While researchers have encouraged more research on the causal chains between IT investments and firm performance, the results of empirical studies have been inconclusive. This is partly due to the exclusion of IT-business strategic alignment (known as strategic alignment). Furthermore, although there is significant literature on strategic alignment and its consequences, little progress has been made in developing a comprehensive theoretical understanding of how organizations can leverage strategic alignment types to positively influence firm performance. Therefore, this study has succeeded in developing a causal model illustrating the relationships between IT-business strategic alignment antecedents, IT-business strategic alignment, and firm performance through vital intermediary variables, namely explicit and tacit knowledge management (KM) strategies.

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