Towards a deeper understanding of information technology governance effectiveness: A capabilities-based approach

Prasad, A., Heales, J. and Green, P. (2009). Towards a deeper understanding of information technology governance effectiveness: A capabilities-based approach. In: Proceedings of the University of Waterloo Research Symposium on Information Integrity and Information Systems Assurance. University of Waterloo Centre for Information Integrity & Information Systems Assurance 6th Bi-Annual Research Symposium, Toronto, Canada, (1-45). 1-3 October, 2009.


Author Prasad, A.
Heales, J.
Green, P.
Title of paper Towards a deeper understanding of information technology governance effectiveness: A capabilities-based approach
Conference name University of Waterloo Centre for Information Integrity & Information Systems Assurance 6th Bi-Annual Research Symposium
Conference location Toronto, Canada
Conference dates 1-3 October, 2009
Proceedings title Proceedings of the University of Waterloo Research Symposium on Information Integrity and Information Systems Assurance
Place of Publication Conference website
Publisher University of Waterloo Centre for Information Integrity & Information Systems Assurance
Publication Year 2009
Year available 2009
Sub-type Fully published paper
Start page 1
End page 45
Total pages 45
Collection year 2010
Language eng
Abstract/Summary Given the substantial investment in information technology (IT), and the significant impact it has on organizational success, considerable organizational resources are consumed to manage how IT is acquired and used in organizations. While, various arguments have been put forward to suggest which IT governance arrangements may work best, the effectiveness of such initiatives is not well understood. Specifically, while current arguments postulate that it is the firms IT-related capabilities that explain performance differences across firms, the relationship between firms IT governance initiatives and these capabilities is not well understood. Thus, we examine the relationship between the effectiveness of IT steering committee-driven IT governance initiatives and firm’s IT management and IT infrastructure related capabilities. We further propose that firm’s IT-related capabilities, generated through IT governance initiatives should improve its business processes and firm-level performance. We test these relationships empirically by a field survey of 216 firms. Results of this study suggest that a firms’ effectiveness of IT steering committee-driven IT governance initiatives are positively related to the level of their IT-related capabilities. We also found positive relationships between IT-related capabilities and internal process-level performance. Our results also support the conjecture that improvement in internal process-level performance will be positively related to improvement in customer service and firm-level performance. For researchers, we have demonstrated that the resource-based theory provides a more robust explanation of the determinants of firms IT governance initiatives, and would be ideal in evaluating other IT governance initiatives effectiveness in relation to how they contribute to building performance-differentiating IT-related capabilities. For decision makers, we hope our study has reiterated the notion that IT governance is truly a coordinated effort, embracing all levels of human resources.
Subjects 080609 Information Systems Management
970108 Expanding Knowledge in the Information and Computing Sciences
EX
Keyword IT Governance, IT Steering Committees, IT-Related Capabilities, Internal Process-Level Performance, Improvement in Customer Service, Firm-Level Performance
Q-Index Code EX
Q-Index Status Provisional Code

Document type: Conference Paper
Collection: UQ Business School Publications
 
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Created: Wed, 07 Apr 2010, 14:20:24 EST by Karen Morgan on behalf of UQ Business School