Comparing Strategic IT Alignment versus Process IT Alignment in SMEs

Abstract

Recently researchers have begun to suggest that the study of IT alignment in SMEs should be based on organizational processes rather than on strategy. This research investigated both approaches in a comparative exploratory study of 38 SMEs in Chile and Colombia. Regression was used to compare both types of alignment against IT success.

The findings did not show significant differences between strategic IT alignment and process-level alignment although the strategic alignment approach better explained the variability of IT success (35.8%) than the process approach (18.7%). This contradicts the findings of recent research which has suggested that alignment models based on SME processes better explain IT success than models based on the company's strategy. Unexpectedly we also found that there was a very high correlation between both types of alignment (0.810). Results showed that strategic alignment could impact the relationship between Process-level alignment and IT success. Our conclusion is that in spite of the fact that few SMEs are involved with extensive and formal long-term planning, there often seems to be an implicit SME strategy that shapes the way that IT is used on processes. Despite the exploratory nature of this study, the unexpected findings may encourage other researchers to validate and deepen the understanding of our conclusions.