Examining Cross-Domain Alignment: The Correlation of Business Strategy, IT Management, and IT Business Value

Prior research hardly investigates how externally focused competitive strategies can be bridged with internal IT processes. We aim to explore the relationship between five archetypical IT management profiles (ITMP) and four business strategy archetypes linked with six IT business value domains. Considering prior literature, we propose that each ITMP delivers unique sources of value, thus, contributes to specific IT business value domains. Furthermore, we assume that each business strategy archetype requires contributions to these domains. To test our hypotheses, we conducted a matched-pair study within manufacturing firms. Our findings indicate that IT business value domains link competitive strategy and IT management approaches. For instance, IT functions that act as Project Coordinator of IT-based activities, manage relationships between vendors and business units were found to contribute to firm's external integration. We present evidence for the significance of aligning externally focused strategies with internal IT management approaches.