Exploring the Impact of Business and Information Technology Strategic Alignment on Organizational Performance: The Case of Ethiopian Revenue and Custom Authority
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Date
2020-09-03
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Addis Ababa University
Abstract
We are now on the fifth generation (5G) world; every human activity interconnected with tremendous technological avenues. Here we can say informational systems play a vital role on the behalf of bridging the gap between business and IT world via internal integration and external adaptation. When we see the public organizations in Ethiopia, almost all have their own business strategies (like: vision, missions, 10 year’s plan). But the fact on the ground indicated that, the alignment of business and IT strategies remain a challenging issue. The aim of this study is to assess the current statuses of business and information technology strategic alignment in public organizations and recommend solutions that increase organizational capability to utilize IT resources through BITA. The study used mixed modal research approach, the qualitative (like: interview, observation) and survey research method. For data analysis descriptive analysis and regression analysis were used. The main finding of this study is that, there is a documented IT and business strategy in ERCA but a strong strategic relationship is required. The guideline was developed based on the research finding result; it contains four variables which are: government policies, business strategy, IT strategy, business strategy and organizational performance. Government of the country is defining a sets of policies and give a direction to organizations to implement the governmental policies, the public organizations are defining their business strategy by considering or with in the domain of governmental policies and announce the strategies to sub working units (E.g. human resource, IT, finance department) of the organization, the information technology department (in the case of ERCA managements of information system (MIS) department) define the set of strategies to enable the objectives/ goals of ERCA by integrating the business needs and IT solutions, the levels of integration/alignment between organizational needs and IT solutions matter the organizational performance. In ERCA case, the research findings indicates that, there is a good level (according to Likert scale, level-4) of alignment between business and IT strategies were presented. Therefore, keeping a strong business and information technology strategic alignment plays an important and holistic role for the achievements of organizational goal. An organizations have the more business and IT strategy the more strategic alignment as well as the more organizational performance is performed. Furthermore, the survey on the interrelationship/alignment between business and information technology strategies should continue in multiple public organizations.
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Strategy, Business Strategy, IT Strategy, Strategic Alignment, Government, Organizational Performance