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Effective information technology (IT) governance mechanisms: An IT outsourcing perspective

Author

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  • Syaiful Ali

    (Universitas Gadjah Mada)

  • Peter Green

    (University of Queensland)

Abstract

Effective IT governance will ensure alignment between IT and business goals. Organizations with ineffective IT governance will suffer due to poor performance of IT resources such as inaccurate information quality, inefficient operating costs, runaway IT project and even the demise of its IT department. This study seeks to examine empirically the individual IT governance mechanisms that influence the overall effectiveness of IT governance. Furthermore, this study examines the relationship of effective IT governance, the extent of IT outsourcing decisions within the organizations, and the level of IT Intensity in the organizations. We used structural equation modeling analysis to examine 110 responses from members of ISACA (Information Systems and Audit Control Association) Australia in which their organizations have outsourced their IT functions. Results suggest significant positive relationships between the overall level of effective IT governance and the following mechanisms: the involvement of senior management in IT, the existence of ethic or culture of compliance in IT, and corporate communication systems.

Suggested Citation

  • Syaiful Ali & Peter Green, 2012. "Effective information technology (IT) governance mechanisms: An IT outsourcing perspective," Information Systems Frontiers, Springer, vol. 14(2), pages 179-193, April.
    • Handle: RePEc:spr:infosf:v:14:y:2012:i:2:d:10.1007_s10796-009-9183-y
    DOI: 10.1007/s10796-009-9183-y
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    Cited by:

    1. Shazia Sadiq & Michael Muehlen & Marta Indulska, 2012. "Preface," Information Systems Frontiers, Springer, vol. 14(2), pages 119-121, April.
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    3. Saida Harguem & Karim Ben Boubaker & Houcine Echatti, 2022. "Information Technology Governance in the Tunisian Banking Industry: An Exploratory Study," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 11, May.
    4. 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.
    5. 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.
    6. Jolanta Sloniec, 2021. "A Longitudinal Analysis of IT Outsourcing in Large Polish Organizations," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 439-452.
    7. Harman Preet Singh & Hilal Nafil Alhulail, 2023. "Information Technology Governance and Corporate Boards’ Relationship with Companies’ Performance and Earnings Management: A Longitudinal Approach," Sustainability, MDPI, vol. 15(8), pages 1-24, April.
    8. Sojung Lucia Kim & Thompson S.H. Teo & Anol Bhattacherjee & Kichan Nam, 0. "IS auditor characteristics, audit process variables, and IS audit satisfaction: An empirical study in South Korea," Information Systems Frontiers, Springer, vol. 0, pages 1-15.
    9. Sojung Lucia Kim & Thompson S.H. Teo & Anol Bhattacherjee & Kichan Nam, 2017. "IS auditor characteristics, audit process variables, and IS audit satisfaction: An empirical study in South Korea," Information Systems Frontiers, Springer, vol. 19(3), pages 577-591, June.
    10. Daria Arkhipova & Giovanni Vaia & William DeLone & Carolina Braghin, 2016. "IT Governance in the Digital Era," Working Papers 12, Department of Management, Università Ca' Foscari Venezia.
    11. Kanika Goel & Wasana Bandara & Guy Gable, 2023. "Banking the Unbanked: Conceptualizing Success of the Business Correspondent Model," Information Systems Frontiers, Springer, vol. 25(5), pages 1953-1984, October.
    12. Fouad Amiri & Sietse Overbeek & Gerard Wagenaar & Christoph Johann Stettina, 2021. "Reconciling agile frameworks with IT sourcing through an IT sourcing dimensions map and structured decision-making," Information Systems and e-Business Management, Springer, vol. 19(4), pages 1113-1142, December.
    13. Anastasia Papazafeiropoulou & Konstantina Spanaki, 2016. "Understanding governance, risk and compliance information systems (GRC IS): The experts view," Information Systems Frontiers, Springer, vol. 18(6), pages 1251-1263, December.
    14. Remco Dijkman & Sander Vincent Lammers & Ad Jong, 2016. "Properties that influence business process management maturity and its effect on organizational performance," Information Systems Frontiers, Springer, vol. 18(4), pages 717-734, August.
    15. Joseph Vithayathil & Vidyanand Choudhary, 2022. "Organizational Structure for the IT Department: Profit Center or Cost Center?," Information Systems Frontiers, Springer, vol. 24(6), pages 2053-2076, December.
    16. David Henriques & Ruben Pereira & Rafael Almeida & Miguel Mira da Silva, 2020. "IT Governance Enablers," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 14(1), pages 48-59.
    17. Jolanta Sloniec, 2021. "The Level of Outsourced Tasks in IT and its Dependence on Selected Explanatory Factors," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 152-167.
    18. Inha Oh & Jungho Kim, 2023. "Frontiers and laggards: Which firms benefit from adopting advanced digital technologies?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 753-766, March.
    19. Chulhwan Chris Bang, 2015. "Information systems frontiers: Keyword analysis and classification," Information Systems Frontiers, Springer, vol. 17(1), pages 217-237, February.
    20. Zhen, Jie & Xie, Zongxiao & Dong, Kunxiang, 2021. "Impact of IT governance mechanisms on organizational agility and the role of top management support and IT ambidexterity," International Journal of Accounting Information Systems, Elsevier, vol. 40(C).
    21. Saida Harguem, 2021. "A Conceptual Framework on IT Governance Impact on Organizational Performance: A Dynamic Capability Perspective," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 10, January.
    22. Ibrahim M. Menshawy & Rohaida Basiruddin & Raihana Mohdali & Nazahan Qahatan, 2022. "Board Information Technology Governance Mechanisms and Firm Performance among Iraqi Medium-Sized Enterprises: Do IT Capabilities Matter?," JRFM, MDPI, vol. 15(2), pages 1-21, February.
    23. Mojtaba Ashja & Akram Hadizadeh Moghadam & Hamid Bidram, 2015. "Comparative study of large information systems’ CSFs during their life cycle," Information Systems Frontiers, Springer, vol. 17(3), pages 619-628, June.
    24. Gonzalez, Reyes & Gasco, Jose & Llopis, Juan, 2016. "Information systems contracts and relationships: A Spanish perspective," Journal of Business Research, Elsevier, vol. 69(5), pages 1696-1700.

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