IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v11y2021i2p21582440211016557.html
   My bibliography  Save this article

Does Governance in Information Technology Matter When It Comes to Organizational Performance in Pakistani Public Sector Organizations? Mediating Effect of Innovation

Author

Listed:
  • Amanat Ali
  • Shahid Iqbal
  • Syed Arslan Haider
  • Shehnaz Tehseen
  • Bilal Anwar
  • Mariam Sohail
  • Khalid Rehman

Abstract

Information technology governance (ITG) is recognized as a vital organizational ability to exploit opportunities for innovation and enhance organizational performance. However, the potential of ITG for public sector innovation and performance has not been fully grasped in Pakistani public sector organizations (PakPSOs). This study has presented an explanatory model to investigate the mediating effect of innovation in the relationship between ITG and organizational performance in PakPSOs. Partial least squares structural equation modeling (PLS-SEM)–based hierarchical component modeling approach has applied to analyze the model by taking sample data from 97 PakPSOs. The results revealed that ITG positively affected innovation and organizational performance. Innovation positively affected organizational performance. Innovation partially mediated the relationship between ITG and organizational performance. The study corroborates the strategic use of information technology (IT) to enhance innovation and organizational performance in this context. The study contributes to the existing knowledge base through a new theoretical model and promotes academic rigor. The results are also significant for the practice as they can help to achieve organizational performance in terms of operational efficiency, transparency in costs and results, planning and decision making, performance monitoring and control, and collaboration and synergy. The other countries operating in a similar environment can also take the benefit of this study.

Suggested Citation

  • Amanat Ali & Shahid Iqbal & Syed Arslan Haider & Shehnaz Tehseen & Bilal Anwar & Mariam Sohail & Khalid Rehman, 2021. "Does Governance in Information Technology Matter When It Comes to Organizational Performance in Pakistani Public Sector Organizations? Mediating Effect of Innovation," SAGE Open, , vol. 11(2), pages 21582440211, May.
    • Handle: RePEc:sae:sagope:v:11:y:2021:i:2:p:21582440211016557
    DOI: 10.1177/21582440211016557
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440211016557
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440211016557?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
    ---><---

    References listed on IDEAS

    as
    1. Adriano Olímpio Tonelli & Paulo Henrique Souza Bermejo & Pâmela Aparecida dos Santos & Larissa Zuppo & André Luiz Zambalde, 2017. "It governance in the public sector: a conceptual model," Information Systems Frontiers, Springer, vol. 19(3), pages 593-610, June.
    2. Anandhi S. Bharadwaj & Sundar G. Bharadwaj & Benn R. Konsynski, 1999. "Information Technology Effects on Firm Performance as Measured by Tobin's q," Management Science, INFORMS, vol. 45(7), pages 1008-1024, July.
    3. Csoto, Mihaly & Robert, Imre & Krasznay, Csaba & Merkovity, Norbert & Molnar, Szilard & Monda, Eszter & Nemeslaki, Andras & Ocskay, Gyula & Rab, Arpad & Rauch, Wolf & Sasvari, Peter & Major, Stella & , 2014. "ICT Driven Public Service Innovation," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 102717, July.
    4. Adriano Olímpio Tonelli & Paulo Henrique Souza Bermejo & Pâmela Aparecida dos Santos & Larissa Zuppo & André Luiz Zambalde, 0. "It governance in the public sector: a conceptual model," Information Systems Frontiers, Springer, vol. 0, pages 1-18.
    5. Mark C. Anderson & Rajiv D. Banker & Sury Ravindran, 2006. "Value Implications of Investments in Information Technology," Management Science, INFORMS, vol. 52(9), pages 1359-1376, September.
    6. Amel Attour & Sabine Chaupain-Guillot, 2020. "Digital Innovations in Public Administrations: Technological or Policy Innovation Diffusion?," Journal of Innovation Economics, De Boeck Université, vol. 0(1), pages 195-219.
    7. Ervi Cofriyanti & Achmad Nizar Hidayanto, 2013. "The relationship among organisations' factors, information technology, innovation and performance: an Indonesian SMEs study," International Journal of Innovation and Learning, Inderscience Enterprises Ltd, vol. 14(3/4), pages 422-443.
    8. Sarstedt, Marko & Hair, Joseph F. & Cheah, Jun-Hwa & Becker, Jan-Michael & Ringle, Christian M., 2019. "How to specify, estimate, and validate higher-order constructs in PLS-SEM," Australasian marketing journal, Elsevier, vol. 27(3), pages 197-211.
    9. Paul Windrum & Per Koch (ed.), 2008. "Innovation in Public Sector Services," Books, Edward Elgar Publishing, number 4030.
    10. Fariborz Damanpour & Kathryn A. Szabat & William M. Evan, 1989. "The Relationship Between Types Of Innovation And Organizational Performance," Journal of Management Studies, Wiley Blackwell, vol. 26(6), pages 587-602, November.
    11. Amrit Tiwana & Stephen K. Kim, 2015. "Discriminating IT Governance," Information Systems Research, INFORMS, vol. 26(4), pages 656-674, December.
    12. Amel Attour & Sabine Chaupain-Guillot, 2020. "Digital Innovations in Public Administrations: Technological or Policy Innovation Diffusion?," Post-Print hal-02536413, HAL.
    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. Muhammad Awais & Amanat Ali & Muhammad Sajid Khattak & Muhammad Irfanullah Arfeen & Muhammad Azam I. Chaudhary & Aleena Syed, 2023. "Strategic Flexibility and Organizational Performance: Mediating Role of Innovation," SAGE Open, , vol. 13(2), pages 21582440231, June.

    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. Guilherme C. Wiedenhöft & Edimara M. Luciano & Gabriela V. Pereira, 2020. "Information Technology Governance Institutionalization and the Behavior of Individuals in the Context of Public Organizations," Information Systems Frontiers, Springer, vol. 22(6), pages 1487-1504, December.
    2. Sunil Mithas & M. S. Krishnan & Claes Fornell, 2016. "Research Note—Information Technology, Customer Satisfaction, and Profit: Theory and Evidence," Information Systems Research, INFORMS, vol. 27(1), pages 166-181, March.
    3. Stoel, M. Dale & Muhanna, Waleed A., 2011. "IT internal control weaknesses and firm performance: An organizational liability lens," International Journal of Accounting Information Systems, Elsevier, vol. 12(4), pages 280-304.
    4. Kobelsky, Kevin & Hunter, Starling & Richardson, Vernon J., 2008. "Information technology, contextual factors and the volatility of firm performance," International Journal of Accounting Information Systems, Elsevier, vol. 9(3), pages 154-174.
    5. Elvin Shava & Shikha Vyas-Doorgapersad, 2022. "Fostering digital innovations to accelerate service delivery in South African Local Government," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 83-91, March.
    6. Laurin Buchheim & Alexander Krieger & Sarah Arndt, 2020. "Innovation types in public sector organizations: a systematic review of the literature," Management Review Quarterly, Springer, vol. 70(4), pages 509-533, November.
    7. Sunil Mithas & Jonathan Whitaker & Ali Tafti, 2017. "Information Technology, Revenues, and Profits: Exploring the Role of Foreign and Domestic Operations," Information Systems Research, INFORMS, vol. 28(2), pages 430-444, June.
    8. Ravi Thambusamy & Prashant Palvia, 2020. "U.S. Healthcare Provider Capabilities and Performance: the Mediating Roles of Service Innovation and Quality," Information Systems Frontiers, Springer, vol. 22(1), pages 91-111, February.
    9. Masli, Adi & Richardson, Vernon J. & Sanchez, Juan Manuel & Smith, Rodney E., 2011. "Returns to IT excellence: Evidence from financial performance around information technology excellence awards," International Journal of Accounting Information Systems, Elsevier, vol. 12(3), pages 189-205.
    10. Brian L. Dos Santos & Zhiqiang (Eric) Zheng & Vijay S. Mookerjee & Hongyu Chen, 2012. "Are New IT-Enabled Investment Opportunities Diminishing for Firms?," Information Systems Research, INFORMS, vol. 23(2), pages 287-305, June.
    11. Murali D. R. Chari & Sarv Devaraj & Parthiban David, 2008. "Research Note--The Impact of Information Technology Investments and Diversification Strategies on Firm Performance," Management Science, INFORMS, vol. 54(1), pages 224-234, January.
    12. Kibaek Lee & Jaeheung Yoo & Munkee Choi & Hangjung Zo & Andrew P Ciganek, 2016. "Does External Knowledge Sourcing Enhance Market Performance? Evidence from the Korean Manufacturing Industry," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-19, December.
    13. Jiatong Yu & Jiajue Wang & Taesoo Moon, 2022. "Influence of Digital Transformation Capability on Operational Performance," Sustainability, MDPI, vol. 14(13), pages 1-20, June.
    14. Carlos Bazan, 2022. "Effect of the University’s Environment and Support System on Subjective Social Norms as Precursor of the Entrepreneurial Intention of Students," SAGE Open, , vol. 12(4), pages 21582440221, October.
    15. Rajiv Kohli & Sarv Devaraj, 2003. "Measuring Information Technology Payoff: A Meta-Analysis of Structural Variables in Firm-Level Empirical Research," Information Systems Research, INFORMS, vol. 14(2), pages 127-145, June.
    16. Chang, Yuan-Chieh & Chen, Min-Nan, 2016. "Service regime and innovation clusters: An empirical study from service firms in Taiwan," Research Policy, Elsevier, vol. 45(9), pages 1845-1857.
    17. Rahila Huma Anwar & Sajida Zaki & Natasha Memon & Ramayah Thurasamy, 2021. "Exploring the Interplay of Trait Emotional Intelligence and ESL Teacher Effectiveness: Is Self-Efficacy the Mechanism Linking Them?," SAGE Open, , vol. 11(4), pages 21582440211, November.
    18. Tarcia Camily Cavalcante Quezado & Nuno Fortes & William Quezado Figueiredo Cavalcante, 2022. "The Influence of Corporate Social Responsibility and Business Ethics on Brand Fidelity: The Importance of Brand Love and Brand Attitude," Sustainability, MDPI, vol. 14(5), pages 1-20, March.
    19. Kwon, He-Boong & Lee, Jooh, 2019. "Exploring the differential impact of environmental sustainability, operational efficiency, and corporate reputation on market valuation in high-tech-oriented firms," International Journal of Production Economics, Elsevier, vol. 211(C), pages 1-14.
    20. Banker, Rajiv D. & Byzalov, Dmitri & Chen, Lei (Tony), 2013. "Employment protection legislation, adjustment costs and cross-country differences in cost behavior," Journal of Accounting and Economics, Elsevier, vol. 55(1), pages 111-127.

    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:sae:sagope:v:11:y:2021:i:2:p:21582440211016557. 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: SAGE Publications (email available below). General contact details of provider: .

    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.