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Purpose

– Based on the literature of IT strategic alignment and e-collaboration, the purpose of this paper is to specify how e-business strategic alignment (e-alignment) influences e-collaboration capabilities and improves firm performance, and whether the time-lag effect existed in this relationship.

Design/methodology/approach

– The authors tested the research hypotheses using a field survey of 145 Chinese corporations. The research model was validated using SmartPLS 2.0 with both subjective and objective data collected from the survey and Oriana database.

Findings

– The results support the notion of a positive and significant link between e-alignment and e-collaboration capabilities and between e-collaboration capabilities and firm performance. The authors also show that the effect of e-alignment on performance is fully mediated by e-collaboration capabilities and that e-collaboration with suppliers has a one-year time-lag effect on firm performance.

Research limitations/implications

– This research extends and integrates the literature on IT strategic alignment and e-collaboration, and explains why and how e-alignment generates firm performance.

Practical implications

– This paper includes two implications for managers. First, when formulating e-business strategies, managers should focus on establishing e-collaboration capabilities with partners. Second, the downstream process is the direct sources of business value. Managers should take the establishment of e-selling process as a critical business strategy.

Originality/value

– By focussed on intermediate factors and time-lag effects, this study provides significant implications for IT strategic alignment and e-collaboration literature.

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