The role and relevance of IT governance and IT capability in Business - IT alignment in medium and large companies

The key role of information technologies application in companies’ business strategy toolset is undeniable in current market. However, in order to improve organizational efficiency and also to achieve competitive advantage, information technologies should be in line with organization’s business strategies. The purpose of this study is to identify the impact of IT governance and IT capabilities on strategic alignment between business and IT, and also the extent of their influence. Quantitative method was used for this study and data were collected through survey questionnaires answered by business and IT managers and executives. Examined constructs are IT resource management, Performance measurement, knowledge sharing, IT architecture, and IT infrastructure. According to the findings of this study, all five factors influence the alignment of business and IT positively, and among them, performance measurement has the highest impact.