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IT Governance (ITG) is crucial due to its significant impact on enabling innovation and enhancing firm performance. Hence, in the last decade ITG has become important in both academic and in practical research. Although several studies have investigated individual aspects of ITG success and its impact on single determinants, the causal relationship of how ITG promotes firm performance remains unclear. Thus, a more comprehensive understanding about the link between ITG and firm performance is needed. To address this gap, this research aims at understanding how ITG and firm performance are related. Therefore, we conducted a systematic literature review (1) to create an overview on how current research structures the link between ITG mechanisms and firm performance, (2) to uncover key constructs as potential mediators or moderators on the general link between ITG and performance, and (3) to set the basis for future studies on the ITG-firm performance relationship.
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.
With significant advancements in digital technologies, firms find themselves competing in an increasingly dynamic business environment. Therefore, the logic of business decisions is based on the agility to respond to emerging trends in a proactive way. By contrast, traditional IT governance (ITG) frameworks rely on hierarchy and standardized mechanisms to ensure better business/IT alignment. This conflict leads to a call for an ambidextrous governance, in which firms alternate between stability and agility in their ITG mechanisms. Accordingly, this research aims to explore how agility might be integrated in ITG. A quantitative research strategy is implemented to explore the impact of agility on the causal relationship among ITG, business/IT alignment, and firm performance. The results show that the integration of agile ITG mechanisms contributes significantly to the explanation of business/IT alignment. As such, firms need to develop a dual governance model powered by traditional and agile ITG mechanisms.
Higher education institutions (HEIs) rely heavily on information technology (IT) to create innovations. Therefore, IT governance (ITG) is essential for education activities, particularly during the ongoing COVID-19 pandemic. However, the traditional concept of ITG is not fully equipped to deal with the current changes occurring in the digital age. Today's ITG requires an agile approach that can respond to disruptions in the HEI environment. Consequently, universities increasingly need to adopt agile strategies to ensure superior performance. This research proposes a conceptualization comprising three agile dimensions within the ITG construct: structures, processes, and relational mechanisms. An extensive qualitative evaluation of industry uncovered 46 agile governance mechanisms. Moreover, 16 professors rated these elements to assess agile ITG in their HEIs to determine those most effective for HEIs. This led to the identification of four structure elements, seven processes, and seven relational mechanisms.
Today, many companies are adapting their strategy, business models, products, services as well as business processes and information systems in order to expand their digitalization level through intelligent systems and services. The paper raises an important question: What are cognitive co-creation mechanisms for extending digital services and architectures to readjust the usage value of smart services? Typically, extensions of digital services and products and their architectures are manual design tasks that are complex and require specialized, rare experts. The current publication explores the basic idea of extending specific digital artifacts, such as intelligent service architectures, through mechanisms of cognitive co-creation to enable a rapid evolutionary path and better integration of humans and intelligent systems. We explore the development of intelligent service architectures through a combined, iterative, and permanent task of co-creation between humans and intelligent systems as part of a new concept of cognitively adapted smart services. In this paper, we present components of a new platform for the joint co-creation of cognitive services for an ecosystem of intelligent services that enables the adaptation of digital services and architectures.