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Information technology (IT) plays an essential role in organizational innovation adoption. As such, IT governance (ITG) is paramount in accompanying IT to allow innovation. However, the traditional concept of ITG to control the formulation and implementation of IT strategy is not fully equipped to deal with the current changes occurring in the digital age. Today’s ITG needs an agile approach that can respond to changing dynamics. Consequently, companies are relying heavily on agile strategies to secure better company performance. This paper aims to clarify how organizations can implement agile ITG. To do so, this study conducted 56 qualitative interviews with professionals from the banking industry to identify agile dimensions within the governance construct. The qualitative evaluation uncovered 46 agile governance dimensions. Moreover, these dimensions were rated by 29 experts to identify the most effective ones. This led to the identification of six structure elements, eight processes, and eight relational mechanisms.
With significant advancements in digital technologies, firms find themselves competing in an increasingly dynamic business environment. It is of paramount importance that organizations undertake proper governance mechanisms with respect to their business and IT strategies. Therefore, IT governance (ITG) has become an important factor for firm performance. In recent years, agility has evolved as a core concept for governance, especially in the area of software development. However, the impact of agility on ITG and firm performance has not been analyzed by the broad scientific community. This paper focuses on the question, how the concept of agility affects the ITG–firm performance relationship. The conceptual model for this question was tested by a quantitative research process with 400 executives responding to a standardized survey. Findings show that the adoption of agile principles, values, and best practices to the context of ITG leads to meaningful results for governance, business/IT alignment, and firm performance.