Impact of Information Technology (IT) Governance on Business-IT Alignment
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Published
19-05-2021
Weimar Santos Castellanos
Centrum Católica Graduate Business School, Jr. Daniel Alomía Robles n.° 125, urbanización Los Álamos de
Monterrico, Surco, Lima (Perú)
Abstract
Purpose: This basic, quantitative, descriptive, cross-sectional research aims to empirically examine the impact of IT governance on business-IT alignment. Method: This study adopts the Structural Equation Model (SEM) technique with Confirmatory Factor Analysis (CFA) to evaluate the relationship between IT governance and business-IT alignment, testing three basic hypotheses on the data collected from 672 web-based surveys of companies in Colombia. Main finding: IT governance significantly and directly affects business-IT alignment, but there are no differences in such influence as per industry type or company size. Limitations: This study only considered companies located in Colombia with a limited sample size in several industry types, which may become a possibility for further studies. Additionally, the data collected relies on the honesty of respondents and is not completely free of bias.
How to Cite
Santos Castellanos, W. (2021). Impact of Information Technology (IT) Governance on Business-IT Alignment. Cuadernos De Gestión, 21(2), 83–96. https://doi.org/10.5295/cdg.180995ws
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Keywords
Information Technology, IT governance, IT governance practices, Business-IT alignment, IT strategic alignment, IT management
References
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Gerow, J.E., Grover, V., Thatcher, J. and Roth, P.L., 2014. Looking Toward the Future of It–Business Strategic Alignment Through the Past: A Meta-Analysis. MIS Quarterly, 38 (4), 1159-1186.
Gerow, J.E., Thatcher, J.B. and Grover, V., 2015. Six types of IT-business strategic alignment: an investigation of the constructs and their measurement. European Journal of Information Systems, 24 (5), 465-491. https://doi.org/ 10.1057/ejis.2014.6
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Héroux, S. and Fortin, A., 2018. The moderating role of IT-business alignment in the relationship between IT governance, IT competence, and innovation. Information Systems Management, 35 (2), 98-123. https://doi.org/ 10.1080/10580530.2018.1440729
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IT Governance Institute, 2003. Board briefing on IT governance. 2nd ed. Rolling Meadows, IL: IT Governance Institute.
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Balocco, R., Ciappini, A. and Rangone, A., 2013. ICT Governance: A Reference Framework. Information Systems Management, 30 (2), 150-167. https://doi.org/ 10.1080/10580530.2013.773808
Bergeron, F., Croteau, A.-M., Uwizeyemungu and S., Raymond, L., 2015. IT Governance Framework Applied to SMEs. International Journal of IT/Business Alignment and Governance, 6 (1), 33-49. https://doi.org/ 10.4018/IJITBAG.2015010103
Bergeron, F., Raymond, L. and Rivard, S., 2004. Ideal patterns of strategic alignment and business performance. Information & Management, 41 (8), 1003-1020. https://doi.org/ 10.1016/j.im.2003.10.004
Buchwald, A., Urbach, N. and Ahlemann, F., 2014. Business value through controlled IT: toward an integrated model of IT governance success and its impact. Journal of Information Technology, 29 (2), 128-147. https://doi.org/ 10.1057/jit.2014.3
Byrne, B.M., 2010. Structural Equation Modeling with AMOS: Basic Concepts, Applications, and Programming. 2nd ed. New York, NY: Routledge.
Caluwe, L. and De Haes, S., 2019. Board Level IT Governance: A Scoping Review to Set the Research Agenda. Information Systems Management, 36 (3), 262-283. https://doi.org/ 10.1080/10580530.2019.1620505
Cervone, H.F., 2017. Implementing IT governance: a primer for informaticians. Digital Library Perspectives, 33 (4), 282-287. https://doi.org/ 10.1108/DLP-07-2017-0023
Chan, Y.E. and Reich, B.H., 2007. IT alignment: what have we learned?. Journal of Information Technology, 22 (4), 297-315. https://doi.org/ 10.1057/ palgrave.jit.2000109
Chan, Y.E., Sabherwal, R. and Thatcher, J.B., 2006. Antecedents and outcomes of strategic is alignment: An empirical investigation. IEEE Transactions on Engineering Management, 53 (1), 27-47. https://doi.org/ 10.1109/TEM.2005.861804
Charoensuk, S., Wongsurawat, W. and Khang, D.B., 2014. Business- IT Alignment: A practical research approach. The Journal of High Technology Management Research, 25 (2), 132-147. https://doi.org/ 10.1016/j. hitech.2014.07.002
Chion, S. and Charles, V., 2016. Analítica de Datos para la Modelación Estructural. Lima, Perú: Pearson.
Coltman, T., Devinney, T.M., Midgley, D.F. and Venaik, S., 2008. Formative versus reflective measurement models: Two applications of formative measurement. Journal of Business Research, 61 (12), 1250-1262. https://doi.org/ 10.1016/j.jbusres.2008.01.013
Coltman, T., Tallon, P., Sharma, R. and Queiroz, M., 2015. Strategic IT alignment: twenty-five years on. Journal of Information Technology, 30 (2), 91-100. https://doi.org/ 10.1057/jit.2014.35
Damanpour, F., 1991. Organizational Innovation: A Meta-Analysis of Effects of Determinants and Moderators. The Academy of Management Journal, 34 (3), 555-590.
De Haes, S., 2007. The impact of IT governance practices on business/ IT alignment in the Belgian financial services sector (Doctoral dissertation, Ph.D.). Universiteit Antwerpen, Belgium.
De Haes, S. and Van Grembergen, W., 2004. IT Governance and Its Mechanisms. Information Systems Control Journal, 1, 27–33.
De Haes, S. and Van Grembergen, W., 2008. Analysing the Relationship between IT Governance and Business/IT Alignment Maturity, in: 2008 41st Hawaii International Conference on System Sciences (HICSS), 428-437.
De Haes, S. and Van Grembergen, W., 2009. An Exploratory Study into IT Governance Implementations and its Impact on Business/ IT Alignment. Information Systems Management, 26 (2), 123-137. https://doi.org/ 10.1080/10580530902794786
De Haes, S., Van Grembergen, W. and Debreceny, R.S., 2013. COBIT 5 and Enterprise Governance of Information Technology: Building Blocks and Research Opportunities. Journal of Information Systems, 27 (1), 307-324. https://doi.org/ 10.2308/isys-50422
Farooq, R., 2016. Role of structural equation modeling in scale development. Journal of Advances in Management Research, 13 (1), 75-91.
Gerow, J.E., Grover, V. and Thatcher, J., 2016. Alignment’s nomological network: Theory and evaluation. Information & Management, 53 (5), 541-553. https://doi.org/ 10.1016/j.im.2015.12.006
Gerow, J.E., Grover, V., Thatcher, J. and Roth, P.L., 2014. Looking Toward the Future of It–Business Strategic Alignment Through the Past: A Meta-Analysis. MIS Quarterly, 38 (4), 1159-1186.
Gerow, J.E., Thatcher, J.B. and Grover, V., 2015. Six types of IT-business strategic alignment: an investigation of the constructs and their measurement. European Journal of Information Systems, 24 (5), 465-491. https://doi.org/ 10.1057/ejis.2014.6
Gordon, F., 2012. Impact of Information Technology Governance Structures on Strategic Alignment (Doctoral dissertation, Ph.D.). Capella University, Minneapolis, Minnesota.
Gutiérrez, A., Orozco, J. and Serrano, A., 2009. Factors affecting IT and business alignment: a comparative study in SMEs and large organisations. Journal of Enterprise Information Management, 22 (1/2), 197-211. https://doi.org/ 10.1108/17410390910932830
Harguem, S., Karuranga, E. and Mellouli, S., 2014. Impact of IT Governance on Organizational Performance: Proposing an Explanatory Model, in: Proceedings of the European Conference on Management, Leadership & Governance. 436-444.
Henderson, J.C. and Venkatraman, N., 1993. Strategic alignment: leveraging IT for transforming organizations. IBM Systems Journal, 32 (1), 472-484.
Héroux, S. and Fortin, A., 2018. The moderating role of IT-business alignment in the relationship between IT governance, IT competence, and innovation. Information Systems Management, 35 (2), 98-123. https://doi.org/ 10.1080/10580530.2018.1440729
Hiekkanen, K., 2016. Exploring the relationship between IT Governance and Strategic Alignment (Doctoral dissertation, Ph.D.). Aalto University, Helsinki.
Iacobucci, D., 2010. Structural equations modeling: Fit Indices, sample size, and advanced topics. Journal of Consumer Psychology, 20, 90- 98. https://doi.org/ 10.1016/j.jcps.2009.09.003
Information Systems Audit and Control Association [ISACA], 2012. COBIT 5: A Business Framework for the Governance and Management of Enterprise IT. Rolling Meadows, IL: ISACA.
IT Governance Institute, 2003. Board briefing on IT governance. 2nd ed. Rolling Meadows, IL: IT Governance Institute.
Jia, Y., Wang, N. and Ge, S., 2018. Business-IT Alignment Literature Review: A Bibliometric Analysis. Information Resources Management Journal, 31 (3), 1-16. https://doi.org/ 10.4018/IRMJ.2018070103
Kaur, J., Mohamed, N. and Ahlan, Abd.R., 2011. A confirmatory factor analysis of the information technology governance effectiveness: Evidence from Malaysia. IEEE 2011 International Conference on Research and Innovation in Information Systems, Kuala Lumpur, 1-5. https://doi.org/ 10.1109/ICRIIS.2011.6125666
Kline, R., 2016. Principles and Practice of Structural Equation Modeling.4th ed. New York: The Guilford Press.
Kude, T., Lazic, M., Heinzl, A. and Neff, A., 2018. Achieving IT-based synergies through regulation-oriented and consensus-oriented IT governance capabilities. Information Systems Journal, 28 (5), 765-795. https://doi.org/ 10.1111/isj.12159
Kuruzovich, J., Bassellier, G. and Sambamurthy, V., 2012. IT Governance Processes and IT Alignment: Viewpoints from the Board of Directors, in: 2012 45th Hawaii International Conference on System Sciences (HICSS), 5043-5052.
Levstek, A., Hovelja, T. and Pucihar, A., 2018. IT Governance Mechanisms and Contingency Factors: Towards an Adaptive IT Governance Model. Organizacija, 51 (4), 286-310. https://doi.org/ 10.2478/ orga-2018-0024
Luftman, J., 2000. Assessing Business-IT Alignment Maturity. Commu- nications of the Association for Information Systems, 4 (14), 1–51.
Luftman, J., Dorociak, J., Kempaiah, R. and Rigoni, E.H., 2008. Strategic Alignment Maturity: A Structural Equation Model Validation. In: Proceedings of the Fourteenth Americas Conference on Information Systems, 53, 1-16.
Luftman, J., Zadeh, H.S., Derksen, B., Santana, M., Rigoni, E.H. and Huang, Z., 2013. Key information technology and management issues 2012- 2013: an international study. Journal of Information Technology, 28 (4), 354-366. https://doi.org/ 10.1057/jit.2013.22
Luftman, J.N., 2003. Competing in the Information Age. New York: Oxford University Press.
Lunardi, G.L., Gastaud Maçada, A.C., Becker, J. o L. and Van Grembergen, W., 2017. Antecedents of IT Governance Effectiveness: An Empirical Examination in Brazilian Firms. Journal of Information Systems, 31 (1), 41-57. https://doi.org/ 10.2308/isys-51626
MacCallum, R., Browne, M. and Sugawara, H., 1996. Power analysis and determination of sample size for covariance structure modeling. Psychological Methods, 1 (2), 130-149.
Mardikyan, S., 2010. Analyzing the Usage of IT in SMEs. Communications of the IBIMA, 1-10. https://doi.org/ 10.5171/2010.208609
Olutoyin, O. and Flowerday, S., 2016. Successful IT governance in SMES: An application of the Technology-Organisation-Environment theory. South African Journal of Information Management, 18 (1), 1-8. https://doi.org/ 10.4102/sajim.v18i1.696
Parry, V.A., 2014. The relationship between effective information technology governance and project portfolio control, risk management, and business/ information technology alignment in an organization (Doctoral dissertation, Ph.D.). Capella University, Minneapolis, Minnesota.
Peterson, R., 2004. Crafting Information Technology Governance.Information Systems Management, 21 (4), 7-22.
Ping-Ju Wu, S., Straub, D.W. and Liang, T.-P., 2015. How Information Technology Governance Mechanisms and Strategic Alignment Influence Organizational Performance: Insights from a Matched Survey of Business and IT Managers. MIS Quarterly, 39 (2), 497- A7.
Queiroz, M., 2017. Mixed results in strategic IT alignment research: a synthesis and empirical study. European Journal of Information Systems, 26 (1), 21-36. https://doi.org/ 10.1057/s41303-016-0024-z
Raymond, L., Bergeron, F., Croteau, A.-M. and Uwizeyemungu, S., 2019. Determinants and outcomes of IT governance in manufacturing SMEs: A strategic IT management perspective. International Journal of Accounting Information Systems, 35, 1-15. https://doi. org/10.1016/j.accinf.2019.07.001
Ruiz, M.A., Pardo, A. and Martín, R.S., 2010. Modelos De Ecuaciones Estructurales. Papeles del Psicólogo, 31 (1), 34-45.
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