Information Technology-business Strategy Alignment and Organizational Performance Among Fintech Firms in Nairobi County, Kenya

Abstract

The study's general objective was to examine the relationship between alignment of IT-business strategies and the performance of fintech firms in Nairobi. The specific objectives were to; establish the extent of IT-business strategies alignment among fintech firms in Nairobi, establish the drivers of IT-business strategies alignment among fintech firms in Nairobi, establish the challenges faced in the alignment of business and IT strategies among fintech firms in Nairobi and to determine the relationship between IT-business strategies alignment and organizational Performance among fintech firms in Nairobi. Literature was reviewed to cover theories and empirical studies to guide conceptual framework development. The study used cross-sectional and descriptive designs targeting 56 fintech, and a census was used. Information was obtained in its primary form using questionnaires. Means, standard deviations, and regression analysis guided the data processing, and the tables informed the presentation. It was shown that some of the aspects of business and IT strategies alignment that had been embraced include functional ITBusiness strategies alignment, structural IT-Business strategies alignment, and dynamic ITbusiness strategies alignment. Shared domain knowledge, conducive working relationships among staff, and staff competency were the identified drivers of IT-business strategies alignment. Limited financial resources, a low level of understanding of IT among staff, and the existing unstable software were the challenges faced during IT-business strategies alignment. Furthermore, 65.5% change in the organizational performance of fintechs is explained by ITbusiness strategies alignment. The study recommends that the top leadership and management team working in fintech in Nairobi should cultivate good working relationships with other staff as this drives between IT-business strategies alignment in an organization. The human resource managers working among fintechs in Nairobi should enhance employee competency through training to drive IT-business strategies alignment.