Abstract
Information technology (IT) can have a direct and indirect impact on business performance. New technologies change the risks at the strategic and governing levels of an enterprise. In the age of digitalization, we need to develop new understandings and approaches to governance and management. The most established IT governance (ITG) models, such as COBIT, ITIL and CMMI, are universal, one-size-fits-all models that are not in line with contingency theory and are predominantly designed for large multinational enterprises. They are too cumbersome and cost-intensive for small and medium enterprises (SMEs) to use effectively. Therefore, there is a need to develop more efficient models that are contingency-based and easier to implement than existing models and thus adaptable to the actual needs of the business. This paper presents an empirical evaluation of key ITG mechanisms from the literature that clearly shows that several are not universally but situationally necessary, thus demonstrating the need for new contingency-based ITG models.
Highlights
The first part of the results refers to the literature review and the first research question, which requires the definition of IT governance (ITG) mechanisms at the strategic level
The result of the in-depth literature review is a list of ITG mechanisms, which are recognized in the literature as ITG mechanisms of the strategic level and are the basis for performing qualitative research
There is no single approach to implementing ITG mechanisms that would meet an individual enterprise’s specific situations [49]
Summary
Rapid technological development dictates rapid changes and adjustments in enterprises at all levels, requiring new strategies and approaches to corporate governance and IT governance (ITG) [1]. The role of information technology (IT) was mainly to automate business processes, while today it is perceived as the main driver for the value creation of an enterprise [2]. Without effective ITG, it can negatively affect and reduce business value [2]. Previous research has shown the positive impact of ITG on business operations. Effective governance adds value to IT projects and reduces IT and project risks [4], allowing control over IT functions [4]. An enterprise’s competitive advantage and differentiation depend on effective ITG [5]
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