The effect of business uncertainty on IT governance

Abstract

Purpose The purpose of this study is to examine the effect of business uncertainty on the information technology (IT) governance of listed firms in Indonesia. Design/methodology/approach The samples are listed firms in Indonesia Stock Exchange for the years 2015–2018. Total observations are 1,215 firm years. The authors used the random effect panel regression to test the hypotheses. Findings The authors find that business uncertainty has a significant positive association with IT governance, consistent with the prediction. Companies with higher business uncertainty are in higher demand for implementing IT governance. Originality/value The authors have not found previous studies that examine business uncertainty as to the determinant of IT governance. The authors also examined the IT governance in Indonesia, one of the emerging countries. Most previous studies on IT governance were conducted in developed countries, which results may not be generalized to emerging countries.

Towards the Analysis of Information Technology Governance and Productivity Based on COBIT Framework: An Empirical Study in E-Banking

“…IT governance provides tools and frameworks that ensure IT support for business objectives and maximize the efficiency of IT investment. Studies have shown that effective IT governance is the most important prerequisite for obtaining organizational value from information technology and investment in this field [2].…”