Technology alignment and business strategy: A performance measurement and Dynamic Capability perspective

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Abstract

AbstractRapid changes in market structures and technology lead to misalignment between strategy and operations. Whist this phenomenon is most prevalent in technology based manufacturing industries, utility organisations (e.g. electricity and telecoms) provide a useful context to explore the Performance measurement (PM) and technology alignment challenges from a Dynamic Capabilities Theory perspective where there is a progressive shift towards deregulated markets. The aim of this paper is twofold: First, to explore the role of Dynamic Capabilities Theory and PM approaches in improving the alignment between business strategy and technology strategy (Level 1 alignment); second, to explore the role of Dynamic Capabilities Theory and PM approaches in aligning technology strategy with operational technology routines and practices (Level 2 alignment). In the absence of overarching theory an inductive approach which draws upon Dynamic Capabilities theory. Four longitudinal case studies are used leading to the development of a conceptual framework and propositions for multilevel technology alignment. Data from 38 interviews and eight separate focus groups, documentation, and participant observations (over a three-year period) are used. The theory-building process shows the need to identify and develop PM-based technology alignment Dynamic Capabilities (PM-DCs) which help in improving and maintaining alignment between business strategy and technology strategy (Level 1 alignment) and between technology strategy and technology practices (Level 2 alignment). This approach requires critically reflective action-learning approaches to identify and nurture these PM-DCs.
LanguageEnglish
Pages1-19
JournalInternational Journal of Production Research
Volume1
Early online date20 Jul 2017
DOIs
Publication statusE-pub ahead of print - 20 Jul 2017

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Performance measurement
Alignment
Business strategy
Dynamic capabilities
Technology strategy
Manufacturing industries
Longitudinal case study
Focus groups
Electricity
Misalignment
Market structure
Action learning
Documentation
Theory building
Conceptual framework
Participant observation

Keywords

  • KEYWORDS: PERFORMANCE MEASURES
  • TECHNOLOGY MANAGEMENT
  • CASE BASED REASONING
  • OPERATIONS STRATEGY
  • STRATEGY

Cite this

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title = "Technology alignment and business strategy: A performance measurement and Dynamic Capability perspective",
abstract = "AbstractRapid changes in market structures and technology lead to misalignment between strategy and operations. Whist this phenomenon is most prevalent in technology based manufacturing industries, utility organisations (e.g. electricity and telecoms) provide a useful context to explore the Performance measurement (PM) and technology alignment challenges from a Dynamic Capabilities Theory perspective where there is a progressive shift towards deregulated markets. The aim of this paper is twofold: First, to explore the role of Dynamic Capabilities Theory and PM approaches in improving the alignment between business strategy and technology strategy (Level 1 alignment); second, to explore the role of Dynamic Capabilities Theory and PM approaches in aligning technology strategy with operational technology routines and practices (Level 2 alignment). In the absence of overarching theory an inductive approach which draws upon Dynamic Capabilities theory. Four longitudinal case studies are used leading to the development of a conceptual framework and propositions for multilevel technology alignment. Data from 38 interviews and eight separate focus groups, documentation, and participant observations (over a three-year period) are used. The theory-building process shows the need to identify and develop PM-based technology alignment Dynamic Capabilities (PM-DCs) which help in improving and maintaining alignment between business strategy and technology strategy (Level 1 alignment) and between technology strategy and technology practices (Level 2 alignment). This approach requires critically reflective action-learning approaches to identify and nurture these PM-DCs.",
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AB - AbstractRapid changes in market structures and technology lead to misalignment between strategy and operations. Whist this phenomenon is most prevalent in technology based manufacturing industries, utility organisations (e.g. electricity and telecoms) provide a useful context to explore the Performance measurement (PM) and technology alignment challenges from a Dynamic Capabilities Theory perspective where there is a progressive shift towards deregulated markets. The aim of this paper is twofold: First, to explore the role of Dynamic Capabilities Theory and PM approaches in improving the alignment between business strategy and technology strategy (Level 1 alignment); second, to explore the role of Dynamic Capabilities Theory and PM approaches in aligning technology strategy with operational technology routines and practices (Level 2 alignment). In the absence of overarching theory an inductive approach which draws upon Dynamic Capabilities theory. Four longitudinal case studies are used leading to the development of a conceptual framework and propositions for multilevel technology alignment. Data from 38 interviews and eight separate focus groups, documentation, and participant observations (over a three-year period) are used. The theory-building process shows the need to identify and develop PM-based technology alignment Dynamic Capabilities (PM-DCs) which help in improving and maintaining alignment between business strategy and technology strategy (Level 1 alignment) and between technology strategy and technology practices (Level 2 alignment). This approach requires critically reflective action-learning approaches to identify and nurture these PM-DCs.

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