Study on relationship between IT Flexibility, IT-Business Strategy Alignment and IT Capabilities

IT infrastructure flexibility is now being viewed as an organizational core competency that is necessary for organizations to survive and prosper in rapidly-changing, competitive, business environments. Utilizing data from InfoTech Department of Lovely Professional University, this study examines the impact of the four components of IT infrastructure flexibility (compatibility, connectivity, modularity, and IT personnel) on strategic IT-business alignment and the extent of applications implementation within an organization. The findings from analysis of a structural model provide evidence that connectivity, modularity, and IT personnel have significant, positive impacts on strategic alignment and that all four components have significant, positive impacts on the extent of applications implementation. The study reinforces the importance of IT infrastructure flexibility to organizations as one source for sustainable competitive advantage.