The impact of triadic strategic alignment on organisational performance in Yemen

Abstract

To survive and succeed in the very competitive business environment, firms should have a clear business strategy supported by appropriate information technology (IT) and marketing strategies. Whilst many prior studies argue that strategic alignment between, for example, business strategy and IT strategy generally enhances organisational performance, strategic alignment including multiple factors has received little attention and strategic orientation of firms is rarely considered. This research, drawing on configurational theory and strategic management literature, aims to understand the performance impact of triadic strategic alignment between business, IT, and marketing strategies based on strategic orientation of firms. A number of hypotheses are proposed to examine the relationship between triadic strategic alignment and organisational performance through the use of structural equation modelling, and to identify generic types of triadic strategic alignment. The hypotheses are tested through MANOVA using data collected in a questionnaire survey of 242 managers in Yemen. The findings indicate that (1) there is an ideal triadic strategic alignment for prospectors and defenders; (2) triadic strategic alignment has a positive impact on organisational performance; and (3) triadic strategic alignment provides a better indication of the nature and performance impact of strategic alignment. Follow-up interviews were also conducted to support the arguments and to clarify how strategies should be aligned. This research also contributes to managers’ knowledge and understanding by suggesting how a firm should coherently align its strategies to improve organisational performance.