The Effect of IT Governance on Thai Financial Institution

Abstract

Information Technology (IT) governance has emerged as a fundamental business imperative, and rightfully so, because it is a key to realizing IT business value. IT governance describes the distribution of I T decision-making rights and responsibilities among different stakeholders in the firm, and def ines the procedures and mechanisms for making and monitoring strategic I T decisions. This research tries to examine the effectiveness of IT Governance to organization b y using IT balanced scorecard as a tool to measure the effectiveness of IT Governance through a survey. Researchers had been collected data from total 28 companies which are financial instituti on in Thailand. Data collected is focusing on IT Governance implementation that expected to improve orga nizational performance. According to I T balanced scorecard, the survey was divided into four parts through four perspectives which are corporate contribution, stakeholders, operational excellence and future orientation. Theresult shows thatFuture Orientation has an impact on Operational Excellence. Operational Excellence has an impact on Stakeholders.Stakeholderhas an impact on Corporate Contribution. These relationships are cause -and-effect relationships. According to our findings, we can conclude that IT Governance has a positive impact on financial institution in Thailand.