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The aim of this paper is to explore the role of operational proactiveness with respect to achieving functional alignment and enhancing business performance. Using data from the retail banking industry, we investigate how operational proactiveness impacts strategic alignment and business performance. Results show that the operational proactiveness contributes to business performance through enhanced strategic alignment. Additionally, with assistance from a panel of experts, outcomes of the study were subjected to a reality check in order to develop managerial guidelines for operationalizing the findings of this research.