IDEAS home Printed from https://ideas.repec.org/a/eee/ijoais/v18y2015icp1-25.html
   My bibliography  Save this article

Information technology investment governance: What is it and does it matter?

Author

Listed:
  • Ali, Syaiful
  • Green, Peter
  • Robb, Alastair

Abstract

While the growth in the number of IT investments remains strong, research in the IT investment field is limited, resulting in suboptimal practical guidance on effectively governing IT investments. Based on resource-based theory, this paper reports the initial work involved in developing a construct named IT investment governance (ITIG), because it can be used to measure organizations' capability to govern their IT investments. This paper then empirically examines the association of ITIG and corporate performance. The preliminary result is a four-factor, 16-item instrument for assessing the ITIG construct. This method's factors are IT investment value governance, IT investment value monitoring, IT investment appraisals and IT investment project management. The impact of ITIG on corporate performance was demonstrated with a significant and positive relationship found to exist between the ITIG construct and corporate performance, thus supporting the effectiveness of the ITIG construct. Corporations with higher levels of ITIG capability are more likely to maximize the contribution of their IT investments to firm value.

Suggested Citation

  • Ali, Syaiful & Green, Peter & Robb, Alastair, 2015. "Information technology investment governance: What is it and does it matter?," International Journal of Accounting Information Systems, Elsevier, vol. 18(C), pages 1-25.
    • Handle: RePEc:eee:ijoais:v:18:y:2015:i:c:p:1-25
    DOI: 10.1016/j.accinf.2015.04.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1467089515300063
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.accinf.2015.04.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    2. Jarvis, Cheryl Burke & MacKenzie, Scott B & Podsakoff, Philip M, 2003. "A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 199-218, September.
    3. Grover S. Kearns, 2004. "A Multi-Objective, Multi-Criteria Approach for Evaluating IT Investments: Results from Two Case Studies," Information Resources Management Journal (IRMJ), IGI Global, vol. 17(1), pages 37-62, January.
    4. Susan A. Sherer & Rajiv Kohli & Ayelet Baron, 2003. "Complementary Investment in Change Management and IT Investment Payoff," Information Systems Frontiers, Springer, vol. 5(3), pages 321-333, September.
    5. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    6. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    7. Sherry D. Ryan & Michael S. Gates, 2004. "Inclusion of Social Subsystem Issues in IT Investment Decisions: An Empirical Assessment," Information Resources Management Journal (IRMJ), IGI Global, vol. 17(1), pages 1-18, January.
    8. Sinan Aral & Peter Weill, 2007. "IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation," Organization Science, INFORMS, vol. 18(5), pages 763-780, October.
    9. Kim Maes & Steven De Haes & Wim Van Grembergen, 2012. "IT Value Management as a Vehicle to Unleash the Business Value from IT Enabled Investments: A Literature Study," International Journal of IT/Business Alignment and Governance (IJITBAG), IGI Global, vol. 3(1), pages 47-62, January.
    10. Ram Kumar & Haya Ajjan & Yuan Niu, 2008. "Information Technology Portfolio Management: Literature Review, Framework, and Research Issues," Information Resources Management Journal (IRMJ), IGI Global, vol. 21(3), pages 64-87, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adilson Carlos Yoshikuni & Rajeev Dwivedi & Ronaldo Gomes Dultra-de-Lima & Claudio Parisi & José Carlos Tiomatsu Oyadomari, 2023. "Role of Emerging Technologies in Accounting Information Systems for Achieving Strategic Flexibility through Decision-Making Performance: An Exploratory Study Based on North American and South American," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(2), pages 199-218, June.
    2. Syaiful Ali & Peter Green & Alastair Robb & Adi Masli, 2022. "Governing information technology (IT) investment: A contingency perspective on organization’s IT investment goals," Australian Journal of Management, Australian School of Business, vol. 47(1), pages 3-23, February.
    3. Márcia Cristina Machado & Tereza Cristina Melo de Brito Carvalho, 2021. "Maturity Models and Sustainable Indicators—A New Relationship," Sustainability, MDPI, vol. 13(23), pages 1-24, November.
    4. Emilio Abad-Segura & Mariana-Daniela González-Zamar, 2020. "Research Analysis on Emerging Technologies in Corporate Accounting," Mathematics, MDPI, vol. 8(9), pages 1-29, September.
    5. Leandro Peçanha De Souza & Carlos Francisco Simões Gomes & Alexandre Pinheiro De Barros, 2018. "Implementation of New Hybrid AHP–TOPSIS-2N Method in Sorting and Prioritizing of an it CAPEX Project Portfolio," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 977-1005, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gupta, Manjul & George, Joey F. & Xia, Weidong, 2019. "Relationships between IT department culture and agile software development practices: An empirical investigation," International Journal of Information Management, Elsevier, vol. 44(C), pages 13-24.
    2. Hauck, Jana & Suess-Reyes, Julia & Beck, Susanne & Prügl, Reinhard & Frank, Hermann, 2016. "Measuring socioemotional wealth in family-owned and -managed firms: A validation and short form of the FIBER Scale," Journal of Family Business Strategy, Elsevier, vol. 7(3), pages 133-148.
    3. Morteza Ghobakhloo & Masood Fathi, 2019. "Modeling the Success of Application-Based Mobile Banking," Economies, MDPI, vol. 7(4), pages 1-21, November.
    4. Hepola, Janne & Leppäniemi, Matti & Karjaluoto, Heikki, 2020. "Is it all about consumer engagement? Explaining continuance intention for utilitarian and hedonic service consumption," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    5. T. S. Ragu-Nathan & Monideepa Tarafdar & Bhanu S. Ragu-Nathan & Qiang Tu, 2008. "The Consequences of Technostress for End Users in Organizations: Conceptual Development and Empirical Validation," Information Systems Research, INFORMS, vol. 19(4), pages 417-433, December.
    6. Junwei Zheng & Guangdong Wu, 2018. "Work-Family Conflict, Perceived Organizational Support and Professional Commitment: A Mediation Mechanism for Chinese Project Professionals," IJERPH, MDPI, vol. 15(2), pages 1-23, February.
    7. Shikha Sharma & Sanjeev Kumar Sharma, 2016. "Team Resilience: Scale Development and Validation," Vision, , vol. 20(1), pages 37-53, March.
    8. Riham Al Aina & Tarik Atan, 2020. "The Impact of Implementing Talent Management Practices on Sustainable Organizational Performance," Sustainability, MDPI, vol. 12(20), pages 1-21, October.
    9. Braojos-Gomez, Jessica & Benitez-Amado, Jose & Javier Llorens-Montes, F., 2015. "How do small firms learn to develop a social media competence?," International Journal of Information Management, Elsevier, vol. 35(4), pages 443-458.
    10. Brocato, E. Deanne & Voorhees, Clay M. & Baker, Julie, 2012. "Understanding the Influence of Cues from Other Customers in the Service Experience: A Scale Development and Validation," Journal of Retailing, Elsevier, vol. 88(3), pages 384-398.
    11. María José González-López & María Carmen Pérez-López & Lázaro Rodríguez-Ariza, 2021. "From potential to early nascent entrepreneurship: the role of entrepreneurial competencies," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1387-1417, September.
    12. Tarchouna, Ameni & Jarraya, Bilel & Bouri, Abdelfettah, 2017. "How to explain non-performing loans by many corporate governance variables simultaneously? A corporate governance index is built to US commercial banks," Research in International Business and Finance, Elsevier, vol. 42(C), pages 645-657.
    13. Fakhraddin Maroofi, 2016. "Analyzing Companies Use of Information Technology Portfolio Management as an Aid to it Investments Management (Case Study)," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 6(9), pages 487-496, September.
    14. Ralph Foorthuis & Marlies Steenbergen & Sjaak Brinkkemper & Wiel A. G. Bruls, 2016. "A theory building study of enterprise architecture practices and benefits," Information Systems Frontiers, Springer, vol. 18(3), pages 541-564, June.
    15. Sun, Jonghak & Teng, James T.C., 2017. "The construct of information systems use benefits: Theoretical explication of its underlying dimensions and the development of a measurement scale," International Journal of Information Management, Elsevier, vol. 37(5), pages 400-416.
    16. Svante Andersson & Göran Svensson & Francisco‐Jose Molina‐Castillo & Carmen Otero‐Neira & John Lindgren & Niklas P. E. Karlsson & Hélène Laurell, 2022. "Sustainable development—Direct and indirect effects between economic, social, and environmental dimensions in business practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1158-1172, September.
    17. Bag, Surajit & Rahman, Muhammad Sabbir & Srivastava, Gautam & Chan, Hau-Ling & Bryde, David J., 2022. "The role of big data and predictive analytics in developing a resilient supply chain network in the South African mining industry against extreme weather events," International Journal of Production Economics, Elsevier, vol. 251(C).
    18. Soumya Ray & Sung S. Kim & James G. Morris, 2012. "Research Note ---Online Users' Switching Costs: Their Nature and Formation," Information Systems Research, INFORMS, vol. 23(1), pages 197-213, March.
    19. Hille, Patrick & Walsh, Gianfranco & Cleveland, Mark, 2015. "Consumer Fear of Online Identity Theft: Scale Development and Validation," Journal of Interactive Marketing, Elsevier, vol. 30(C), pages 1-19.
    20. Lee, Craig & Hallak, Rob, 2018. "Investigating the moderating role of education on a structural model of restaurant performance using multi-group PLS-SEM analysis," Journal of Business Research, Elsevier, vol. 88(C), pages 298-305.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ijoais:v:18:y:2015:i:c:p:1-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-accounting-information-systems/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.