scholarly journals Impact of Information Technology (IT) governance on firm business value: the role of business-it alignment and IT investment performance

2021 ◽  
Vol 15 (2) ◽  
pp. 38
Author(s):  
Aboobucker Ilmudeen
Author(s):  
Aboobucker Ilmudeen

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.


Author(s):  
Jens Mosthaf ◽  
Heinz-Theo Wagner

The importance of alignment between business and information technology (IT) for generating IT business value has been emphasized in many research papers. Current literature broadly supports that capable and sustainable enterprise architecture is essential to support business processes as well as future agility. In that respect, individuals performing the role of an enterprise architect are at the core of the interface between business and IT and their relationship with the business side is crucial to generate IT business value. Employing a qualitative study, the authors show that competencies such as profound work experience and business-related topics serves to bridge the IT-business gap and may foster alignment. This result contributes to alignment and governance literature as it emphasizes an individual level antecedent of business-IT alignment.


Author(s):  
Hashim Chunpir ◽  
Frederik Schulte ◽  
Yannick Bartens ◽  
Stefan D. Voß

Business/IT (information technology) alignment can be considered as one of the key challenges of information management (IM). A vast majority of studies assumes a unidirectional alignment process that seeks to link the IT strategies to superior business objectives. However, there are plenty of market situations where the ability of an enterprise, or even entire branches, to adjust their business model to new IT developments is crucial to survive among their competitors. Under the umbrella of new buzz words like digital transformation and digital transition and their glaring examples such as media streaming, these competitive requirements have recently become more vital. Currently dominant business-driven alignment paradigms are seemingly not capable of accommodating these requirements to a full extent. In this chapter, the concept of bi-directional business/IT alignment is explained and defined by extending a well-known three-layer model of IM. Furthermore, different IM models as well as common IT governance frameworks are analyzed to find the extent to which they support this paradigm.


Author(s):  
Aboobucker Ilmudeen

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.


2020 ◽  
pp. 1123-1146
Author(s):  
Yannick Bartens ◽  
Hashim Iqbal Chunpir ◽  
Frederik Schulte ◽  
Stefan Voß

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.


Author(s):  
Roberto Santana Tapia ◽  
Pascal van Eck ◽  
Maya Daneva ◽  
Roel Wieringa

Business-IT alignment is a crucial concept in the understanding of how profit-and-loss organizations use Information Technology (IT) to support their business requirements. This alignment concept becomes tangled when it is addressed in a socio-political context with non-financial goals and political agendas between independent organizations, i.e., in governmental settings. Collaborative problem-solving and coordination mechanisms are enabling government agencies to deal with such a complex alignment. In this chapter, the authors propose to consider four key domains for successful business-IT alignment in cross-governmental partnerships: partnering structure, IS architecture, process architecture, and coordination. Their choice of domains is based on three case studies carried out in cross-governmental partnerships, in Mexico, The Netherlands, and Canada, respectively. The business-IT alignment domains presented in this chapter can guide cross-governmental partnerships in their efforts to achieve alignment. Those domains are still open to further empirical confirmation or refutation. Although much more research is required on this important topic for governments, the authors hope that their study contributes to the pool of knowledge in this relevant research stream.


2020 ◽  
Vol 14 (7) ◽  
pp. 75
Author(s):  
Hamzeh Mohamed Al-Hawamdeh

The current study aimed to identify the intermediate role of organizational flexibility in the impact of using information technology on the efficiency of the application of IT governance in Jordanian industrial companies, the study population consisted of all Jordanian industrial companies which by the end of 2019 were (56) company. (23) company were excluded due to the lack of access to the necessary data for the study, bringing the study sample size to (33) company. Due to the small size of the study sample, all companies were taken with a comprehensive survey, and a random stratified sample was adopted to determine the size of the study sample in each company. Where the inspection unit included individuals working in the upper and middle administrative levels in Jordanian industrial companies. Multiple linear correlation test was used along with simple and gradient test , as well as Path Analysis using (Amos) And supported by the Statistical Package for Social Sciences (SPSS) program, the study reached many results, the most important of which was an indirect impact of the dimensions of the use of (information technology) combined ; in the efficiency of the application of IT governance with the presence of organizational flexibility as an intermediate variable among Jordanian industrial companies, as for the recommendations, it is necessary to find an organizational consistency between the uses of information technology in light of the use of COBIT 5 applications and guidelines in the presence of organizational flexibility, because it will help to adapt to unexpected crises and invest Opportunities for industrial companies at the local and global levels.


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