The Role of Convergence in Information Systems and Business Planning

A key challenge to top management is the alignment of IS and business plans for the purpose of producing an IT-based competitive advantage. This study uses a well known communication theory to provide new insight into the impact of CEO and CIO planning participation on IS and business alignment via the convergence of views between the CEO and CIO regarding the current and future strategic impact of IT on the firm’s success. One hundred and nine matched pairs of questionnaire responses from CIOs and CEOs were collected using a postal survey. Results indicated that CIO participation in business planning predicted current convergence, and current convergence predicted the alignment of the IS plan with the business plan as well as the alignment of the business plan with the IS plan. Alignment of the IS plan with the business plan predicted key IS plan objectives whereas alignment of the business plan with the IS plan did not. Key IS plan objectives predicted the use of IT for competitive advantage. The paper contributes by confirming that convergence plays a mediating role between the participation of the CIO in business planning and the alignment of the IS plan with the business plan. It also contributes by underscoring the impact of key IS plan objectives on the use of IT for competitive advantage.

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