The Role of IT Governance and Managing IT Investment on Firm Performance

2021 ◽  
pp. 104-120
Author(s):  
Aboobucker Ilmudeen
Keyword(s):  
Firm Performance ◽  
It Governance ◽  
It Investment ◽  
It Alignment ◽  
Governance Practices ◽  
Performance Context ◽  
Business It Alignment ◽  
Role Of It ◽  
It Practices

Although the multifaceted effects of managing or governing IT have been taken into consideration in both practice and theoretical debate, the mechanism through which these bring firm performance is yet unclear and limited. Drawing on the resource-based theory and the process theory, this chapter aims to systematically review the antecedents of business-IT alignment on the firm performance context. The findings of this study show that the business-IT alignment is derived from IT governance practices and managing IT investment to achieve firm performance. This study proposes that the firm performance cannot be attained by merely investing in IT; instead, firms should focus on effective management of IT practices and strategically align their business and IT strategies.

IT Governance and Business-IT Alignment Frameworks, Models, and the Best Practices

2021 ◽  
pp. 85-103
Author(s):  
Aboobucker Ilmudeen
Keyword(s):  
Best Practices ◽  
Investment Decision ◽  
It Governance ◽  
Business Organizations ◽  
It Investment ◽  
It Alignment ◽  
Investment Decision Making ◽  
Governance Practices ◽  
Business It Alignment ◽  
Almost All

Information technology (IT) has become a vital function, and almost all organizations depend on IT. The IT dependency causes the executives to use IT governance practices for the IT investment decision-making process. Organizations spend more on IT investments even those that are over budget, come under pressure, behind schedule, and are generating fewer paybacks than anticipated. Hence, business organizations are continuously examined and believed to be answerable for their IT investment more than ever. This chapter focuses on various IT governance and business-IT alignment frameworks, models, and best practices to discuss in this context.

scholarly journals Information Technology Investment

2009 ◽  
Vol 13 (3) ◽  
Author(s):  
Melinda K. Cline ◽  
Carl S. Guynes ◽  
Ralph Reilly
Keyword(s):  
Firm Performance ◽  
It Investment ◽  
Performance Impact ◽  
Technology Investment ◽  
Management Ability ◽  
Positive Performance ◽  
Definition Of ◽  
Role Of It ◽  
Mathematical Relationships

Much evidence regarding the relationship between IT investment and firm performance is contradictory. Numerous issues have been summarized and discussed as factors that contribute to the contradictory findings. While many researchers have found IT investments to have a positive performance impact, others have failed to support those findings. These contradictory findings concerning IT investment appear at the firm, industry, and national economy levels of analysis. There are four broad issues related to the role of IT within an organization that are factors contributing to the contradictory findings: structural business characteristics, management ability, definition of IT, and measurement approach. While there are many studies that use broad secondary indices and economic models to look for mathematical relationships between IT investment and firm performance, few studies take an in-depth look at the role of IT within an organization and expose the dynamics of this relationship.

Role of IT in IT Governance Practices Maturity Perspective

2019 ◽  
Author(s):  
Dimas Agung Saputra ◽  
Ifa Alif ◽  
Ridho Ahdiat Wijaya ◽  
Yudho Giri Sucahyo ◽  
Muhammad Kasfu Hammi
Keyword(s):  
It Governance ◽  
Governance Practices ◽  
Role Of It

Entrepreneurial IT Governance in a Rural Family Practice Residency Program

2011 ◽  
pp. 202-223
Author(s):  
Carla Wiggins ◽  
John C. Beachboard ◽  
Kenneth Trimmer ◽  
Lela “Kitty” Pumphrey
Keyword(s):  
Family Practice ◽  
Residency Program ◽  
It Governance ◽  
Healthcare Setting ◽  
Health Providers ◽  
Governance Framework ◽  
Rural Family ◽  
Governance Practices ◽  
Role Of It

This study describes and assesses the evolution of IT governance practices in a rural family practice residency program. The need to establish IT governance was driven by the practice’s desire to implement electronic medical records capability. The authors employed a prominent information technology (IT) governance framework to conduct this assessment and exposed significant strengths and weaknesses in terms of the suitability of the IT governance framework within the rural healthcare setting as described. Given the relatively slow adoption rates within the healthcare industry in general, and among rural health providers more specifically, we present local knowledge (Geertz, 1985). In doing so, we provide an additional perspective for those seeking to construct theoretical bases for the formulation of health policy intended to promote the adoption of IT as a means of improving healthcare in the rural United States. In addition, this chapter describes the role of IT in enabling the residency practice to embrace current practice improvement initiatives.

The impact of managing IT on business-IT alignment and firm performance: an empirical study

foresight ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aboobucker Ilmudeen
Keyword(s):  
Firm Performance ◽  
Study Finding ◽  
Strong Impact ◽  
Business Managers ◽  
It Investment ◽  
Content Type ◽  
It Alignment ◽  
Business It Alignment ◽  
The Impact ◽  
Practical Implications

Purpose Though prior studies have attempted to explore the various effects of managing information technology (IT) investment on firm performance, the mechanism through which management of IT impact on firm performance rests less clear. The purpose of this study is to examine the impact of managing IT and business-IT alignment on firm performance. Design/methodology/approach Drawing on the resource-based theory and process theory, this study examines how managing IT impacts business-IT alignment and firm performance. The primary survey of 182 responses from IT and business managers from Sri Lanka was empirically examined. Findings The findings reveal that managing IT has a positive and strong impact on business-IT alignment and firm performance. Further, business-IT alignment partially mediates between managing IT investment and firm performance relationships. Research limitations/implications Today, businesses have invested a massive amount of money in IT investment, and the return on this investment is always a serious concern for managers and industry practitioners. This study finding proposes meaningful insights on managing IT, business-IT alignment and firm performance. Originality/value This study opens up the black box on the above nomological linkage and contributes to the literature by extending the theoretical lenses while suggesting insightful and practical implications.

Business/IT Alignment in Two-Sided Markets

2020 ◽  
pp. 1123-1146
Author(s):  
Yannick Bartens ◽  
Hashim Iqbal Chunpir ◽  
Frederik Schulte ◽  
Stefan Voß
Keyword(s):  
Business Models ◽  
It Governance ◽  
Structural Description ◽  
Bottom Up ◽  
Governance Framework ◽  
It Alignment ◽  
Alignment Process ◽  
Directional Alignment ◽  
Business It Alignment ◽  
Two Sided Markets

Business/IT alignment can be considered a key challenge in IT governance and becomes especially important in IT-heavy and internet based business models. Recent discussions express the need for a bi-directional paradigm for internet based business models. IT governance frameworks support business/IT alignment but mostly follow a business-driven alignment paradigm. We identify characteristics of internet based business models and use the case of streaming to examine how the IT governance framework COBIT 5 can integrate these characteristics under consideration of a bi-directional business/IT alignment process. We reveal that requirements for streaming business models may not be fully covered by the framework. Based on a structural description of internet based business models and the COBIT 5 Goal Cascade, we explain these specific requirements and propose a possible integration of a bottom-up alignment. With this work we provide guidance in the challenge of business/IT alignment for internet based business models and show pathways for IT governance frameworks to better support a bi-directional alignment.

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