The Relationship between Information Technology Governance and Information Technology Performance in Taiwanese Financial Enterprises

Ruey-Shiang Shaw, Che-Pin Cheng, Ta-Yu Fu, Chia-Wen Tsai and Dong-Cheng Yen
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Ruey-Shiang Shaw: Department of Management Science, Tamkang University, New Taipei City, Taiwan
Che-Pin Cheng: Department of Information Management, Taipei Chengshih University of Science and Technology, New Taipei City, Taiwan
Ta-Yu Fu: Department of Management Science, Tamkang University, New Taipei City, Taiwan
Chia-Wen Tsai: Department of Information Management, Ming Chuan University, Taipei City, Taiwan
Dong-Cheng Yen: Department of Management Science, Tamkang University, New Taipei City, Taiwan

International Journal of Innovation in the Digital Economy (IJIDE), 2014, vol. 5, issue 3, 17-31

Abstract: More and more enterprises regard Information Technology (IT) as their most valuable property and make full use of IT to maximize the performance of their business operations. As a result, enterprises are attaching more importance to coordinating their IT strategy and enterprise strategy in order to get the most from their IT investment. For the sake of better IT performance and long-term development, firms must adopt a complete strategy for IT governance. In Taiwan, most financial enterprises have not considered IT governance to be a necessity, and those which are implementing IT governance have difficulty explaining, systemically, how it affects IT performance. Based on the five dimensions of IT governance, this study uses the balanced scorecard to measure IT performance and discusses the influence of effective governance on IT performance. The results show that the five dimensions of IT governance (strategic alignment, value delivery, risk management, resource management, and performance measurement) are all positively correlated with IT performance. The results of this study can help Taiwan's financial enterprises set the proper course for IT governance and more clearly understand how it serves to improve IT performance.

Date: 2014
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