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Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Business and IT Strategic Alignment and Strategic Use of IT in Small Firms

Business and IT Strategic Alignment and Strategic Use of IT in Small Firms
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Author(s): Chia-an Chao (Indiana State University, USA)
Copyright: 2007
Pages: 2
Source title: Managing Worldwide Operations and Communications with Information Technology
Source Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-59904-929-8.ch310
ISBN13: 9781599049298
EISBN13: 9781466665378


In businesses large and small, information technology has become an integral part of operation. To compete with large businesses, IT savvy small firms are at an advantage (Beheshti, 2004; Lin, Vassar, & Clark, 1993; Schaefer, 1995). Studies have shown positive impact of IT on small businesses, from helping small firms enhance their operational efficiency (Beheshti, 2004; Penhune, 1998) to driving business growth (Eckhouse, 1998), to integrating marketing operations with marketing strategies (Roge & Chakrabarty, 2002). In addition to the operational and strategic importance of IT, given small businesses’ limited financial resources (Small Business Administration, 2000), small firms must invest wisely by making sure that their IT resource allocation properly reflects their business priorities. In other words, they must ensure their IT strategies are inline with their business strategies. This study examines the impact of IT and business strategic alignment in small firms, their business strategic orientations, and owner characteristics on the strategic use of IT.

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