152 Conclusion

7.3 Observations and Personal Opinions

Based on our models which were developed, validated and investigated in this study, and the
statistically significant relationships among the studied factors, we formulate the following four
observations and personal opinions.

(1) Literature has proposed that SIW has positive improvement effects on several levels (public,
organizational, employee, and financial). Our answer to RQ1 states that ITBSA has a positive
effect on SIW. This observation emphasizes that managers need to make this activity (strategic
alignment) a survival duty as opposed to a luxury option. Moreover, we opine that for our
departmental level of analysis it is important to practice strategic alignment at all organizational
levels including the departmental level.

(2) Given the valid mediating effect of SIW on the relationship between ITBSA and performance,
managers should refrain from the harmful competition on innovative resources. Rather, in our
opinion, they should (a) establish an incentive program that ranks rewards of innovative activities
on collective performance across departments, and (b) emphasize the importance of focusing on
the organizational strategic alignment efforts to include (on the business side) strategic objectives
stimulating departmental collaborative actions on social innovation at work (c) spend efforts to
establish an effective and formal network society within the organization. Such organizational and
social structures will enhance innovation-related collaborative activities across functional
departments, leading to an enhanced and sustainable performance levels. On the IT side of the
equation, those strategies may include, for example, an objective stating “enhancing
interdepartmental innovation-related collaborative IT networks” (such as the establishment of
innovative ideas-hunting portals and innovation collaboration platforms).
(3) The ability of this research to identify the EGIT as a moderator for the relationship between the
ITBSA and the departmental innovation, allows IT managers and business managers to focus on
efforts and activities which may lead to efficient use of IT resources. For example, up to now
managers needed to monitor and benchmark the level of IT investment and become satisfied if a
joint committee of a business unit and IT has formed a joint strategy for the next period. This
research has shown that to capitalize on IT investments through effective interdepartmental
collaboration on SIW, managers need to develop and establish effective IT governance structures
and processes. From these observations, we see that the highly-recommended structures include
the establishment of IT strategy committee at the level of Board of Directors, IT projects and
governance function steering committees, and the integration of IT governance tasks into the
From IT Business Strategic Alignment to Performance 153

general roles and responsibilities. While an example of effective IT processes might include the
establishment of a formal IT governance framework, a formal process to define and measure IT
strategic plans, and
prioritizing IT investments in which both IT and business strategies are involved.

(4) Social performance and the consequent Corporate Sustainability performance is a vital factor for
organizational survival. Our research has emphasized the importance of strategic alignment and
the implementation of proper EGIT structures and process. A consequence of such
implementation will implicitly support higher levels of corporate sustainability. For example,
incorporating social responsibility measures (such as pollution monitoring and control) into the
corporate business strategy, aligning the strategy with IT, and implementing an effective IT
portfolio management process by which those pollution reduction projects get priority, will
improve both social performance and sustainability.

7.4 Limitations of the Study

This study has four limitations that could be overcome in future research. Those limitations are
summarized below: (1) restricted generalizability, (2) the assumptions of model modification, and (3)
geographical limitations (4) employee layers limitations

(1) Restricted generalizability.

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The current research has a prevailing exploratory/descriptive nature. The proposed causal
relationships have not been “confirmed” through experimental theory methods. Therefore, the
outputs of the model cannot formally be considered predictive. Moreover, this research has used
one type of questionnaires and one method of data collection for ITBSA, SIW and performance.
There are several other instruments for the identification of the ITBSA, SIW, and performance
constructs. So, the limitation is in the restricted generalizability. For further research, we suggest
confirming the relationships utilizing different data instruments to conclude more generalizable
results.

(2) The assumptions of model modification

Our proposed models and the methodology used (cf. Baron & Kenny, 1986) to test the mediating
and moderating relationships have shown a specific trend in the relations between ITBSA, EGIT,
SIW, and performance that is valid under the assumptions described in subsection 6.3.2 (the
model modification). This design has put a stamp on the analysis and the way to draw conclusions.
154 Conclusion

For further research, we propose a re-confirmation of the results by using alternative techniques
to test the mediation and moderation relationships.

(3) Geographical limitations

Although our aim was to allow for the most generalizable results through (a) involving
multinational organizations in the data collection process, and (b) designing the conceptual model
from components well-grounded in previous theories in the literature, it is a reality that all the
collected data was from Yemen branches of those multinationals. This might have imposed
certain level of a culture and/or country bias in the responses.

(4) Employee-level limitations

The type of the requested information for this study requires respondents with a senior level
management experience (at the minimum, on the level of heads of departments) from both IT and
business sides. Therefore, we have only targeted high-level executives and their direct assistants.
We did not involve ordinary or medium-level employees in the studied organizations. This fact
might impose a restriction on our understanding of the, sometimes contradictory, views of
different layers of employees on issues such as willingness of collaboration on innovation or
effects of various factors (structures and processes) on production flexibility. Nevertheless, we
feel this compromise was inevitable due to the nature of the required information.

7.5 Future Research

For future research, we suggest the following five lines of investigation: (l) larger variety of
thematics, (2) deepen the study of the interaction level, (3) using different techniques, and (4)
inclusion of more variables in the model, and (5) involve multiple layers of employees.

(1) Larger variety of thematics

Exploring different aspects (thematic) of Social Innovation at work such as, education,
administrative capacity building, and social policies. Moreover, variety of thematics could be
explored in combination with a specific EGIT component. For example, emphasizing capacity
building by implementing EGIT processes. They should ensure and monitor objectives and results
of the capacity building activities and projects.
From IT Business Strategic Alignment to Performance 155

(2) Deepen the study of the interaction level

A more in-depth study could be performed by studying the interaction of the components of the
EGIT when acting as moderators.

(3) Using different techniques of analysis

As mentioned in the thesis, ITBSA is an ambiguous topic. Therefore, we suggest (a) to use a
different variant of the data collection tool (for example, to explore a different variant of IT
Business alignment such as the Social Alignment concept), and (b) to validate our results by
examining different techniques of testing the moderator and mediator relationships. (c) Involve a
causality “confirmation” technique which will allow the model to become more suitable for
predictive and normative applications.

(4) Inclusion of more variables in the model

Some of our empirical results of the final moderated mediation model were at “borderline” values.
This might suggest that including other variables (not in the model) as moderators and/or
mediators along the path from IT investments to performance might improve the validity and
predictability of the model. Such variables may include (a) the investigation of the recent and
under-researched concept of digital business strategies (DBS) as proposed by Kahre et al. (2017).
They propose going beyond “alignment” and considering the IT and business strategies as one
entity. (b) Involving a factor of the “local culture”in the study might benefit the model fit, as well
as, improving the explanatory power of the model. (c) Operationalization of the performance

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construct is a complicated issue. Inevitably, the model explanatory power will benefit from the
inclusion of other factors of performance such as Corporate Sustainibility. Those factors will
broaden the scope of performance from the cost/production aspects into the more sustainable form
of performance.

(5) Involve multiple layers of employees

We have mentioned that one of the limitations of this study that it only involved senior level
managers in the data collection process. We recommend to design future research in a form which
invovles multiple layers of employees. The possible contradicting views of employees of various
levels (mainly on the issue of collaboration on social innovation) might add to the explanatory
power of the results.