Aligning information technology and business strategy with a dynamic capabilities perspective: A longitudinal study of a Taiwanese Semiconductor Company

Strategic alignment involves the development and reconfiguration of information technology (IT) to support business strategies. This paper applies the dynamic capabilities perspective to analyze the strategic information system alignment process. The paper further argues the approach is constructive in understanding and overcoming difficulties in achieving and sustaining alignment. From a longitudinal case study of a semiconductor company in Taiwan, the results show an unaligned strategic information system (with an implemented IT strategy that varies from the intended IT strategy) impedes the development of IT. Path dependence, or the implications of prior IT decisions, is another barrier for alignment. A broader view of intended alignment, focusing on IT combined with clear business vision, can be beneficial for adding future IT resources. In addition, dynamic capabilities, which are critical for the creation and strength of IT resources, positively influence the alignment process and its future implementation success.