Introduction
Strategic business alignment refers to the process of linking the organization's internal operations and resources with forces emanating from its external environment. Organizations operate as open systems, and their operations are influenced by the factors that emanate from the context in which they operate. The main focus of this paper is the development of an annotated bibliography of five articles that address the issue of strategic business alignment.
Njoroge, K., Ongeti, W., & Kasomi, F. (2016). Does external environment influence organizational performance? The case of Kenyan state corporations. Management and Organizational Studies , 3(3), 41-52
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The main area of inquiry by the author is whether the external environment influences operations of state corporations. The complexity and dynamism of the external environment have been noted to influence the success of contemporary organizations. Nevertheless, the author notes that the external environment should not merely be viewed as a source of threat to such organizations. Instead, such external forces also expose the entity to multiple opportunities that corporations can exploit if they effectively align their internal operations with the demands emanating from the external environment. Regardless of the specific industries that organizations operate in, the external environment forces influence the performance of such entities. Firms thus need to have a clear understanding of the manifestations of forces from their external environment. For organizations to thrive, it is essential for them to address the uncertainties they face from the external environment. In spite of this, the concerns on what should be measured from the external environment are yet to be resolved in contemporary organizations. The authors define dynamism in the external environment as the ever-changing forces in the external environment. In particular, the authors have noted that such dynamism has the potential of changing the purpose of the organization. The turbulent external environment influences organizational performance. A significant contribution that the authors have noted in the article is that even state corporations performance is influenced by forces from their external environment in spite of the fact that the state can dictate environmental elements in the areas where the organization operates.
Waiganjo, M. (2012). The relationship between strategic human resource management and firm performance of Kenya’s corporate organizations. International Journal of Humanities and Social Science , 2(10), 62-71
In the article, Waiganjo (2012) examined the relationship that exists between strategic human resource management and firm performance. The author has noted that no matter how sophisticated the organization’s operations are, success would not be realized unless relevant strategies are adopted in its operations. Human resource strategies need to be formulated in the context of the overall organizational goals and objectives. The author has noted that corporations in Kenya contribute 16.3% of the gross domestic product. In spite of this high level of contribution to the economy, they are faced with rapid changes from their operating environment. These changes need to be addressed. Training and development is a key element that enables organizations to equip employees with skills that will enable them to address the challenges that they face from the external environment. The author has presented the universality theory which indicates that there exists a set of superior human resource practices that organizations need to follow in their operations. The author has also presented the contingency theory. In this theory, agencies are expected to seek fit in their internal and external processes. HR strategies need to be developed in full consideration of the strategic goals of the organization. Besides these two theories, the author has also presented the configuration theory. Under this theory, firms need to combine their external fit with internal fit if they are to realize success in their operations in the industry.
Salimian, H. et al. (2012). Alignment in the organization strategy window. African Journal of Business Management 6 (51), 12016-12022
In the article Salimian et al. (2012) indicates that the success of any organization is dependent on its ability to align its business level, functioonal as well as corporate strategies. It is important for the organization to engage in vertical alignment where strategies at various levels of its operation are aligned with the organization mission and vision. On the other hand, it will be important for organizations to engage in horizontal alignment, ensuring that its internal resources and capabilities are aligned with demands and forces from its external environment. The author has emphasized on internal alignment where operations in different departments are aligned in a synergetic manner. The functional strategies need to be aligned with the business level strategy. For instance, each of the departments in the organization needs to operate in a manner that is supportive of the overall business strategy in the firm. The authors have noted that the alignment of the various approaches in an organization has the potential of enhancing the performance of the organization.
Henderson. J.C., & Venkatraman, N. (2000). Strategic alignment: leveraging information technology for transforming organizations. IBM Systems Journal, 32(1), 472-485
In the article, the author has noted the increasing importance of information technology in contemporary organizations. In spite of this, there are limited frameworks on how organizations can align their operations with the opportunities and challenges that are posed by information technology. Information technology is no longer perceived as a back office resource, but organizations are using it for purposes of their strategic competitiveness. The author notes the importance of continuous adaptation to change by contemporary organizations. As competing firms make use of technology to drive their performance in the market, failure of agencies to align their operations with developments in information technology will result in them losing their customers to other competing firms. Organizations need to leverage on technology in differentiating their operations from those of competing firms. The author has noted the importance of changes in thinking among management executives when it comes to the role of information technology in organizations. In spite of this, managers are faced with fundamental questions that need to be addressed. They are seeking to understand the alternative perspectives that they can adopt in leveraging on information technology in their operations in the organization. They are also seeking to identify the criteria for assessing benefits that emanate from the use of information technology. In particular, the authors have noted the need for an organization to align their operations with systemic information technology competencies, information technology governance as well as the identification of the right scope of information technology.
Katz, B., Preez, D., & Louw, L. (2016). Alignment of internal and external business and
innovation domains. South African Journal of Industrial Engineering, 27(1), 61-74
In the article, the author notes that traditional sources of competitive advantage such as production capabilities are static in contemporary organizations where the success of the firm is not solely dependent on the production capabilities of such business alone but also the forces that such organizations face from their external environment. Alignment should occur between an organization's internal structure and its demands that such an organization face from their external environment. The authors have noted the existence of differing cultures in environments where organizations operate in the market. Failure to align their operations with cultural demands limits their success. In particular, the authors indicate that proper environmental scanning will enable organizations to adopt disruptive technologies that will enhance their competitiveness in the market in spite of the existence of competition. For organizations to engage in objective alignment, they need to have a clear understanding of the target market, identify their key products and identify their distinctive competencies. Alignment of skills with consumer demands provides such organizations with a competitive advantage.
Conclusion
Strategic alignment is presented in this study as an essential determinant of success in contemporary organizations. Modern organizations are operating in a highly dynamic and uncertain external environment, indicating a need for them to align their operations with demands from the external environment. Internal alignment is also important where the strategies and operations of an organization at different levels are aligned with the overall organizational mission and vision.
References
Henderson. J.C., & Venkatraman, N. (2000). Strategic alignment: leveraging information technology for transforming organizations. IBM Systems Journal , 32(1), 472-485
Katz, B., Preez, D., & Louw, L. (2016). Alignment of internal and external business and innovation domains. South African Journal of Industrial Engineering, 27(1), 61-74
Njoroge, K., Ongeti, W., & Kasomi, F. (2016). Does external environment influence organizational performance? The case of Kenyan state corporations . Management and Organizational Studies , 3(3), 41-52
Salimian, H. et al. (2012). Alignment in the organization strategy window. African Journal of Business Management 6(51), 12016-12022
Waiganjo, M. (2012). The relationship between strategic human resource management and firm performance of Kenyans corporate organizations. International Journal of Humanities and Social Science, 2(10), 62-71
