The role of people and social context in promoting the IT organizational performance: Evidence from Portugal

Purpose - Motivated by the increasing role of information technology (IT) in today's organizations, the purpose of this paper is to examine the relationships between business and IT executives in order to improve the organizational performance of the different aspects of IT technology and related systems. In the process, special attention is given to drivers which facilitate the cooperation between the parties involved. Design/methodology/approach - This survey-based research utilizes structural equation modeling methodology to uncover the relevant variables pertaining to the promotion of a positive social and strategic context needed to increase the effectiveness of organizational IT facets. Findings - The effectiveness of IT in modern organizations is contingent on a social alignment, business - IT alignment, strategic consistency, and common vision among the people who manage the IT function and those who need the organization. Research limitations/implications - This study is based on a sample of Portuguese manufacturing organizations. Therefore, findings and conclusions should be interpreted accordingly. In this context, future research in other organizational cultural settings is called for in order to refine and validate the results of this study. Practical implications - The role of establishing an organizational culture which stresses the common goal and mutual trust and cooperation in creating effective IT organizational utilization is underscored. As such, business executives are encouraged to exercise their leadership skills in order to create an organizational strategy which aligns IT capabilities and investments with the competitive strategy of the organization. In this context, creating an organizational culture which promotes business - IT alignment in a healthy social context is necessary. Originality/value - The issues and concerns addressed in this study should bridge the gap between business and IT executives. In the process, this study facilitates and encourages the effective utilization of the different facets of IT technology as they better serve the people of the organization. This advances the cost and practice of the strategic organizational role of IT investments.