Determinants of Organisational Transformation: An IT-Business Alignment Perspective

Previous research in organisational sociology has focused on how organisational forms are evolved, transformed and sustained. This paper continues in this line of enquiry and tests the role of IT in organisational transformation. The transformation of an organisation can be gauged by observing key organisational attributes that are likely to feature in transformed (new) organisations. Following a review of previous literature, three major factors, that is, business strategy, IT strategy, IT strategic alignment were hypothesised to influence the dimensions of new organisational forms (NOFs). To test this model, data were collected from a survey of 312 Australian businesses. Structural equation modelling was employed to test the research hypotheses. Results from this study uncovered that the level of strategic alignment was significantly associated with the attributes of NOFs. This implies that organisations that have progressed well in the IT-business alignment maturity ladder are likely to change their structure and control mechanisms. This study concludes by highlighting some of the theoretical and practical implications of the findings.