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Is board IT governance a silver bullet? A capability complementarity and shaping view

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  • Turel, Ofir
  • Liu, Peng
  • Bart, Chris

Abstract

This article examines how the impact of Information technology (IT) governance by the board of directors on firms' financial performance can be mediated through IT operating capabilities, and how such board IT governance (B-ITG) can modulate the influence of IT operating capability on financial performance. Findings based on a survey of 89 corporate directors indicate that both B-ITG and IT operating capability increase financial performance. They further point to complex B-ITG effects on financial performance, including complementarity with and shaping IT operating capability. They show that high B-ITG suppresses the effect of IT operating capability on financial performance and that B-ITG effects on financial performance are partially mediated through IT operating capability.

Suggested Citation

  • Turel, Ofir & Liu, Peng & Bart, Chris, 2019. "Is board IT governance a silver bullet? A capability complementarity and shaping view," International Journal of Accounting Information Systems, Elsevier, vol. 33(C), pages 32-46.
    • Handle: RePEc:eee:ijoais:v:33:y:2019:i:c:p:32-46
    DOI: 10.1016/j.accinf.2019.03.002
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