Effect of IT Alignment on Employee Performance and the Operating Role of Operating Environment
Journal of Global Economics, Management and Business Research, Volume 15, Issue 3,
The thesis was about the information technology alignment and employee performance in private service sector a case of Umeme Uganda limited. The study set out to: examine the IT Alignment practices in Umeme (U) Limited; to analyses the relationship between IT Alignment and employee performance; and to examine the moderating role of the operating environment on the relationship between IT Alignment and employee performance. The study was cross-sectional in nature, using both qualitative and quantitative approaches. Data was collected using self-administered questionnaires, and interviews with top management of Umeme limited central Uganda. Out of a population of 290, the study targeted a sample size of 165 respondents. The study applied Statistical Programmed for Social Scientists (SPSS) to test all four hypotheses. The results were presented as descriptive statistics and inferential statistics specifically correlation, regression analysis and hierarchical regression analysis models. The study confirmed a positive significant predictor relationship between information technology alignment and employee performance in Umeme this was done by Exploratory Factor Analysis (EFA).
The moderating role of the operating environment on the relationship between IT Alignment and employee performance at Umeme (U) Limited Central Uganda using a hierarchical regression analysis where interaction term (ITA*OP) appeared a significant predictor of employee performance The study designed a model, the Information Technology Alignment Innovative Preference Model (ITAIP) to build capacities and conduct research activities that would result in long-term and sustainable improvements in employee performance in private service sector. The study concluded that since ITA influence employee performance, the management of Umeme in support of IT needs to build a dynamic ITAIP, that will enable them cope with continuous improvement for greater efficacy and increased productivity as protocols are more strictly followed when orienting new employees. The study suggests that in order to build and install new IT governance the firm needs a detailed knowledge of how to improve efficiency, Costs optimization, Collaboration, collective decision, commitment, time management, creativity and digital work to release new services to customers, Transformational of ITA and improve the overall quality of the IT services provided in UMEME limited Uganda.
Purpose: The purpose of this study was to empirically establish the relationship between IT alignment practices and employee performance in the Private Service Sector particularly in Umeme Limited.
Design/methodology/approach: The study took a cross-sectional descriptive and analytical design. Out of a sample size of 165 employees, a total of 165 usable questionnaires were identified implying a response rate of 100%. The paper applied Statistical Programme for Social Scientists (SPSS) to test four hypotheses. The results are presented in terms of correlation and simple regression analysis models.
Findings: Results indicate that of the four hypotheses developed in literature review, three were positive and significant predictors of employee performance. IT governance, IT implementation and IT investment were found to be significant positive precursors of employee performance. The authors did not test the Integration of IT activities – employee performance association as Integration of IT activities was eliminated during Exploratory Factor Analysis.
Practical implications: This study is relevant and useful to private service entities as it provides them with a blue print on how to implement IT alignment practices with the aim of improving employee performance. To policy makers at National level, the study outcomes will be helpful in collecting, analyzing, and disseminating economic data that will serve private decision makers at all levels, on fiscal and monetary policy, business finance and investment strategy, and personal household economic matters.
Originality/value: This study demonstrates that the proper implementation of IT alignment practices leads to improvements in employee performance in terms of collaboration, collective decision making, commitment, time management, creativity and digital work within the workplace.
- IT Alignment practices
- employee performance
- operating environment
How to Cite
Luftman J, Ben-Zvi T. Key issues for IT executives 2011: Cautious optimism in uncertain economic times. MIS Quarterly Executive. 2011;10(4):203–212.
Hirschheim R, Sabherwal R. Detours in the path toward strategic information systems alignment. California Management Review; 2001. Available:https://doi.org/10.2307/41166112
Tallon Paul P, Kraemer Kenneth L. Investigating the relationship between strategic alignment and it business value, Proceedings of the European Conference on IT Evaluation, September 8-Dublin; 2000.
Henderson JC, Venkat Venkatraman N. Strategic alignment: Leveraging information technology for transforming organizations, IBM Systems Journal. 1993;32(1):4-16.
Smaczny T. Is an alignment between business and information technology the appropriate paradigm to manage IT in today’s organizations? Management Decision. 2001;39(10):797-802.
Van Grembergen W, De Haes S, Moons J. IT Governance: Linking business goals to IT goals and COBIT processes. Information Systems Control Journal. 2017;4(12):24-75.
Rafael A, Rúben P, Miguel S. IT governance mechanisms: A literature review. In Proc. 4th International Conference; IESS 2013.
Mueller L, Magee P, Marounek P, Phillipson A. IT governance approach: Business performance through IT execution. IBM Red Books; 2008.
Evans P, Wurster T. Strategy and the New economics of Information. Harvard Business Review. 2018;70-82.
Scott MS. The Corporation of the 1990s: Information technology and organizational transformation. New York: Oxford University Press; 2017.
Mano RS. Information technology, adaption and innovation in nonprofit human service organizations. Journal of Technology in Human Services. 2019; 27(3):227-234.
Gretton P, Gali J, Parham D. Uptake and Impacts of ICT in the Australian Economy: Evidence from Aggregate, Sectoral and Firm Levels. Paper presented at OECD Workshop on ICT and Business Performance, Productivity Commission, Canberra; 2016.
Menon NM, Lee B, Eldenburg L. Productivity of information systems in the healthcare industry. Inform. Systems Res. 2018;11(1):83–92.
Loveman GW. An assessment of the productivity impact of information technologies. Working Paper, Department of Economics, Massachusetts Institute of Technology, Cambridge, MA; 2008.
Clemons EK, MC Row M. McKesson drug company: A case study of economost-a strategic information system. Management Information Systems. 2020;5(1):36-50.
Bresnahan T. Measuring the spillovers from technical advance: Mainframe computers in financial services American economic rev. 2019;76(4):742-755.
Gerow J, Thatcher JB, Grover V, Roth P. Looking toward the future of it–information technology alignment through the past: A meta-analysis. MIS Quarterly. 2014;38 (4):1159-1185.
De Toni A. Tonchia S. Performance measurement systems: Models, characteristics and measures. International Journal of Operations & Production Management. 2011;21(1):46-70.
Hair JF, Anderson RE, Tatham RL, Black WC. Multivariate data analysis, 5th Edition, Prentice-Hall, Englewood Cliffs, NJ; 1998.
El Mekawy M, Rusu L, Ahmed N. Business and IT alignment: An evaluation of strategic alignment models. Communications in Computer and Information Science. 2009;49(3):447-455.
Grant GG. Strategic alignment and enterprise systems implementation: The case of Metalco. Journal of Information Technology; 2003. Available:https://doi.org/10.1080/0268396032000122132
Chung SH, Rainer J, Lewis BR. The Impact of Information Technology Infrastructure Flexibility on Strategic Alignment and Application Implementations. Communications of the Association for Information Systems. 2003; 2(6):227–253. Available:https://doi.org/10.17705/1cais.01111
Shin E, Dow K, Grover. A reexamination of IT investment and the market value of the firm an event study methodology. Information Systems Research. 2011; 12(4):1-10.
Harmon P. The scope and evolution of business process management. In Handbook on Business Process Management 1: Introduction, Methods, and Information Systems; 2015. Available:https://doi.org/10.1007/978-3-642-45100-3_3
Cooper R, Schindler S. Business research methods. The McGraw-Hill/Irwin series operations and decision sciences, Edition8 illustrated Publisher McGraw-Hill School Education Group; 2003.
Sekaran U, Bougie R. Research methods for business: A skill buildingapproach (5th ed.). Chichester, West Sussex: John Wiley & Sons, Inc; 2010.
Dos Santos BL. The impact of Information Technology investment announcements on the market value of the firm. Information Systems Research. 2013;1-23.
Abstract View: 25 times
PDF Download: 3 times