Moderating Effects of Human Factors on IT-Business Alignment and IT Effectiveness in Modern Firms

Information technology (IT) emerges as an essential asset of modern firms’ competitive advantage, because it connects all business functions and supports managerial decision processes – both essential conditions for the attainment of the organization agility level. However, many modern firms experience difficulties on attaining its competitive edge, mainly because of a deficient IT- Business managerial role that, either deliberately or involuntarily, ignores the moderating effects of human factors – social determinants that are common elements to all hierarchy levels, of every business unit, within any modern firm. This work emphasizes the importance studying the IT-Business management function, as the organization’s main trigger for the attainment of the IT- Business Competitive Advantage, through an appropriate management of the moderating effects of human factors. This research paper also proposes a business conceptual model – “The Five-Level Triad of IT-Business Competitive Advantage” – which predicts the achievement of a modern firm IT-Business Competitive Advantage, through the advancement of five progress levels – IT-Business Managerial Role Efficiency, Employee Alignment, IT-Business Alignment, IT Effectiveness, and Firm’s Agility. The rationale of the model is supplemented by the referenced literature and the application of a measuring instrument, which assists in the examination of the alignment maturity level, between IT and Business organizational objectives. The model acts as a guide to any modern firm IT-Business managerial function, which aims for the successful design of an effective IT strategy, on the road to the conquering of the IT-Business competitive advantage.