A SYSTEMATIC LITERATURE REVIEW OF STRATEGIC ALIGNMENT OF INFORMATION TECHNOLOGY AND BUSINESS GOALS IN SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs)

Abstract

The strategic alignment of Information Technology (IT) with business goals is a critical driver of competitiveness, particularly for Small and Medium Enterprises (SMEs), which face unique structural, financial, and cultural constraints. While extensive research exists on IT-business alignment in large enterprises, SMEs remain underexplored, with fragmented insights across sectors and contexts. This systematic literature review (SLR) addresses this gap by synthesizing empirical evidence on the barriers, industry-specific dynamics, and cultural enablers influencing IT-business alignment in SMEs. Using the PRISMA framework, 48 peer-reviewed studies published between 2004 and 2024 were analyzed through thematic synthesis to identify recurring patterns and contradictions. Findings reveal that resource limitations, weak governance, communication gaps, and organizational resistance are persistent barriers, while collaborative leadership, agile methodologies, and cross-functional culture emerge as key enablers. Notably, sector-specific factors such as regulatory demands and technological readiness significantly shape alignment strategies, yet remain under-researched. This SLR contributes to theory by proposing a context-sensitive alignment model for SMEs and identifies critical research gaps, particularly in developing economies and emerging technologies. Practical implications include recommendations for SME leaders to adopt flexible IT governance, continuous skill development, and cultural transformation. Future research should employ qualitative case studies to explore alignment mechanisms in diverse SME ecosystems.