IMPACT OF TECHNOLOGICAL MISALIGNMENT

Title Page
Topic of proposal:

Impact of Technological Misalignment on Organizational Profitability

Name of Student:

Waqas Ahmad

Student ID:

MB140400020

Course:

Special Topic (SPT730)

Session:

Spring 2016

Date of Submission: 12th August 2016

University logo:
University name:

Virtual University, Lahore, Pakistan

IMPACT OF TECHNOLOGICAL MISALIGNMENT

Table of contents
Chapter # 1: Introduction and Rational of the study
1.1 Introduction
1.2 Background
1.3 Research Objectives
1.4 Research Questions
1.5 Significance of the Study
Chapter # 2: Literature Review, Theoretical Framework, Hypotheses
2.1 Literature Review
2.2 Theoretical Framework
2.3 Hypotheses
Chapter # 3: Research Design/Research Methodology
3.1 Type of Research (Quantitative or Qualitative)
3.2 Research Paradigm (Positivistic, Constructive or Pragmatic)
3.3 Nature of Research Study (Descriptive, Exploratory or Explanatory)
3.4 Data Collection Sources (Primary and Secondary Sources Used)
3.5 Data Collection Tools/Instruments
3.6 Subjects/Participants
3.6.1 Target Population
3.6.2 Sampling Frame (if any)
3.6.3 Sample Size
3.6.4 Sampling Technique

IMPACT OF TECHNOLOGICAL MISALIGNMENT

3.6.5 Data Processing, Analysis Techniques and Interpretation
References: (APA format)

IMPACT OF TECHNOLOGICAL MISALIGNMENT

Chapter # 1: Introduction and Rational of the study

1.1

Introduction:

Technological changes are rapidly happening. All business organizations have to

fight hard to survive in this fast paced evolving market. An organization cannot compete
with external environmental factors until they are not well prepared. Organizations have
to be prepared for all technological changes which are essential for organizational
profitability. If organization will not be ready for this required technological change, their
organizational profitability will be hampered and very existence of the organization will
be in danger. We know that not all of technological changes can be adapted by
organization due to limited availability of resources with organization therefore
alignment of technological advancement shall be done in such a way that they should
have positive impact on organizational profitability.
1.2

Background:

As technology changes rapidly, its alignment with existing strategic plan of an

organization is mandatory as it impacts directly to organizational profitability. Past
researchers have explored this topic and tried to found out different impact. They found
out two results: first, there is no impact on organizational performance if technology
change is not embedded in organization strategy alignment. Second, there is impact of
technological change on organizational performance.
1.3

Research Objectives:

Determining the impact of lack of preparedness for technological change impact

on organizational performance
Determining the significance and impact of organizational foresight (or absence of
foresight) on strategic decision making for technological change and organizational
performance.
1.4

Research Questions:

How does lack of preparedness for technological change impact organizational

performance?
How does organizational foresight impact strategic decision making for technological
change and organizational performance?

IMPACT OF TECHNOLOGICAL MISALIGNMENT

1.5

Significance of the Study:

This study will help organizations and theorists to analyze any discrepancy
between technological trend in the environment and required changes in organizations
strategy, if no necessary required changes are adapted then its impact on organizations
profitability will be inevitable.

IMPACT OF TECHNOLOGICAL MISALIGNMENT

Chapter # 2: Literature Review, Theoretical Framework, Hypotheses

2.1

Literature Review:
Strategic (Mis)alignment:

Researchers shared the idea that misalignment results in strategic decision

inaccuracies and these errors can only be corrected by realignment (Scherpereel, 2006).
The concept of alignment and misalignment has attracted scholarly interest in the
field of business strategy and has been used to express strategic match, strategic fit and
congruence (Mintzberg & al., 1998). Strategic fit and aligned is an ideal state of an
organization which should be attempted, but is hardly attained. Management recognizes a
future shift in competitive conditions and takes necessary action to get their organization
aligned with market trends (Chorn, 1991).
It has been widely accepted and agreed that a firms performance and profitability can be
manipulated by numerous factors and these can be further divided into two types; First,
external factors like industrial change and turbulent environment, Second, internal factors
such as direction and command, dimension, business culture and management (Anderson
& others, 2001). An alignment fit between external and internal factors is necessary if
organization wants to be profitable. There are four domains of alignment (misalignment)
as per ESCO model (Heracleous, Wirtz, & Pangarkar, 2009) which are environment,
strategy, core competencies and organization. The second alignment component strategy
stresses the need of clear strategic selections. Picking up the right strategy for your
organization can create a competitive advantage (Ghemwat, 1991). Therefore continuous
fit of realignment and re-positioning between strategy and its environment is anticipated.
Strategic alignment is realized as constant progression, which desires the headship to
balance both evolving and considerate strategies with changing demands of environment
and with strategy execution (Mintzberg H. , 1987). When industry is witnessing a major
technological change, organization must embrace itself with emergent alignment strategy
to get efficient organizational performance.
A lot of researchers have emphasized the linking between organizational alignment and
organizational performance. Contingency philosopher stressed that successful
performance is the outcome of an appropriate alignment of endogenous variables
(Structure, planning) with exogenous context variables (Technological change,
Environmental uncertainty) (Miller & Friesen, 1984).

IMPACT OF TECHNOLOGICAL MISALIGNMENT

Organizational Performance & Profitability:

From a deterministic viewpoint, the influence of changing environment and industry
state on performance of organization is substantial. Explicit trends of environment have
different effects on organizations, subject to organizations internal factors such as
organization policy and experience as well as strategic choices which contribute to
organizational success and profitability (Crossan, Vera, & Nanjad, 2008).
We know that organizational performance can be defined as actual result/output of an
organization against intended output (goals and objectives). As R. Selladurai suggested in
2002 that productivity in business process may be improved through gradual
improvements of Total Quality Management and prompt change of business process
reengineering using technological change. This will increase productivity which will
increase revenues i.e. profitability and hence this will lead to overall organizational
performance (Selladurai, 2002).
An organization performs several business processes to accomplish its strategic objective,
thus providing a series of prospects for the application of technology to improve
processes and hence organizational performance (Porter, 1985). Management research
has defined organizational performance in a range of viewpoints. Business performance
is defined along two magnitudes: growth and profitability relative to competition. The
growth aspect takes into account the view of long term well-being while the profitability
aspect implants the concept of strength (Ward & Griffith, 1996).
2.2

Theoretical Framework:

Strategic misalignment is independent variable and performance/profitability is

dependent variable. Strategic misalignment comes into picture due to either industrial
change factor or turbulent environment factor and in some cases due to both factors.

Industrial
Change

Turbulent
Environmen
t

Strategic
Misalignment

Organizations
Profitability /
Performance

If this strategic alignment is not maintained continuously with the changing trends of
industry, it will hamper organizations performance and profitability.

2.3

Hypotheses:

IMPACT OF TECHNOLOGICAL MISALIGNMENT

Technological misalignment has a negative impact on organizational performance.

IMPACT OF TECHNOLOGICAL MISALIGNMENT

Chapter # 3: Research Design/Research Methodology

3.1

Type of Research
The main purpose of this study is to determine and analyze the impact of lack of

preparedness in a rapidly changing technological environment for an organization.

Qualitative approach provides texture of real life in its many variations (Patton, 1986)
while quantitative with proper sampling enable to measure many subject reactions to a set
of questions (Warwick & Lininger, 1975).
Quantitative research is a simplest method, generally employed in research, having
measurable variables, with the intention to collect empirical/observed data, for computing
numerical analysis. Quantitative research is systematic empirical investigation of
observable phenomena via statistical or mathematical techniques (Lisa, M., 2008).
3.2

Research Paradigm:
The selection of methodology depends on what one is trying to do rather than a

commitment to a particular paradigm (Cayane, 1996).Inductive reasoning is more open

ended and exploratory, especially during the early stage of research. Inductive approach
will be used in this research, where theories are proposed leading towards the end of the
research process. Generally, this involves data collection and data analysis. This method
is often used in applications, which involve prediction, forecasting or behavior. In this
approach conclusion is drawn, keeping in view particular cases. Hypotheses are
generated to be tested on the basis of which theories are formulated before coming to
conclusions.
3.3

Nature of Research study

The nature of study is descriptive. The descriptive research methodology will be

used in this research, which has an important role in educational research. Descriptive
studies can yield rich data lead to important recommendations (Wehrs, 1992). It gathers
quantifiable information that can be used for statistical inference through data analysis.

IMPACT OF TECHNOLOGICAL MISALIGNMENT

10

The aforementioned research model has same characteristics as under analysis in research
in question, due to descriptive nature. Resultantly descriptive research is single and
appropriate option here, which will be utilized for requisite results.
3.4

Data collection Sources:

Keeping in view research in question, both primary and secondary sources will be

used for data collection.

3.5

Data collection tool

The data collection tool used for this research purpose:Questionnaire
The structured type questionnaire will be used for this research, as advocated by

Emile Durkheim (1858-1917).It includes the low level of involvement of the researcher
and the high numbers of respondents. Existing questionnaire available on record
pertaining to such type of research cannot meet our requirements as subject research is a
continuous development and need rapid changes, so new questionnaire will be need of
time. The large amount of information can be collected through questionnaire from a
large number of people in a short period as well as relatively cost effective way.
Keeping in view all pros and con it seems appropriate that specified questionnaire
should be used for this purpose, to save time, money and labor etc., because it is a best
tool may be used in this regard under the circumstances
3.6

Subjects / Participants
3.6.1

Target Population
The targeted population in this research will be managers working in the

telecommunications industry where technological change is rapid and generally

turbulent.

IMPACT OF TECHNOLOGICAL MISALIGNMENT

3.6.2

11

Sampling frame
Sampling frame is the set of source material from which the sample is

selected. Point of reference for sample selection will be all companies engaged in
telecommunications industry in Pakistan with data available from Pakistan
Telecommunication Authority (PTA).
3.6.3

Sample size
Sample size will be calculated by proportionate stratification. In this way

the sample size of each stratum is proportionate to the population size of the
stratum, strata sample sizes are determined by the following formula/equationnh = (Nh/N) ^n

Where nh

=sample size of stratum h

Nh

=Population size of stratum h

=total population size

And n

=total sample size

The Likert scale will be used to measure the response of teachers. The

term survey includes questionnaire or interview etc., as an instrument (Robson,

1993).Keeping in view feasibility, questionnaire will be distributed/mailed to
accessible population in such a way, which facilitate and motivate concerned for
appropriate and quick response. The courier, postal and electronic services will be
utilized in this regard, depending upon available facilities /feasibilities.
A five rating scale questionnaire will be used / administered to collect data
through various ways.
3.6.4

Sampling technique/method

IMPACT OF TECHNOLOGICAL MISALIGNMENT

12

Probability sampling method will be used in this research, where sample

has a known probability of being selected.
3.6.5

Data Process, Analysis Techniques and Interpretation

Statistical package for social sciences (SPSS) is the most popular

quantitative analysis software program used to generate tabulated/descriptions

statistics. It is also simple and easy in use, while entering data. This software will
be used to process the available data, as it is appropriate in use along with feasible
in cost.
The impact can be quantified with Regression. To measure variable at continuous
level such as measurement of performance Regression analysis will be used. In
SPSS statistics two variables are created to enter data. Linear Regression is used
to specify the nature of relation between two variables. Another way of looking at
it is give the value of one variable (independent) in SPSS, prediction can be made
for dependent variable. The descriptive statistics part of the output, gives the
Mean and Standard deviation.

IMPACT OF TECHNOLOGICAL MISALIGNMENT

13

References (APA Format):

Anderson, P., & Tushman, M. (2001). Organizational Environments and Industry Exit. Industrial
and Corporate Change, 10(3) 675-711.
Chorn, N. H. (1991). Alignment Theory: Creating Strategic Fit. Management Decision Vol.29,
20-4.
Crossan, M., Vera, D., & Nanjad, L. (2008). Transcendent Leadership: Strategic Leadership in
dynamic environment. Leadership Quarterly 19, 569-581.
Ghemwat, P. (1991). Commitment:Dynamic of Strategy. New York: Free Press.
Heracleous, L., Wirtz, J., & Pangarkar, N. (2009). Flying High in a Competitive Industry: Secrets
of World's Leading Airline. Singapore: McGraw-Hill Asia.
Miller, D., & Friesen, P. (1984). Organizations: A quantum view. Englewood Cliffs, NJ: Prentice
Hall.
Mintzberg, H. (1987). Crafting Strategy. Harvard Business Review, 66-75.
Mintzberg, H., Ahlstrand, B., & Lampel, J. (1998). Strategy Safari: Aguided tour through the
wilds of strategic management. New York: Free Press.
Porter, M. (1985). Competitive Advantage. New York: Free Press.
Scherpereel, C. M. (2006). Alignment: The duality of decision problems. Management Decision,
1258-1276.
Selladurai, R. (2002). An organizational profitability, productivity and performance model. Total
Quality Management Vol.13, 613-619.
Ward, J., & Griffith, P. (1996). Strategic planning for information systems. chichester, UK:
JohnWiley and sons.