Systems (IS) due to a lack of strategic planning and of formal processes resulting in executives’ failure to develop IS plans and achieve long-term sustainability. Therefore, the purpose of this paper is to examine the phases of Strategic Information Systems Planning (SISP) process that contribute to a greater extent of success so that guidelines regarding the implementation of the process in SMEs can be provided. Data was collected by 160 IS executives in Greek SMEs during February and May 2017. Multivariate Regression Analysis was applied on the detailed items of the SISP process and success constructs. The results of this survey present that managers should be aware of the strategic use of IS planning so as to increase competitive advantage. Senior executives should choose the appropriate IT infrastructure (related to their business strategy and organizational structure), so as to align business strategy with organizational structure. The findings of this paper could help IS executives concentrate their efforts on business objectives and recognize the great value of the planning process on their business.