Governance Team Leadership and Business User Participation - Organizational Practices for Innovative Customer Engagement in Data Compliance Project

Abstract

The study examines the relationship between the governance program teams, business user participation, and innovation in data compliance projects. Many firms continue to struggle with their governance programs as its effective implementation requires organizational change and a higher rate of involvement of those with significant knowledge of the context of the system use. Leadership elements are observed in governance teams and the way how these elements impact both, participation and innovation in recent General Data Protection Regulation (GDPR) data compliance efforts. To test the hypotheses, a quantitative method with Structural Equation Modelling and Partial Least Squares (PLS) in SmartPLS tool are used. The empirical data are collected from 98 data management professionals involved in projects associated with customers’ data in larger organizations across European Union (EU). Research findings show that Governance Team Leadership (GTL) influence positively Line-of-Business Stakeholders Participation (LOBSP) and LOBSP influence positively Data Compliance Innovation (DCI) in GDPR efforts. Moreover, it shows that LOBSP is the underlying mechanism (mediator) of the relationship GTL and DCI. Data governance transfers data and information management towards managerial functions and strategic management. Data has become embedded within nearly every department and business unit, and its proper enterprise-wide governance requires much more rigorous alignment with business users and formation of one cross-functional unit – data stewardship team of proactive leaders. In opportunities and restrictions of data revolution underway, evidence of any sustainable organizational practices leading to innovations and competitive advantage is beneficial.