Abstract
The research examines the impact of IT governance on business-IT alignment and IT investment performance to achieve firm business value. IT investment is a essential part of a system of interrelated firm resources where the level of IT business value depends on the degree of systems fit or misfit. This study drawn on the related literature in IT governance, IT investment performance, business-IT alignment and firm business value. The sample of 34 commercial banks and telecommunication companies in Sri Lanka participated in this study. Accordingly, the findings of this study proved the proposed hypotheses are supported except hypothesis 3. Accordingly, the first hypothesis proved that the IT governance facilitates to create better business - IT alignment. The second hypothesis proved that the IT governance practices create improved IT investment performance for businesses. The fourth hypothesis confirmed that the IT investment performance create firm business value. In contrary to the expectation, the third hypothesis that the business IT alignment and firm business value failed to support. The implications are also suggested from this study finding.
Highlights
Today measuring, maximizing and signifying the business value of IT investment have become as a top most priority for business executives (Ilmudeen et al 2019)
The second hypothesis proved that the IT governance practices create improved IT investment performance for businesses
The fourth hypothesis confirmed that the IT investment performance create firm business value
Summary
Today measuring, maximizing and signifying the business value of IT investment have become as a top most priority for business executives (Ilmudeen et al 2019). The strategic alignment and IT investment estimation both are complementary, which add to greater perceived levels of IT business value and the important to comprehend how IT creates business value to the firm (Tallon et al 2000). The business – IT alignment can bring enterprises nearer to the business performance achievement (Li and Tan 2013). In this similar vein, the better business – IT alignment, the greater the firm business success; the worse, the lesser the firm success (Bergeron et al 2004; Chen 2010; Cragg et al 2002). When IT investment is properly managed, satisfactory conditions are created for the alignment of IT resources and business strategies (Mao et al 2016)
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