Impact of IT governance process capability on business performance: Theory and empirical evidence

Joshi, Anant; Benitez, Jose; Huygh, Tim; Ruiz, Laura; Haes, Steven De

doi:10.1016/j.dss.2021.113668

Cited by 46 publications

(39 citation statements)

References 48 publications

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“…Joshi et al [34] found support for their research model using a dataset from 881 global companies that their construct IT governance process capability has a positive effect on business performance by increasing IT-performance. This linkage has been theoretically drawn, by stating that companies, which address processes in the area of IT e.g.…”

Section: It-governance Business Valuementioning

confidence: 95%

Leverage the COBIT 2019 Design Toolkit in an SME Context: A Multiple Case Study

Amore

Ploder

Bernsteiner

et al. 2023

KSS

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Organizations today exploit IT to achieve business value and competitive advantages; it is the disruptive effect of digital transformation. However, investing in IT without proper control and governance over enterprise IT (GEIT) can expose organizations to cyber-risks and IT project failures. This problem affects both multinationals and small organizations. In particular, small and medium-sized enterprises (SMEs) struggle to implement IT-governance also due to the complexity of the standard IT-governance frameworks. In this study, five case studies were conducted with five manufacturing companies in Italy whose headquarters are located in the Lombardy region to investigate the potential benefits for IT practitioners of using the COBIT 2019 Design Toolkit, an Excel spreadsheet that facilitates the development of a governance system. The results are encouraging, the IT practitioners appreciated the COBIT 2019 Design Toolkit to map the IT resources and issues, prioritize the most important governance and management objectives, and align business and IT strategy. However, some criticalities emerged, for instance, the limited prescriptive power of the tool and the language, which is sometimes difficult to understand for IT practitioners. It should also be noted that current IT-governance implementation in Italian manufacturing SMEs appears to be very limited. Further, it should be highlighted that this study was using COBIT 2019 before ISACA issued “COBIT for Small and Medium Enterprises Using COBIT 2019” which could already have a positive impact on the level of comprehension. Keywords: COBIT 2019, IT-governance, IT-governance frameworks, multiple case study

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Section: It-governance Business Valuementioning

confidence: 95%

Leverage the COBIT 2019 Design Toolkit in an SME Context: A Multiple Case Study

Amore

Ploder

Bernsteiner

et al. 2023

KSS

View full text Add to dashboard Cite

show abstract

“…Moreover, Yu et al (2021) surveyed 296 manufacturing companies in China and found that IT capability can improve quality, delivery, flexibility, and reduce costs to improve operational performance. Another study by Joshi et al (2022) has surveyed 881 global companies to examine the impact of IT governance processes on business performance. The study found that the capability of IT governance processes positively affects business performance.…”

Section: It Capability and Operational Performancementioning

confidence: 99%

The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from Indonesia

Hadikusuma

Siagian

2022

OMEE

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During the Pandemic of COVID-19, many manufacturing companies around the world, such as Indonesia, experienced supply and demand disruption. The PMI index reflecting the operational performance declined to 27.5 in April 2020 from 45 in January 2020. This study investigates the influence of IT capability on operational performance through internal and external integration. The sample consists of 111 manufacturing companies, and data analysis adopts the Partial Least Square (PLS) approach with SmartPLS. The results revealed that nine hypotheses proposed were supported. First, IT capability directly affects internal, external integration, and operational performance. Second, internal and external integration affects operational performance. Third, IT capability indirectly affects operational performance through internal and external integration. This research paves a way on how to recover the operational performance during the pandemic. These findings also contribute to enriching and extending the acceptance of previous research in the manufacturing industry context.

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“…Over the last three decades, the focus on IT governance has emerged significantly, especially in the context of risk management and value generation for organizations regardless the size [13]. It has been emphasized numerous times that IT value generation heavily depends on good IT Governance [28][29][30]. Nevertheless, research on IT governance in SMEs is still uncommon, although they underpin more than 90% of global economics [8].…”

Section: Congruence Between Theoretical Concepts Of It Governance In ...mentioning

confidence: 99%

Leveraging COBIT 2019 to Implement IT Governance in SME Context: A Case Study of Higher Education in Campus A

Utomo

Wijaya

Suzanna

et al. 2022

CommIT (Communication and Information Technology) Journal

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Achieving business and Information Technology (IT) alignment has become the aspiration of most organizations nowadays. Small and Medium Enterprises (SMEs) are not exempt as they also thrive to survive in a competitive market using IT. However, implementing all IT control and management components will be excessive, with a lack of justifiable cost-benefit for SMEs. A tailored governance system based on the specificities of SMEs is necessitated to help the organization to focus on its main objectives and strategies. By leveraging COBIT 2019 design toolkit, the researchers support Campus A in establishing healthy governance and IT management. Both qualitative and quantitative approaches are applied to select relevant governance/ management objectives. The toolkit has been designed with a semi-automated quantitative approach in which users will get scoring for each objective based on the associated value inputted for each design factor. Through a series of discussions with the management team, it concludes the governance design and recommends several improvements to increase its capability level, from the current level of 1.05 (initial stage) to the desired level of 2.33 (repeatable stage). Then, since the toolkit is practical to use, it is also rigid by design with its predefined and protected formula. To some extent, the resulting score or importance level of certain governance/management objectives is questionable and lacks justification. Flags or indicators to ‘should-have’ governance/management objectives, regardless of the organization’s size and type, will be useful to prevent the omission of essential objectives.

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Impact of IT governance process capability on business performance: Theory and empirical evidence

Cited by 46 publications

References 48 publications

Leverage the COBIT 2019 Design Toolkit in an SME Context: A Multiple Case Study

Leverage the COBIT 2019 Design Toolkit in an SME Context: A Multiple Case Study

The Influence of IT Capability on Operational Performance Through Internal and External Integration: Evidence from Indonesia

Leveraging COBIT 2019 to Implement IT Governance in SME Context: A Case Study of Higher Education in Campus A

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