Shared knowledge, IT resources and business process performance

Abstract

This research assesses the effects of resources and capabilities related to Information Technology (IT), and of shared knowledge among IT and business managers, on the level of operational alignment between these areas, and, thereby, on the performance of business processes. Data was collected from IT and back office managers of 39 companies from Rio de Janeiro that operate in the service sector. Results of structural equations analysis suggest that operational alignment positively affects the performance of back office processes, which, by its turn, influences the satisfaction of process customers. Although IT resources and capabilities, as well as shared knowledge, do not seem to have a direct effect on the level of operational alignment, it was observed that, as IT and business areas share more knowledge, the flexibility of a company’s IT infrastructure tends to have stronger, positive effects on operational alignment. The results are discussed with their implications for theory and practice.