The impact of strategic alignment on organizational performance: The case of Ethiopian universities

Gede, Dawit Udessa; Huluka, Admasu Tesso Article The impact of strategic alignment on organizational performance: The case of Ethiopian universities Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Gede, Dawit Udessa; Huluka, Admasu Tesso (2023) : The impact of strategic alignment on organizational performance: The case of Ethiopian universities, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 10, Iss. 2, pp. 1-17, https://doi.org/10.1080/23311975.2023.2247873 This Version is available at: https://hdl.handle.net/10419/294589 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. 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Published by Informa UK Limited, trading as Taylor & Francis Group. Published online: 23 Aug 2023. Submit your article to this journal Article views: 4773 View related articles View Crossmark data Citing articles: 1 View citing articles MANAGEMENT | RESEARCH ARTICLE The impact of strategic alignment on organizational performance: The case of Ethiopian universities Dawit Udessa Gede 1 * and Admasu Tesso Huluka 2 Abstract: Strategic alignment deals with organizational strategic fit with functional areas strategies, such as human resources management strategy. It is based on goal setting premise which believes in collaborative effort that involves all parties imagining and working towards a common aim in tandem. Strategic alignment in this study takes assumption of goal setting theory stressed on importance of clarity of the goal to perform at the highest level and achieve success. The purpose of this study was to look into the impact of strategic alignment on organizational performance. Clarity in the aim, role clarity, and process clarity were discovered and examined for the measurement of organizational strategic alignment. The study took a quantitative approach with descriptive and explanatory research designs. Three Ethiopian universities were chosen based on generation of establishment to include 365 personnel in the sample using a random selection technique. Descriptive statistical tools such as mean and standard deviation were used, whereas structural equation models were used for confirmatory factor analysis and path analysis. According to the study’s findings, goal clarity, role clarity, and process clarity all have a significant and favorable effect on organizational performance in higher education. Findings of the study reveal also that organizational performance varies among study institution based on implementation level of strategic alignment. Based on the study’s findings, it is recommended that organizational leaders outline organizational strategic intents with specific goals. Thus, it is recommended that governing bodies need to promote defined roles and processes for all workers. Dawit Udessa Gede ABOUT THE AUTHOR Dawit Udessa is a lecture in the Department of Management, College of Business and Economics, Bule Hora University, Ethiopia. He is a PhD student in Bule Hora University in management department. Currently, he is working on dissertation titled impact of human resource management practices and strategic alignment on organizational performance: mediating role of employee engagement: Case in Ethiopian higher educational institutions. Dawit has more than 6 years’ different industry and about 6 years teaching experience in university. His hobbies and interest are reading and advising others. PUBLIC INTEREST STATEMENT Strategic alignment increasingly showing important role in the organizational performance improvement. This study provides significance of strategic clarity for goal achievement in public institutions. Moreover, this study magnifies importance of alignments between strategic components. To increase employee commitment and engagement; institutional leaders must increase the level of employee trust in management system through clarity in goal, role and process, which increases individual motivation to contribute for their institutional better achievements. Gede & Huluka, Cogent Business & Management (2023), 10: 2247873 https://doi.org/10.1080/23311975.2023.2247873 Page 1 of 17 Received: 14 May 2023 Accepted: 10 August 2023 *Corresponding author: Dawit udessa Gede, Department of Management College of Business and Economics, Bule Hora University, Bule Hora 144, Ethiopia E-mail: dawitudessa2008@gmail. com Reviewing editor: Santiago Gutierrez-Broncano, Business Administration, University of Castilla-La Mancha, Spain Additional information is available at the end of the article © 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group. This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The terms on which this article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent. Subjects: Sustainable Development; Economics; Finance; Business, Management and Accounting; Keywords: alignment; clarity; goal; role; performance; process; strategy 1. Introduction Organizational performances are a set of overall preferred results that it wants to accomplish and measure for different levels of hierarchy and can be assessed for individuals, groups, and the entire organization as a whole (Knies et al., 2016). Thus, performance is success that doesn’t exist by itself, but it is a function of individual efforts and the result of action (Anwar & Abdullah, 2021). Change dynamism in modern business environment complicated the management system and challenging effectiveness in performance. Hence, to sustain performance improvement, organization of all structure and size searching for strategic fit that allow all parts of the system to be closely integrated and aligned toward actively achieving the desired results. Thus, integration of business resources and activities with organizational strategic priority is termed as strategic alignment as it is used in this study. Strategic alignment is critical trend among contemporary strategic concepts helping organizations to cope up with challenges and altering old work system to productive one (Sharma & Behl, 2023). It is a long-term function that secures organizational survival and protect the continuity of performance improvement (Sha et al., 2020). Strategic alignment allow harmony relation and transparent communication between lower and higher level administrators and staff. This enables organizations to work together and achieve a unified goal through effective communications. It is a source of compatibility and harmony at the organization’s internal level due to unified efforts (Abanumay & Mezghani, 2022; Ahmad & Adnan, 2017; Chtourou Ben Amar & Ben Romdhane, 2020). The basic foundation of strategic alignment is contingency theory that states the fit between certain contextual and organizational factors leads to higher performance (Hanisch & Wald, 2012). There is also configurational theory which suggests strategic alignment as the fit between a firm’s strategy and its internal and external factors leads to superior firm performance (Herd et al., 2018). Strategic alignment has different dimensions representing organizational strategic fit with various contextual components (Younis et al., 2023). It includes harmony of business strategy, information technology strategy, organizational infrastructure and processes, and IT infrastructure and processes by Luftman et al. (1993). Moreover, it encompasses organizational strategic fit with strategies in other functional areas, such as procurement strategy (Knudsen, 2003), human resource management strategy (Shih et al., 2005) and advertising strategy (Boudreau & Watson, 2006). But, the focus of this study is investigation of strategic clarity dimensions like goal clarity, role clarity and process clarity effects on organizational performance. Clarity in strategic statement provides valuable guidance to workers through specific identification of the performance dimensions that organization seeks to optimize (Smith & Thomas, 2020). It shapes workers’ attention in the most effective way which in turn, results in the highest performance. Goal, role and process clarities are the strategic clarity statements used for this study and represents the degree to which employees understand why the task assigned is relevant or essential (Anderson & Stritch, 2016). It help employees to feel that their organization includes their contribution and also acts as an essential motivator for achievements and task performance (Bellamkonda et al., 2021). Many scholars have attempted to explore implementation and theoretical implication of constructs at practical level given the importance of strategic alignment for the success of organizations performance. However, no common sense were reached about unified constructs and best dimension of strategic alignments (Herd et al., 2018; Reese, 2020; Wamba-Taguimdje et al., 2020). Moreover, the focus of many researchers in the area of strategic alignment is fit between organizational strategic priorities with information technology and/or with external environment. Gede & Huluka, Cogent Business & Management (2023), 10: 2247873 https://doi.org/10.1080/23311975.2023.2247873 Page 2 of 17 Therefore, the focus of current study is investigation of how clarity in organizational strategic objectives is communicated among the parts in organization and how it affects targeted performance. Though concepts of strategic alignment have been studied and insights into understanding of different dimension of strategic alignment and its impact on organizational performance were established (Al- Surmi, 2016; Ghonim et al., 2022; Sharma & Behl, 2023); those researches mainly focused on three issues as fit between information technology and business strategy, fit between business strategy and competitive environment and as fit between business and marketing strategy. But, alignments between important strategy components as goal, tasks (role) and procedure (process) through which assigned tasks performed was not yet investigated. Moreover, prior researchers have generalized strategic alignment as equally applicable concepts to all organization irrespective to size and nature without taking into account the specific strategies of firms and alignment dimensions. Therefore, this study focused on effects of strategic alignment dimensions as goal, role and process clarity in Ethiopian higher educational institutions assuming fit between clarity of these concepts improve performance. 2. Literature review 2.1. Theoretical foundation of strategic alignment Strategic alignment refers to fit between corporate resources with opportunities and threats. It can be traced to the work of Chandler (1962); Andrews (1971). In its early stage and much of the literature on strategic alignment has focused on the alignment of IT strategy with corporate strategy. Henderson and Venkatraman (1992) develop strategic alignment model framework that includes strategic fit, functional integration and linkage between business strategy and information technology. Henderson and Venkatraman’s strategic alignment model extends to emphasize how business success depends on the harmony of business strategy, information technology strategy, organizational infrastructure and processes, and IT infrastructure and processes by Luftman et al. (1993). It includes the calibration of the organization’s culture, staff, structure and governance with the strategy (Al-Shami et al., 2022). Moreover, strategic alignment deals with organizational strategic fit with strategies in other functional areas, such as procurement strategy (Knudsen, 2003), human resource management strategy (Shih et al., 2005) and advertising strategy (Boudreau & Watson, 2006). Those functional areas have also been addressed in the literature. For this study, Shih et al. (2005) strategic alignment dimension dealing with strategic clarity is a focus. The notion of alignment is used to investigate the extent of fit between an organization’s human resources management and its development strategies. In a sense of strategic human resource management, knowledge is the major driver of business performance by creating core capability to an organization (Moustaghfir, 2014). The logic behind the concept of strategic human resource management is linking such organizational core capabilities with business strategy so as to win competitive advantage against the rivals. It is the alignment of organizations strategic human resource management function as a strategic partner to organizational growth in the formulation and implementation of the organization’s strategies through human resource activities crating clarity in stated goal and courses of actions that take way to its achievement Junita (2016) suggested that a clarity in strategic management practice is the best way to differentiate one organization from other, and also as the most significant tool to achieve competitive advantage of organizations. Kidanemariam (2016) concludes that the alignment of human resource management with organizational strategy intent is positively related to performance. Based on his finding Kidanemariam also concluded that effectiveness of performance depends on the effective management of human activities. Strategic management focuses on developing internally consistent human resource activities to build employees’ knowledge, skills, and abilities in an effort to support competitive strategies and achieve business objectives. Aligning business strategies with human resource activities helps a business in three ways. In the first place, the business can adapt to a change because the time from the conception to the execution of a strategy is shortened. In the second case, the Gede & Huluka, Cogent Business & Management (2023), 10: 2247873 https://doi.org/10.1080/23311975.2023.2247873 Page 3 of 17 business can better meet customer demands because its customer service strategies have been translated into specific policies and practices. Third and lastly, the business can achieve both financial and non-financial performance through its effective execution of strategy. 2.2. Contingency theory This study attempted to find out relationship between strategic alignment in the form of goal clarity, role clarity and process clarity and organizational performance. According to contingency theory, performance is balanced fits between organization’s strategy and its environmental context (McAdam et al., 2019). This theory states that performance effectiveness depends on situational fit with business strategies. As this theory, no single management system and/or situation is fit for organizational effectiveness. The essence of strategic alignment is also fitness between different parts and components of organizational working system for better performance achievement. The importance of contingency theory for this study is to reside in fitness between strategic alignment dimensions used for study as goal, role and process clarity. Contingency theory argues that there is no universally acceptable management system applied equally at all organization in all conditions. But, it suggest that particular features of the system and effectiveness of operating system is depending on organizational situation and contextual factors. Therefore, it was used to investigate strategic alignment implementation level and organizational performance in sampled institutions as comparative analysis. 2.3. Goal setting theory Goal setting theory stressed on importance of clarity of the goal to perform at the highest level and achieve success (Asmus et al., 2015). This theory magnifies importance of strategic alignment for performance improvement. Many professionals explain why goals are important for motivation, but there are also several resources that provide guidance and guidelines for shaping objectives. Psychologist Edwin Locke’s goal setting theory is one of the most popular models of employee mental readiness through strategic alignment. This theory believes that goal-setting process is collaborative effort that involves all parties imagining and working towards a common aim in tandem (Asmus et al., 2015). Goal setting theory outlines five requirements for goals as it need to be clear, specific, and easy to understand, push employees (challenging), pursues the objective wholeheartedly from its inception, provides feedback and direction throughout the process to maintain momentum or encourage improvement and set reasonable expectations and should divide larger projects into smaller, easier to tackle tasks with steps, milestones, and regular review (Teo & Low, 2016). This theory is used to clarify investigation of impacts of strategic alignment on organizational performance in the form of fitness between clarity in the goal, clarity in the role and clarity in process. 2.4. Hypothesis development 2.4.1. Strategic alignment and organizational performance The effectiveness of an organization will be realized when that organization achieves its predetermined goals about the needs of stakeholders (Dreiss et al., 2017). This goal will not be achieved unless the employees are aware about it and responsibilities. Alignment is a necessary condition for organizational effectiveness. It helps to have common agreements about the goals and the means. Through that, all parts, members and functions of the organization work towards the same purpose. Anthony-McMann et al. (2017) recommend that the employees be precisely and accurately communicated on the strategic and goals of the organization. This increased employees’ understanding of organizational strategies leading to improved organizational commitment, job satisfaction, and trust among employees (Willems and Ingerfurth (2018). Gorgi et al. (2019) also indicate that the level of performance is higher among the employees who have a better understanding of organizational strategies and responsibilities. Consolidation of synergy between strategy, processes, organizational resources and technological capabilities is strategic means for organizational goal achievement (Chi et al., 2020). And they recommend that the mission, objectives and plans of organization should be integrated and synchronized with business strategies. Strategic alignment significantly and positively affects effectiveness of managerial decision and achieve the greatest impact on organizational success (Ghonim et al., 2020). Chi et al. (2020) suggested that keeping fit between organizational priorities and resources through strategic alignment Gede & Huluka, Cogent Business & Management (2023), 10: 2247873 https://doi.org/10.1080/23311975.2023.2247873 Page 4 of 17 enhances its response to environmental pressures and moves toward a higher level of performance by integrating the main thrusts of the organization’s goals and objectives. H1: Strategic alignment has positive significant effect on performance of higher educational institutions. 2.4.2. Dimensions of strategic alignment and organizational performance 2.4.2.1. Goal clarity and organization performance. Strategic alignment is related to organizational performance through goal clarity. When all levels of employees in the organization have clear, unambiguous views of the organization’s strategic goals; a culture of alignment is promoted. The culture begins at the individual employee level and expands to linkages at the group and organization levels. Empirically, it also clarified that the motivation of strategic alignment in terms of individuals is to create psychological stability of individual goals and actions whereas at organizational level it is to ensure high level of engagement toward the organization’s active support (Kim et al., 2020). The core concept behind goal clarity is that it is important that need to be clear in order to be perceived as important, thereby increasing one’s motivation to achieve it. H2: Goal clarity has positive significant effect on performance of higher educational institutions. 2.4.2.2. Process clarity and organization performance. Processes clarity not only increases individuals’ understanding of their work objectives and paths but also emphasizes the alignment of colleagues, teams, and organizations. Collective interaction among the team’s competencies can be improved by clear goals and processes. Process clarity is the degree to which individuals are certain about how they perform their duties. High clarity in process at the employee, team and organizational levels helps members understand the procedures necessary to achieve goals. Hu and Liden (2015) posit that clarity in goals and processes at the employee and team level is positively related to employee and team performance as well as organizational efficiency as a whole. Clear procedures toward goals are also very important for employee and team performance, because process clarity provides clearer and more active plans and visible strategies to achieve the goal. Empirical evidences reveal that poor or incomplete definition of the work content of a role, unclear relationships between roles, overlapping work boundaries, or inappropriate authority causes confusion and uncertainty and will ultimately result in poor performance, poor morale or conflict. Role clarity extends beyond the tasks in the position description and it includes the broader accountabilities of all employees on how they are to work with their manager, their team and others in the organization. Clarity on how people work together is about understanding roles and respecting those roles. It is with clarity that individuals, teams and the organization can work together to perform their work (Onuoha et al., 2016). H3: Process clarity has positive significant effect on performance of higher educational institutions 2.4.2.3. Role clarity and organization performance. Role clarity is the degree to which employees have a clear perception of their role expectations and actions. If roles are not clear, employees avoid their job responsibilities which lead to tension and make it difficult to achieve strategic goals or exerting a negative effect on organizational performance. Clarity on the tasks to be performed relates to how organizations define, align and cascade their work, including their strategic goals (Al Khalifa, 2016). This requires every manager at every level to provide. It mainly concerned with clarity about what is expected and the boundaries within which they must work. Role clarity create shared understanding of the work to be performed in an organization (Ghonim et al., 2020). It mainly dealing with clarity in role design, clarity in direction and clarity in assigned task. H4: Role clarity has positive significant effects on performance of higher educational institutions Gede & Huluka, Cogent Business & Management (2023), 10: 2247873 https://doi.org/10.1080/23311975.2023.2247873 Page 5 of 17 3. Conceptual framework For this study, the relations between constructs were depicted by measurement and structural models between latent and observed variables as well as relation between two latent variables. The study has two latent constructs (strategic alignment and organizational performance) with three by three observed variables. Strategic alignment construct represented by three observed variables as goal clarity, role clarity and process clarity. Organizational performance construct represented by indicators like quality in service, quality of research output and competency in graduate students. For each latent variable there are questions that indicated by single line on graph in figure 1 represents the relation between independent and dependant variables of study with their respective indicators. Where SA represent strategic alignment GC >> Goal clarity PC >> Process clarity RC >> Role clarity OP >> Organizational performance QS >> Quality in service (Service quality) QRO >> Quality in research out put CGS >> Competency of graduate students Σ >> Error 4. Methodology Quantitative research approach with both descriptive and explanatory study design was employed. To explain the nature and characteristics of the units in the sample, a descriptive study design was adopted. The influence of strategic alignments on organizational performance was investigated using an explanatory design. Using their generational and excellence classifications, three universities were chosen. The target population comprised universities that fall under the first, second, and third classes based on generation and the research, applied, and comprehensive classifications based on excellence. Three universities from both classes were purposefully chosen based on proximity and locational convenience for researcher. This leads to the selection of Hawasa from the first and research domain, Wolaita Sodo from the second and applied domain, and Bule Hora from the third and comprehensive domain. The study’s population reflects the combined numbers of academic and Figure 1. Conceptual framework. Gede & Huluka, Cogent Business & Management (2023), 10: 2247873 https://doi.org/10.1080/23311975.2023.2247873 Page 6 of 17 administrative staff at those three universities. Table 1 shows the stratified target population of the study according to the human resource data of the three universities. Because of the nature of the study, employees who cannot be governed by local or conventional human resource policies and practices were excluded. As a result, all expatriate and temporary employees were excluded from sampling frame. Because of the size of target population; Rosenheim and Hoy (1989) formula is preferred to be employed to determine sample size and 376 employees were selected as a sample from three Universities with proportional sample size from each University with total population they have. Proportional quota sampling was applied in each university based on the 4-pillars of university good governance, teaching and learning, research and communities services. Accordingly, 25% quota for administrative staff and 75% quota were given for academic staff. Simple random sampling technique was employed to select sample from both wings. Data were collected with 5-point Likert scale and open ended questions. Likert scale question is preferred because of its ability to reduce the risks of an expression of opinion by respondents being influenced by their opinion on only one or two aspects of that situation. Among the Likert scale types, five points scale questions were used because of its simplicity to be understood by both survey administrator and respondents. Accordingly sample size selection in each university was made based on proportional rate as follows. Data were analyzed using both descriptive and structural equation model. Descriptive statistics such as mean and standard deviation were employed, whereas, confirmatory factor analysis and path analysis were used for structural equation model. 4.1. Model specification Model specification involves determination of relationships between variables and number of parameters interested to the researcher in the model (Khine, 2013). Since model specification is about explaining parameters included or excluded in the model with respective relationships among the variables, researcher tried to enumerate parameters included in this study with their respective relationships. While the objective of a study is to examine a relationship between independent and dependent variable, there is a need to model the theorized relationship to test it with the empirical data from the fields: When Y= Overall organizational performance ß0= Constant values of regression ß1–3= unstandardized Beta coefficients Σ = Error 4.2. Validity and reliability Scale questions used for data collection were checked for the pattern of the responses given from participants (unidimensionality) using item-to-rest correlation. All scale items used for data collection for this article have item-to-rest correlation coefficients greater than 0.3 which is acceptable level as per rule of thumb. Reliability of instruments used for data collection was checked using Cronbach’s alpha values and approved that data is highly reliable with Cronbach’s Alpha value of 0.895. Content validity of instruments was checked with peer review and also questions were given for senior researchers and professors and approved. Validity and reliability of instruments were further checked and approved using confirmatory factor analysis. Gede & Huluka, Cogent Business & Management (2023), 10: 2247873 https://doi.org/10.1080/23311975.2023.2247873 Page 7 of 17 The result of this study reveals that organizational performance varies among the institution based on strategic alignment implementation level. In the institution that have good implementation of strategic alignment in the form of clarity in the goal, role and process; there is higher organizational performance level. Accordingly, Wolaita Sodo University has relatively higher performance achievement than two Universities Hawasa and Bule Hora. Low-performance achievement was recorded in Bule Hora University both at strategic alignment implementation level and organizational performance. Findings reveal that there is logical connectivity between strategic alignment and organizational performance as it observed from all three universities. It reflected through that in the University where implementation level of strategic alignment is good; organizational performance also good and performance is low where strategic alignment implementation is lower. This finding contradicting with findings of Smith and Thomas (2020). The authors conducted their study on the title effects of strategic alignment and clarity and found out that strategy consistent performance improves with alignment when the strategic statement is vague. But it has conformity with the findings of Ghonim et al. (2020) that reveal strategic alignment significantly and positively affects decision effectiveness which in turn enhances organizational performance. Previous empirical literature reveal that the concept of strategic alignment involves the idea of achieving a degree of compatibility and harmony among a range of organizational elements that ensures achievement of the strategic priorities of the organization (Alkarabsheh et al., 2022; Visinescu et al., 2017). Keeping the fit between employees’ understanding and action with that of organizational strategic priorities enhances response to environmental pressures and moves toward a higher level of performance (Chi et al., 2020). The results of our study confirm these empirical evidences. Descriptive analysis of this study reveals that application of strategic alignment in the form of Goal clarity; role clarity and process clarity in Ethiopian higher educational institutions are at moderate level with average mean of response rates around 3.00 with slight difference among variables. But overall applications among the institutions have differences including organizational performances. The results of structural path analysis show that the sum total effects of strategic alignment on organizational performance accounts more than 67% in the variance of performance. The effects of individual variables representing strategic alignment are higher for goal clarity which accounts around 22% of variation in organizational performance, whereas, the effects of clarity in the role is higher than process clarity which has 21%. Process clarity has around 12% share of effects on organizational performance. All variables have positive effects as improvements in those variables lead to higher performance in organization. 6.1. Conclusion and implication of the study The major aim of this study was investigation of effect of strategic alignment on organizational performance. Organizational performance is the sum total effort of individual and team works towards organization goal achievement. Effectiveness of individual and team performance determined by knowledge they have about the goal and intended organizational strategies. Clarity in the goal with specified tasks and procedures enhances employee moral to perform well. Therefore, investigation of strategic alignment in public institutions and effects on organization performance is important to improve effectiveness in goal achievement. From the result of the study, researchers conclude that all three variables identified to examine effect of strategic alignment on organizational performance have significant relation with dependent variable. In general, researchers concluded that clarity in the goal, clarity in the role assigned to and clarity in process how to perform assigned task have significant effects on organizational performance. Study concluded that performance variation among public higher educational institutions is result of variability in strategic clarity. This finding has practical managerial implication by indicating significance of clarity in goal, role and process for performance improvement. This Gede & Huluka, Cogent Business & Management (2023), 10: 2247873 https://doi.org/10.1080/23311975.2023.2247873 Page 14 of 17 study shows managers how clarity of goal and tasks for employees is a key for management function and help to insure higher level of performance. Clarity in the goal to be achieved and specification in the tasks to be performed with clear procedure enhances employee motivation to be dedicated for organization. Employee dedication has positive implication on performance. Scholars in this area suggests that organizations should strive constantly to enhance role clarity among employees as they remain motivated and involved in their jobs and exhibit innovative behavior at work (Alkarabsheh et al., 2022; Kundu et al., 2021; Lynn & Kalay, 2015; Mehboob & Hina, 2011; Onuoha et al., 2016; Park & Choi, 2020). This study has practical implication as it show the way how to attain strategic priority of organization through employee motivation with strategic clarity. It indicates strategic communication between administrators and staffs. Our study result has managerial implication of how become proactive leader than reactive decision makers. Strategic alignment open the room for employees to learn more about organizational policy and direction and initiate them for innovation (Al-Shami et al., 2022). This study has implication for contingency and goal setting theories. Study result supports contingency theory stating fitness between parts in organization enhance performances. It also confirm statements of goal setting theory saying participatory goal setting is means through which performance is improved. Study result shows clarity in the goal improve performance. Findings of this study enrich management literature with regard to the concepts of study. 6.2. Limitation and suggestion for future researchers This study was limited to higher educational institutions in Ethiopia. Further researchers need to widen geographical and institutional scope to include other country or other sectors. For this article only quantitative data was employed to analyze application level of strategic alignment and to examine the effects of strategic alignment on organization performance. Further researchers need to include qualitative information for further conformity of the findings. This study limited only to strategic clarity dimension of strategic alignment as goal, role and process clarity. Further study should include other dimensions. For this study one time survey cross-sectional data were used. Therefore, other researchers can use longitudinal design. Author details Dawit Udessa Gede 1 E-mail: [email protected] ORCID ID: http://orcid.org/0000-0003-2032-016X Admasu Tesso Huluka 2 ORCID ID: http://orcid.org/0000-0002-1946-0977 1 Department of Management, College of Business and Economics, Bule Hora University, Bule Hora, Ethiopia. 2 Department of development economic College of Finance, Management and Development Ethiopian Civil Service University, Addis Ababa, Ethiopia. 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