Abstract
The purpose of this study is to examine the extent to which senior management's involvement and demographics of organizational affect the effectiveness of IT governance with the performance of organizations. This is a combination of exploratory and descriptive research that aims to investigate the determinants of IT governance and its effects on organizational performance in Malaysian manufacturing companies. The sample size of 357 collected for this research. Structural equation modeling (SEM) was utilized in this research to investigate the measurement and structural model simultaneously. The findings demonstrated the relationships between the senior management's involvement and organizational demographics, effective its governance and organizational performance in manufacturing companies in Malaysia. This research is the construction of a theoretically based model which assimilates the senior management's involvement and organizational demographics, effective IT governance, and performance of organizations. Likewise, discover the most crucial elements that affect effective IT governance to improve the manufacturing company's performance.
Highlights
The purpose of this study is to examine the extent to which senior management's involvement and demographics of organizational affect the effectiveness of IT governance with the performance of organizations
In this study has considered the two components of involvement of senior management in IT such as: 1) IT Strategy Committee; The IT strategy committee is focused on establishing effective IT governance by giving enough resources for attaining their objectives linked to IT strategy and IT governance
This study focuses on seven research questions: RQ1.What's the partnership between involvements of senior management in effective IT governance?
Summary
The structures of ITG involve structural or formal mechanisms as well as devices that connect and facilitate horizontal contacts or liaison between the business management and IT functions such as the steering committee. The processes in ITG include the institutionalization and formulation of IT decisions that are strategic or procedures of IT monitoring like the IT balanced scorecard (De Haes et al, 2013). Managers have only utilized financial elements in measuring performance previously; it appears that this is insufficient, and this led to the introduction of a tool known as the balanced scorecard that incorporates measures that include financial and non-financial elements in measuring performance since non-financial elements are essential financial ones in a measuring system and having both elements in an integrated system will result in superior outcomes for the firm (Kairu et al.,2013). Kairu et al, (2013) regarded the BSC system as one in which the firm evaluates the main measures of performances based on the perspective of performance according to finance, customers, internal business processes, as well as learning and growth. Suitable actions could be taken to develop and create an environment that motivates the effectiveness of ITG that improves overall success
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