The Mediating Role of IT Governance Effectiveness between ITG and Financial/ Non-Financial Performance: Empirical Research on Egyptian Banking Sector

Abstract

Purpose - The current research aims at testing the mediating role for IT governance between information technology, whether IT Structure and /or IT Capabilities and organizational Performance, whether Financial or non-financial performance of Egyptian banks. Design/methodology/approach – An empirical study was conducted on a sample size of 371 responses collected by a structured questionnaire was circulated from (38) banks located in Alexandria city in Egypt. Using random sampling method. ITG has been measured using: Structure, capabilities. And performance. Likert scales were used to measure (SRM) dimensions, and confirmatory factor analysis (CFA), and structural Equation Modeling (SEM). Findings - This research suggests that ITG effectiveness is a mediating variable between ITG structure, Capabilities and financial/ non-Financial performance. Research Limitations/Implications – The main limitation of the current study in the small size. This was due to the addition to that, the surveys had to be paired for them to be considered complete, and this research applied on commercial banks branches located in Alexandria and did not consider Islamic and Industrial bank. Originality/value- This research is an attempt to empirically test the effect of ITG structure, capabilities on financial/non-financial performance under ITG effectiveness in banks branches located in Alexandria, Egypt.