ABSTRACT
The incredible growth of the information systems (IS) and information
technology (IT) during the last two decades has clear, direct and huge
impacts on all life sides, especially in the business. It is becoming a
strategic enabler of new ways of doing business. Furthermore it plays
the key role of doing business. It is involved in all business
functions. In addition, Technology such as the internet and E-business
has caused many companies to review their business and IT strategies and
adopt the alignment philosophy to enhance their position, achieve
business objectives and fully utilize the investment in the technology.
According to studies reviewed information technology strategy and
business strategy alignment is a hot topic. Moreover, it is considered
as one of the top managers concerns. Alignment is a dynamic, complex
process that takes time to develop and even more effort to sustain.
This research aims to test if the alignment between IS/IT strategy and
business strategy have an impact on the business performance in the
Palestinians firms. To achieve this purpose the researcher used both
qualitative and quantitative research methodologies. Qualitative data
were collected via interviews with many CIO’s and CEO’s and consultants
to make sure that our statistical findings agree with the reality of the
Palestinian firms. Moreover, to provide a more description and
understanding about the alignment in the Palestinian firms. In
addition, the quantitative part based on previous research by titled
“Alignment between business and IS Strategies, a study of prospectors
analyzers and defenders”. Furthermore, data were gathered from the
research population which consist of 46 Palestinians firms that are
listed in the Palestine exchange via a survey. The response rate of
survey was (46%).
Results indicate that there is a positive correlation between business
strategy and IS/IT alignment and business performance in the
Palestinians firms, the correlation coefficient value was (0.27).
Based on the research findings, Palestinian firm should perform studies
and researches to determine the best business strategy that fits their
business environment and fit the Palestinian market. Furthermore, Firms
should focus more on the IS/IT strategies. Moreover, make studies and
researches even take consultations before investment in IS/IT, to make
sure that the new investment is right and fit the firm business
strategy. Eventually, firms should Review the firm business strategy and
IS/IT alignment continuously, and consider this process as management
duty, due to the alignment impacts on improving business performance.