Abstract

Information technology (IT) governance has received a lot of attention lately, with a growing strategic importance currently being given to IT by both public and private organizations. This justifies the existence of a body of scientific literature on IT governance, to which this paper belongs and makes an attempt to contribute to. Towards that end, an empirical study was performed involving 57 public organizations of the Brazilian federal administration, examining the relationship between three governance mechanisms – IT steering committee, IT solution manager, and IT investment portfolio management process and IT governance effectiveness. Based on the literature review, a conceptual model was developed to express the causal relations that these constructs were expected to hold with one another. Through a custom-designed questionnaire submitted to over 180 federal public employees, the causal model was tested using mediation analysis and mostly confirmed. Results indicate that Portfolio Management should always be taken into account for analyses that aim to evaluate the effects of IT steering committees and solution managers on IT governance effectiveness. This means that a nonexistent or an underperforming Portfolio Management Process can lead to a reduction or cancellation of the potential positive contributions of the other two mechanisms to IT governance. By informing decision makers and public managers at some of the main federal public organizations in the country on how to plan and deploy IT to promote a more effective governance, the conclusions presented herein fill a previous knowledge gap in the complementarity and the joint effectiveness of three IT governance mechanisms on the IT dynamics of key public organizations.

Highlights

  • Information Technology (IT) is currently considered a critical and strategic asset for organizations, both public and private (Affeldt & Vanti, 2009; Albertin & Albertin, 2008a; Albertin & Albertin, 2008b; Assis, 2011; ISACA, 2012).In order for an institution to obtain the benefits expected from IT use, at acceptable levels of risk and cost, IT governance must be established and maintained (ABNT, 2009; Assis, 2011; Machado, 2007; Ramos, 2009)

  • The present study analyzed the relationships between three well-known governance mechanisms and the effectiveness of IT governance in Brazilian federal public institutions

  • Empirical evidence shows that the performance of the IT Steering Committee and of the IT Solution Manager has a positive influence and considerably affects the performance of the IT Investment Portfolio Process

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Summary

Introduction

Information Technology (IT) is currently considered a critical and strategic asset for organizations, both public and private (Affeldt & Vanti, 2009; Albertin & Albertin, 2008a; Albertin & Albertin, 2008b; Assis, 2011; ISACA, 2012).In order for an institution to obtain the benefits expected from IT use, at acceptable levels of risk and cost, IT governance must be established and maintained (ABNT, 2009; Assis, 2011; Machado, 2007; Ramos, 2009). IT governance can be understood as a set of policies, organizational structures, work processes, roles and responsibilities that are established by the top management in order to steer IT actions and exert control over the use and management of IT throughout the institution (Mello, 2006; Mendonça, 2013; ISACA, 2012). A study carried out by Ali & Green (2012) has not identified statistically significant relationships between the action of the IT steering committee and the effectiveness of IT governance, reaching a paradoxical conclusion. Though gave priority to private companies and the sample was intentionally filtered in order to include only institutions with a certain level of indirect execution (outsourcing) of IT activities. It must be taken into account that the respondents to the Ali & Green (2012) survey were representatives of only one group of stakeholders of enterprise IT: IT auditors

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