1. ¹John Molson School of Business, Concordia University, Montreal, Québec, Canada
2. ²Département des sciences de la gestion, Université du Québec à Trois-Rivières, Trois-Rivières, Québec, Canada

Correspondence: A-M Croteau, John Molson School of Business, Concordia University, 1455 de Maisonneuve West, GM 209-13 Montreal, Quebec, Canada H3G IM8. Tel: +1514 848-2424 X2983; Fax: +1514 848-2824. E-mail: croteau@alcor.concordia.ca

^†The authors would like to thank Mrs. Simona Solomon and Dr. François Bergeron for their help in conducting this study.

Abstract

This study empirically evaluates the business performance outcomes of aligning an organization's information technology (IT) competencies with its strategic competencies. Strategic competencies include components such as shared vision, cooperation, empowerment, and innovation, whereas IT competencies comprise connectivity, flexibility, and technological scanning. Top managers from 104 organizations completed a questionnaire analyzed with EQS, a structural equation modeling tool. Based on a covariation approach to alignment, results confirm that strategic and IT competencies alignment significantly enhances perceived business performance.