Information technology investment governance: What is it and does it matter?

Syaiful Ali, Peter Green and Alastair Robb

International Journal of Accounting Information Systems, 2015, vol. 18, issue C, 1-25

Abstract: While the growth in the number of IT investments remains strong, research in the IT investment field is limited, resulting in suboptimal practical guidance on effectively governing IT investments. Based on resource-based theory, this paper reports the initial work involved in developing a construct named IT investment governance (ITIG), because it can be used to measure organizations' capability to govern their IT investments. This paper then empirically examines the association of ITIG and corporate performance. The preliminary result is a four-factor, 16-item instrument for assessing the ITIG construct. This method's factors are IT investment value governance, IT investment value monitoring, IT investment appraisals and IT investment project management. The impact of ITIG on corporate performance was demonstrated with a significant and positive relationship found to exist between the ITIG construct and corporate performance, thus supporting the effectiveness of the ITIG construct. Corporations with higher levels of ITIG capability are more likely to maximize the contribution of their IT investments to firm value.

Keywords: Organizational capability; Resource-based theory; Scale development; IT investment governance; Top-level management; Australia (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1467089515300063
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ijoais:v:18:y:2015:i:c:p:1-25

DOI: 10.1016/j.accinf.2015.04.002

Access Statistics for this article

International Journal of Accounting Information Systems is currently edited by S.V. Grabski

More articles in International Journal of Accounting Information Systems from Elsevier
Bibliographic data for series maintained by Catherine Liu ().