STRATEGIC ALIGNMENT IMPACTS ON ORGANIZATIONAL PERFORMANCE IN INDONESIAN BANKING INDUSTRY

Strategic alignment has attracted the attention of researchers and practitioners for the last 15 years. This paper reports findings from a survey on the impacts of strategic alignment on organizational performance in the Indonesian banking industry. The survey was conducted through internet-based and postal questionnaires sent to selected companies. Structural Equation Modeling (SEM) is utilized to apprehend the strategic alignment concept as an emergent variable derived from the co-variation of level of business strategy and level of IS/IT strategy. Hence, we explore the role of this emergent concept as a determinant of organizational performance. Analysis of the data reveals a generally positive impact towards the organizational performance.