THE EFFECT OF INVOLVEMENT OF SENIOR MANAGEMENT AND CORPORATE COMMUNICATION SYSTEMS ON EFFECTIVE IT GOVERNANCE AND ORGANIZATIONAL PERFORMANCE

Abstract

Recently, information technology governance has become a critical issue for many companies in various industries; this is even more important for enterprises due to the more complex business processes, more specified tasks and departments. Many companies suffer from extra costs of IT and other processes due to failure inefficient alignment between IT and business strategies which in turn, leads to low performance of the company. To overcome this problem, organizations need to have an effective ITG to make IT resources management more valuable, less substitute, rarer, and less imitable. To do so, firms need to use IT governance initiatives factors (Involvement of Senior Management in IT and Corporate Communication Systems) to increase their effectiveness and organizational performance. Thus, this paper is aimed to establish a framework, testing the role of Involvement of Senior Management in IT and Corporate Communication Systems on effective information technology governance (ITG) and organizational performance in the manufacturing companies; which should help managers to better understand how Involvement of Senior Management in IT and Corporate Communication Systems and effective ITG, impacts on organizational performance. 357 data were obtained from managers in the Malaysian manufacturing industry. Structural equation modeling (SEM) was used in this study to analyze the measurement and structural models simultaneously to test the role effect of ITG between information technology governance initiative factors (Involvement of Senior Management in IT and Corporate Communication Systems) and organizational performance. Limitations, implications, and suggestions for future studies were discussed.