The Influence of Hybrid Agile-Adaptive and Traditional IT Governance Mechanisms on Digital Transformation and Organizational Performance in the Indonesian Banking and Insurance Industries

Rahmat Mulyana (), Lazar Rusu () and Erik Perjons ()
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Rahmat Mulyana: Stockholm University
Lazar Rusu: Stockholm University
Erik Perjons: Stockholm University

A chapter in Advances in Information Systems Development, 2024, pp 173-197 from Springer

Abstract: Abstract Due to disruption from digital technologies, competition, behavioral shifts, regulations, and pandemics, incumbent organizations need to expedite their digital transformation. However, a lot of investments in digital transformation have failed because of poor governance. Prior studies have identified the hybrid IT governance mechanisms that impact digital transformation, consisting agile-adaptive and traditional approaches. Measuring the extent to which mechanisms influence digital transformation and organizational performance is important. Therefore, a survey strategy has been used to gather online questionnaire data from 338 respondents in the Indonesian banking and insurance industries, and then analyze it using the SEM-PLS method. The findings indicate that while both agile-adaptive and traditional IT governance mechanisms have a moderate influence on digital transformation, the transformation has a strong influence on organizational performance. The results contribute to research by investigating the influence extent of hybrid IT governance mechanisms on organizational performance, which is fully mediated by the digital transformation. There is also a practical implication from this study by providing the measurement items for both hybrid IT governance mechanisms, essential for guiding practitioners in their digital transformation journeys.

Keywords: Hybrid IT governance; Agile-adaptive; Traditional; Digital transformation; Organizational performance; Survey; SEM-PLS; Indonesia (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/978-3-031-57189-3_9

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