A conceptual framework for information technology governance effectiveness in private organizations

Abstract

PurposeThe purpose of this paper is to develop a conceptual framework that examines information technology (IT) governance effectiveness, its determinants, and its impacts on private organizations.Design/methodology/approachThe research draws on extant literature in IT governance, strategic information systems planning, strategic alignment maturity, information systems security, business and IT alignment, International Organization for Standardization in information systems, and organizational performance to identify determining factors for IT governance effectiveness, IT governance effectiveness factors, and organizational performance.FindingsThe results of review suggest 14 propositions and five factors grouped into determinants including organizational demographics, information intensity, organizational culture, external environment characteristics, and IT function characteristics. Linking organizational practices with strategy, the proposed framework adopts the Balanced Scorecard four perspectives approach for monitoring organizational performance as the impact of IT governance effectiveness. IT governance dimensions in the research comprise structure, process, and relational mechanisms.Originality/valueIT governance is a part of corporate governance to help organizations manage risks and protect themselves from technology‐related losses. The framework provides a starting point for researchers and practitioners to further examine IT governance practices. For researchers, the framework clarifies the determining factors of IT governance, dimensions of IT governance, and impacts through proposed relationships. For practitioners, the framework can be used to gain insight into the contributing factors of IT governance effectiveness.