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

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  • 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
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    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. 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.
    3. Habib Saragih, Arfah & Ali, Syaiful & Suwardi, Eko & Utomo, Hargo, 2024. "Finding the missing pieces to an optimal corporate tax savings: Information technology governance and internal information quality," International Journal of Accounting Information Systems, Elsevier, vol. 52(C).
    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. 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.
    6. 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.

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