The Influence of Entrepreneurial Action on Strategic Alignment in New Ventures

Introduction The alignment of IT strategy with business strategy has been among the top concerns of business leaders for several decades (Kappelman et al. 2014; Niederman et al. 1991). This interest from practitioners has stimulated researchers to produce a voluminous body of literature where definitions and dimensions of alignment have been proposed, measures and models have been developed, and antecedents and outcomes have been identified (Chan et al. 2007). One specific area of interest within strategic alignment research has been the study of how alignment develops and changes in an organization over time. Researchers have described stages of growth in how firms strategically use IT (Burn 1993), phases in the pursuit of alignment (Street 2006), and a model of punctuated equilibrium where extended periods of stability with evolutionary change are interrupted by short periods of rapid transformation with revolutionary change (Sabherwal et al. 2001b). In spite of this foregoing work, few if any have examined the genesis of strategic alignment and its related processes in new ventures. Some researchers have investigated the strategic role of IT in SMEs, an area of research closely related to new ventures (Bergeron et al. 2001; Bergeron et al. 2004; Cragg et al. 2002; Hussin et al. 2002; Levy et al. 2011; Raymond et al. 2009), others have discussed IT as a tool for innovation (Beckman et al. 2012a; Chen et al. 2010; Fichman et al. 2014), and still others have explored the role of the entrepreneur-leader in technology entrepreneurship (Beckman et al. 2012b). Nevertheless, strategic alignment in new ventures, and specifically the development of alignment from its very outset remains under investigated. . The purpose of this paper is to explore the manner in which strategic alignment begins and evolves in a new venture. New ventures are an area of active research interest within the broader community of business scholars. Researchers studying new ventures have observed that there are discernible differences in the way that entrepreneurs build and grow their businesses and have therefore constructed several

[1]  Kerry W. Ward,et al.  Improving validity and reliability in longitudinal case study timelines , 2012, Eur. J. Inf. Syst..

[2]  Jerome A. Katz,et al.  Properties of Emerging Organizations , 1988 .

[3]  R. G. Fichman,et al.  Digital Innovation as a Fundamental and Powerful Concept in the Information Systems Curriculum , 2014, MIS Q..

[4]  Allen C. Bluedorn,et al.  The relationship between corporate entrepreneurship and strategic management , 1999 .

[5]  Qing Hu,et al.  The impact of IT-business strategic alignment on firm performance in a developing country setting: exploring moderating roles of environmental uncertainty and strategic orientation , 2012, Eur. J. Inf. Syst..

[6]  Mark Casson,et al.  The Entrepreneur: An Economic Theory , 1982 .

[7]  Sirkka L. Jarvenpaa,et al.  Information technology alignment or “fit” in highly turbulent environments: the concept of flexibility , 1994, SIGCPR '94.

[8]  Hind Benbya,et al.  Using coevolutionary and complexity theories to improve IS alignment: a multi-level approach , 2006, J. Inf. Technol..

[9]  Donald R. Jones,et al.  Conceptualizing the Dynamic Strategic Alignment Competency , 2011, J. Assoc. Inf. Syst..

[10]  K. Eisenhardt,et al.  The Art of Continuous Change : Linking Complexity Theory and Time-Paced Evolution in Relentlessly Shifting Organizations , 1997 .

[11]  Louis Raymond,et al.  Ideal patterns of strategic alignment and business performance , 2004, Inf. Manag..

[12]  Suresh Kotha,et al.  Continuous “Morphing”: Competing Through Dynamic Capabilities, Form, and Function , 2001 .

[13]  Robert D. Galliers,et al.  Aligning in practice: from current cases to a new agenda , 2015, J. Inf. Technol..

[14]  B. Golden The past is the past--or is it? The use of retrospective accounts as indicators of past strategy. , 1992, Academy of Management journal. Academy of Management.

[15]  Varun Grover,et al.  Shaping Agility through Digital Options: Reconceptualizing the Role of Information Technology in Contemporary Firms , 2003, MIS Q..

[16]  Anne S. Miner,et al.  Improvising firms: bricolage, account giving and improvisational competencies in the founding process , 2003 .

[17]  Alan Serrano,et al.  Factors affecting IT and business alignment: a comparative study in SMEs and large organisations , 2009, J. Enterp. Inf. Manag..

[18]  Jason Bennett Thatcher,et al.  Looking Toward the Future of IT-Business Strategic Alignment through the Past: A Meta-Analysis , 2014, MIS Q..

[19]  Robert D. Galliers,et al.  A reflection on information systems strategizing: the role of power and everyday practices , 2017, Inf. Syst. J..

[20]  S. Shane,et al.  The Promise of Entrepreneurship as a Field of Research , 2000 .

[21]  Cynthia Mathis Beath,et al.  Linking Information Technology and Corporate Strategy: an Organizational View , 1986, ICIS.

[22]  Blaize Horner Reich,et al.  IT alignment: what have we learned? , 2007, J. Inf. Technol..

[23]  Jong-min Choe,et al.  The effect of environmental uncertainty and strategic applications of IS on a firm's performance , 2003, Inf. Manag..

[24]  Rajiv Sabherwal,et al.  Alignment Between Business and IS Strategies: A Study of Prospectors, Analyzers, and Defenders , 2001, Inf. Syst. Res..

[25]  Izak Benbasat,et al.  The Case Research Strategy in Studies of Information Systems , 1987, MIS Q..

[26]  Izak Benbasat,et al.  Measuring the Linkage Between Business and Information Technology Objectives , 1996, MIS Q..

[27]  Albert H. Segars,et al.  Strategic Information Systems Planning Success: An Investigation of the Construct and Its Measurement , 1998, MIS Q..

[28]  David S. Preston,et al.  Information Systems Strategy: Reconceptualization, Measurement, and Implications , 2010, MIS Q..

[29]  R. Yin Case Study Research: Design and Methods , 1984 .

[30]  D. P. Goyal,et al.  Striving towards strategic alignment in SMEs: an empirical analysis , 2012 .

[31]  K. Eisenhardt,et al.  Accelerating Adaptive Processes: Product Innovation in the Global Computer Industry , 1995 .

[32]  Jerry N. Luftman,et al.  Achieving and Sustaining Business-IT Alignment , 1999 .

[33]  Philip Powell,et al.  Contingent dynamics of IS strategic alignment in small and medium-sized enterprises , 2011, J. Syst. Inf. Technol..

[34]  G. Allison,et al.  Essence of Decision , 1971 .

[35]  Jason Bennett Thatcher,et al.  Antecedents and outcomes of strategic IS alignment: an empirical investigation , 2006, IEEE Transactions on Engineering Management.

[36]  Paul P. Tallon A Process-Oriented Perspective on the Alignment of Information Technology and Business Strategy , 2007, J. Manag. Inf. Syst..

[37]  Husnayati Hussin,et al.  IT alignment in small firms , 2002, Eur. J. Inf. Syst..

[38]  Varun Grover,et al.  An empirical evaluation of stages of strategic information systems planning: patterns of process design and effectiveness , 2005, Inf. Manag..

[39]  J. Tidd,et al.  Innovation and Entrepreneurship , 2007 .

[40]  Stephen K. Callaway,et al.  More bang for your buck: Small firms and the importance of aligned information technology capabilities and strategic flexibility , 2007 .

[41]  Aruna Chandra,et al.  Impact of owner's knowledge of information technology (IT) on strategic alignment and IT adoption in US small firms , 2012 .

[42]  Fred Niederman,et al.  Information Systems Management Issues for the 1990s , 1991, MIS Q..

[43]  Nicholas Dew,et al.  New market creation through transformation , 2005 .

[44]  J. Murray A CONCEPT OF ENTREPRENEURIAL STRATEGY , 1984 .

[45]  Paul P. Tallon,et al.  Competing Perspectives on the Link Between Strategic Information Technology Alignment and Organizational Agility: Insights from a Mediation Model , 2011, MIS Q..

[46]  Christine M. Beckman,et al.  The Role of the Entrepreneur in Technology Entrepreneurship , 2012 .

[47]  N. Ismail,et al.  Factors influencing the alignment of accounting information systems in small and medium sized Malaysian manufacturing firms , 2014 .

[48]  Izak Benbasat,et al.  Factors That Influence the Social Dimension of Alignment Between Business and Information Technology Objectives , 2000, MIS Q..

[49]  E. Daniel,et al.  Effectuation and home-based online business entrepreneurs , 2015 .

[50]  R E Miles,et al.  Organizational strategy, structure, and process. , 1978, Academy of management review. Academy of Management.

[51]  L. Lefebvre,et al.  COMPUTERIZATION OF SMALL FIRMS: A STUDY OF THE PERCEPTIONS AND EXPECTATIONS OF MANAGERS , 1988 .

[52]  Nick Rackoff,et al.  SIM Competition Paper: Information Systems for Competitive Advantage: Implemenation of a Planning Process , 1985, MIS Q..

[53]  Koenraad Debackere,et al.  Simultaneous experimentation as a learning strategy: Business model development under uncertainty—Relevance in times of COVID ‐19 and beyond , 2013, Strategic Entrepreneurship Journal.

[54]  Isabelle Walsh,et al.  Is SAM still alive? A bibliometric and interpretive mapping of the strategic alignment research field , 2016, J. Strateg. Inf. Syst..

[55]  John C. Henderson,et al.  Strategic Alignment: Leveraging Information Technology for Transforming Organizations , 1999, IBM Syst. J..

[56]  Paul A. Pavlou,et al.  The 'Third Hand': IT-Enabled Competitive Advantage in Turbulence Through Improvisational Capabilities , 2009, Inf. Syst. Res..

[57]  Magnus Gulbrandsen,et al.  Partner Selection for Open Innovation , 2013 .

[58]  J. Barney,et al.  Discovery and Creation: Alternative Theories of Entrepreneurial Action , 2007 .

[59]  Henry Mintzberg,et al.  Of strategies, deliberate and emergent , 1985, Strategic Management Journal.

[60]  Israel M. Kirzner Competition and Entrepreneurship , 1973 .

[61]  Alain Yee-Loong Chong,et al.  Does Employee Alignment Affect Business-it Alignment? an Empirical Analysis , 2011, J. Comput. Inf. Syst..

[62]  L. Raymond,et al.  FIT IN STRATEGIC INFORMATION TECHNOLOGY MANAGEMENT RESEARCH: AN EMPIRICAL COMPARISON OF PERSPECTIVES , 2001 .

[63]  Line Dubé,et al.  Rigor in Information Systems Positivist Case Research: Current Practices , 2003, MIS Q..

[64]  Husnayati Hussin,et al.  IT alignment and firm performance in small manufacturing firms , 2002, J. Strateg. Inf. Syst..

[65]  J. Barney Firm Resources and Sustained Competitive Advantage , 1991 .

[66]  Heather A. Smith,et al.  Making IT Happen: Critical Issues in IT Management , 2003 .

[67]  S. Shane,et al.  Does business planning facilitate the development of new ventures , 2003 .

[68]  Fred Niederman,et al.  Integrating the IS functions after mergers and acquisitions: Analyzing business-IT alignment , 2014, J. Strateg. Inf. Syst..

[69]  Leon A. Kappelman,et al.  The 2014 SIM IT Key Issues and Trends Study , 2014, MIS Q. Executive.

[70]  Robert D. Hisrich,et al.  Entrepreneurship: Starting, Developing, and Managing a New Enterprise , 1989 .

[71]  M. Lynne Markus,et al.  The Performance Impacts of Quick Response and Strategic Alignment in Specialty Retailing , 2000, Inf. Syst. Res..

[72]  Sue Newell,et al.  Managing knowledge and managing knowledge work: what we know and what the future holds , 2015, J. Inf. Technol..

[73]  Sonali K. Shah,et al.  The Accidental Entrepreneur: The Emergent and Collective Process of User Entrepreneurship , 2007 .

[74]  William B. Gartner,et al.  Innovation and Entrepreneurship , 1985 .

[75]  Rajiv Sabherwal,et al.  The Dynamics of Alignment: Insights from a Punctuated Equilibrium Model , 2001 .

[76]  B. Oviatt,et al.  Entrepreneurial Intensity: Sustainable Advantages for Individuals, Organizations, and Societies , 1999 .

[77]  Albert L. Lederer,et al.  Coordination of Information Systems Plans with Business Plans , 1989, J. Manag. Inf. Syst..

[78]  Thompson S. H. Teo,et al.  Critical success factors in the alignment of IS plans with business plans , 1999 .

[79]  Jean-Jacques Laffont,et al.  A General Equilibrium Entrepreneurial Theory of Firm Formation Based on Risk Aversion , 1979, Journal of Political Economy.

[80]  R. Hirschheim,et al.  Detours in the Path toward Strategic Information Systems Alignment , 2001 .

[81]  Carl Stephen Guynes,et al.  Information Technology Alignment Planning - a case study , 2005, Inf. Manag..

[82]  Louis Raymond,et al.  Manufacturing Strategy and Business Strategy in Medium-Sized Enterprises: Performance Effects of Strategic Alignment , 2009, IEEE Transactions on Engineering Management.

[83]  William B. Gartner,et al.  A Conceptual Framework for Describing the Phenomenon of New Venture Creation , 1985 .

[84]  Louis Raymond,et al.  Enabling the strategic development of SMEs through advanced manufacturing systems: A configurational perspective , 2006, Ind. Manag. Data Syst..

[85]  Tai-Young Kim,et al.  Shifting Gears, Shifting Niches: Organizational Inertia and Change in the Evolution of the U.S. Automobile Industry, 1885-1981 , 2003, Organ. Sci..

[86]  H. Russell Johnston,et al.  Developing Capabilities to Use Information Strategically , 1988, MIS Q..

[87]  Henry Mintzberg,et al.  Reflecting on the Strategy Process , 1999 .

[88]  Nathan Bennett,et al.  Employee Propensity to Withhold Effort: A Conceptual Model to Intersect Three Avenues of Research , 1993 .

[89]  N. Nummela,et al.  Strategic Decision-Making of a Born Global: A Comparative Study From Three Small Open Economies , 2014 .

[90]  Curba Morris Lampert,et al.  Entrepreneurship in the large corporation: a longitudinal study of how established firms create breakthrough inventions , 2001 .

[91]  Janice M. Burn Information systems strategies and the management of organizational change – a strategic alignment model , 1993, J. Inf. Technol..

[92]  Grover S. Kearns,et al.  The impact of industry contextual factors on IT focus and the use of IT for competitive advantage , 2004, Inf. Manag..

[93]  S. Zahra A theory of international new ventures: a decade of research , 2005 .

[94]  Joe Peppard,et al.  Information systems strategy as practice: Micro strategy and strategizing for IS , 2014, J. Strateg. Inf. Syst..

[95]  T. Baker,et al.  Creating Something from Nothing: Resource Construction through Entrepreneurial Bricolage , 2005 .

[96]  S. Sarasvathy Causation and Effectuation: Toward a Theoretical Shift from Economic Inevitability to Entrepreneurial Contingency , 2001 .

[97]  Jason Bennett Thatcher,et al.  Six types of IT-business strategic alignment: an investigation of the constructs and their measurement , 2015, Eur. J. Inf. Syst..

[98]  J. Schumpeter The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle , 1934 .

[99]  G. Fisher Effectuation, Causation, and Bricolage: A Behavioral Comparison of Emerging Theories in Entrepreneurship Research , 2012 .