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In this study we conceptualize strategic information technology (IT) alignment as a two-way relationship where business strategy influences IT, and IT influences business strategy. This implies that a multidimensional rather than the traditional unidimensional conceptualization of strategic IT alignment is appropriate. To validate this approach we develop and test a new multidimensional measure that captures the first-order effects of IT alignment at the process-level, where they are expected to be realized. We test the model using survey data from 94 companies that span three countries ─ US, Australia and Germany. Results reveal that the multidimensional measure of strategic IT alignment is a better predictor of both business unit agility and performance than the unidimensional measure of strategic IT alignment.