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IT Governance Impact Model: How mature IT Governance affects Business Performance

Miroslav Lazic
University of Mannheim, Germany
Armin Heinzl
University of Mannheim, Germany
Alexander Neff
University of Mannheim, Germany


Abstract
This paper presents a theory based model that proposes and explains the positive impact of IT governance on the business performance of the firm. The study takes the resource based perspective and integrates the economic theory of complementarities, the concept of resource relatedness as well as the knowledge based view. The proposed increase of business performance is grounded in the generation of sustainable competitive advantage through super-additive value synergies, which are considered as being hard to copy by competitors. The theoretical model is developed and substantiated in two stages. During the first stage, eleven exploratory case studies of major multinational corporations were used for theory building. During the second stage, eight case studies with comparable companies were conducted for theory refinement and substantiation. The results suggest that IT governance is positively related to business performance through the mediators IT relatedness and business process relatedness. It is argued that the latter two are complementary in the sense that they do not only increase business performance independently, but add extra value if available concurrently. The results furthermore imply that the absorptive capacity of the IT department has a significant moderating effect.

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Reference:Lazic, M., Heinzl, A., Neff, A. (2011). "IT Governance Impact Model: How mature IT Governance affects Business Performance," Proceedings > Proceedings of JAIS Theory Development Workshop . Sprouts: Working Papers on Information Systems, 11(147). http://sprouts.aisnet.org/11-147
Keywords:IT Governance, Business Performance, Resource Relatedness, Absorptive Capacity, Resource Based View, Theory of Complementarities, Knowledge Based View
Item Type:Article - Volume 11 Article 147 (2011)
Language:English
Email: Miroslav Lazic (lazic@uni-mannheim.de)
Armin Heinzl (heinzl@uni-mannheim.de)
Alexander Neff (aneff@mail.uni-mannheim.de)

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  • IT Governance Impact Model: How mature IT Governance affects Business Performance. (deposited 25 Nov 2011 06:19) [Currently Displayed]

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