A framework for information technology strategies integrated with business strategies that contribute to successful business performance within organizations

The proliferation of innovative information technology (IT) presents a new dilemma for organizations that plan long-term business strategies. Within business organizations, strategic planners must decide which business and IT strategy mix to employ for optimum financial performance and future success. The primary objective of this study is to determine a solid array of planning tools and actions that identify the best business and information technology strategies linkages. The proper business and IT strategy integration, when employed successfully, should ensure higher financial performance is achieved by business organizations,; Six major constructs were investigated to corroborate the premise that if certain business and IT strategies are integrated within an organization's long range planning methods, then relationships that increased financial performance will result. The six constructs studied were decomposed into corporate strategy, business strategy, IT strategy, long-range planning methods, business and IT integration strategies, and financial performance.; Seventy companies from three distinct industries within the 1998 Business Week 50 (BW 50) report were selected using multi-stage cluster sampling. A two-phased research model was developed to collect, validate, and quantify the construct data. First, a historical review of the 1998 corporate filings (annual report and Form 10-K reports) extracted components of the firm's actual strategic plans. The historical review analysis produced a prioritized list of predominant business strategies.; Second, 22 of the 70 firms responded to the researcher's survey to assess current strategic actions behaviors that affect their financial performance. A Chi Square (p ≤ .05) statistical test analyzed and cross-referenced respondents' answers against financial performance data supplied via the BW 50 report. In this study, there is a significant correlation between certain business and IT strategy linkages practiced within organizations that resulted in heightened financial performance. These particular business and IT strategy groupings that lead to success along with their distinct financial indicators are cited in this study. More specifically, convergent validity emerged between both research approaches that predicted product/services differentiation as a dominant business strategy. These findings confirm that long-term financial performance can be improved by merging distinct business and IT strategies. These implications aid in discovering business and IT strategies that yield higher financial performance for future planning accomplishments.