An Integrative Model Linking IT-Business Strategic Alignment and Firm Performance: The Mediating Role of Pursuing Innovation and Knowledge Management Strategies

While researchers have encouraged more research on the causal chains between IT investments and firm performance, results of empirical studies have been non-conclusive. This is partly due to the exclusion of IT-business strategic alignment. Further, scholars have continuously called for research that addresses the antecedent factors that lead to the alignment. Moreover, the elusive link between strategic alignment and firm performance calls for further research into intermediate variables which might in turn affect firm performance. Therefore, the purpose of this paper is to provide a detailed roadmap in which practitioners can use to understand the resources required to realize the potential values of their IT investments. This could be achieved by presenting further insight to the factors that could lead to strategic alignment; and investigating the relationships among strategic alignment antecedents, strategic alignment and firm performance through vital intermediary variables namely innovation and knowledge management (KM) strategies.