Information technology alignment and employee performance in the private service sector in Uganda: a case of UMEME (U) Limited Central Uganda.

Abstract

The study aimed to establish the link between IT alignment practices, operating environment, and employee performance at Umeme Uganda Limited. Employing a cross-sectional design with qualitative and quantitative approaches to data collection, the researcher gathered data through questionnaires and interviews from staff of Umeme (U) Ltd. With data obtained from 165 usable questionnaires, the study employed Statistical Programmed for Social Scientists (SPSS) to test ten hypotheses. It also used thematic methodology to interpret qualitative data. Qualitative data was used to support quantitative findings. Exploratory Factor Analysis (EFA) identified IT alignment practices in Umeme Limited as IT Governance, IT Investment, and IT Implementation. Results also confirmed a significant positive relationship between information technology alignment (ITA) and employee performance at Umeme (U) Limited. Additionally, the study found the operating environment to moderate the IT Alignment – employee performance relationship at Umeme (U) Limited in Central Uganda. Recommendations were put forth, emphasizing the importance of detailed IT governance knowledge for efficiency, cost optimization, and improved service quality. Furthermore, it was recommended that Umeme's management should consistently facilitate Transformational IT Alignment, promoting collaboration, collective decision-making, commitment, time management, creativity, and digital work. These factors, including support for novel ideas, were seen as key for enhancing employee performance. The research offered insights into effective IT governance, highlighted the benefits of Transformational IT Alignment, and proposed the Information Technology Alignment Innovative Preference Model [ITAIP] model for enduring improvements in employee performance through supportive IT practices.