Maximizing IT Investment Returns: Strategic Alignment of Information Technology towards Corporate Performances

Mohammad Alryalat¹, Richmond Adebiaye^2, and Haroun Alryalat³

¹Faculty of Business, Assistant Professor, Al-Balqa Applied University, Salt, The Hashemite Kingdom of Jordan

²Information Systems, College of Business and Technology, Parker University, Dallas Tx, United States

³College of Information Technology, Dean of IT College, Ajman University, Ajman UAE

Cite this paper

Mohammad Alryalat, Richmond Adebiaye and Haroun Alryalat. Maximizing IT Investment Returns: Strategic Alignment of Information Technology towards Corporate Performances. American Journal of Applied Mathematics and Statistics. 2017; 5(2):72-79. doi: 10.12691/AJAMS-5-2-5

Abstract

Information technology (IT) investment and aligning methodologies require thorough understanding of analyses on different parallel present values and strong internal rates of return. E-commerce has given a new dimension to IT investing that elevates the role of strong IT performance as a driver of corporate strategy. Stakeholders concerned with maximizing IT return on investment (ROI) recognize the importance of central, comprehensive information resources to effective strategic business planning. Alignment of corporate and IT strategies is now a vital element of business success. To empirically support this conclusion, this study measures the relationship between strategic alignment of IT investment returns and corporate performance. A Descriptive research design using survey methodology was employed. The study included analyses of variable values involving stakeholders in banks, such as new customers and employees. A Simple Percentage Method, chi-square tests, Tables and weighted average were used to analyze data of at least five (5) banks in Ajman Emirates of UAE to determine the degree of alignment and its impact on the two strategic dimensions. A binary logistic regression analysis using Chan¡¯s STROIS model incorporated with Venkatraman¡¯s STROBE model was proposed to collect survey data and determine the extent of the strategic alignment. The research results provide empirical evidence that supports the hypothesis that closer alignment between corporate and IT strategies leads to increased IT ROI and improved corporate performance. This relationship holds true for all firms regardless of strategic intent for IT. The study also shows a positive correlation between early adoption of newly emergent technologies and business competitive advantage which leads to positive conclusions that strategic competition is imperative towards corporate performances.

Keywords

strategic alignment, corporate performance, IT investment returns, competitive advantage

Copyright

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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