Investigating the Mediating Effect of Business-IT Alignment between Management of IT Investment and Firm Performance

ABSTRACT Studies on the effect of business-IT alignment between the management of IT investment and firm performance are scarce. This study focuses on process theory, resource-based view, and Val-IT 2.0, to investigate how business-IT alignment mediates the management of IT investment and firm performance using 194 Chinese IT and business managers’ responses. Findings reveal a significant impact on the hypotheses, whereas alignment mediates the proposed link. This study theoretically contributes and suggests insightful implications for practitioners.