Strategic Alignment Impacts on Organizational Performance in Indonesian Banking IndustrY

Nofie Iman(1*), Jogiyanto Hartono(2)

(1) Master in Finance, Accounting and Management, University of Bradford.
(2) Faculty of Economics & Business, Universitas Gadjah Mada, Yogyakarta
(*) Corresponding Author


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.


banking industry; organizational performance; strategic alignment

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