Analysing the Impact of Enterprise Governance of IT Practices on Business Performance

Steven De Haes and Wim Van Grembergen
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Steven De Haes: University of Antwerp – Antwerp Management School, Belgium
Wim Van Grembergen: University of Antwerp – Antwerp Management School, Belgium

International Journal of IT/Business Alignment and Governance (IJITBAG), 2010, vol. 1, issue 1, 14-38

Abstract: Enterprise governance of IT (EGIT) is about the definition and implementation of processes, structures and relational mechanisms that enable both business and IT people to execute their responsibilities in support of business/IT alignment and the creation of business value from IT-enabled business investments. In this field, practice-oriented guidance like COBIT and Val IT are often promoted as broad frameworks to implement enterprise governance of IT, but very little academic research is available that empirically supports the assumption that implementing EGIT practices, as defined by COBIT and Val IT, improve business performance. This article explores the relationship between Enterprise Governance of IT practices and business performance, and finds little support to identify a direct link between EGIT practices and business performance. However, clear empirical evidence is revealed demonstrating that the implementation of EGIT practices impacts the achievement of specific IT goals, which in turn impacts the achievement of specific business goals. A three-layered cascade is proposed to demonstrate the impact of EGIT practices, through IT goals, on business performance.

Date: 2010
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