Effective IT Governance Research Articles

The impact of audit on IT governance: A study of the financial services sector in Ghana

AbstractIn recent years, IT governance has been a subject of discussion among academics and practitioners. The concern has been on the need to implement governance mechanisms and ensure the right balance of these mechanisms. However, the audit of IT governance mechanisms has received very little attention. This paper aims to analyse the overall impact of IT governance audits on the maturity and coherence of governance mechanisms. Guided by the configurational theory, the researchers argue that when governance mechanisms operate coherently and are regularly audited, there will be improvement in IT governance and the performance of financial institutions. In this study, seven financial services companies in Ghana were reviewed, and their IT governance maturity was assessed after seven months of auditing with a COBIT 5‐driven IT audit framework. Two surveys were conducted, one before and one after the auditing. The findings of the study confirm the claim that regular auditing improves IT governance maturity and coherence. Several governance mechanisms within the case organizations improved to one higher level of maturity on the Capability Maturity Model. This improvement was after seven months of auditing. Regular auditing also improved IT roles and responsibilities, empowered IT personnel and improved the IT budgetary control and architecture of the entities. This study has implications for practice. It emphasizes the importance of independent regular IT auditing and the need to ensure coherence among IT governance mechanisms if effective IT governance is to be achieved in financial institutions.

Information Technology Governance Between Iso 38500, Risk It and Val It in Private University

This study explores the application of the ISO 38500, Risk IT, and Val IT frameworks in improving IT governance at the university. ISO 38500 provides general guidance for IT management by boards of directors, while Risk IT focuses on IT risk management and Val IT focuses on managing the value of IT investments. Qualitative research methods were used, including interviews with key stakeholders at Pamulang University. The research results show that the integration of the ISO 38500, Risk IT, and Val IT frameworks has helped universities optimize strategic decision-making regarding IT. Implementation of this framework increases transparency, accountability and holistic IT risk management across the university. However, challenges faced include a lack of deep understanding of the framework and the need to ensure consistency in implementation. Recommendations for the university include more intensive training for staff, strengthening communication between different units, and developing performance metrics that align with the university's strategic goals. This research makes an important contribution to the practical understanding of implementing effective IT governance in higher education environments, by highlighting the benefits and challenges of integrating the ISO 38500, Risk IT, and Val IT frameworks.

Investigating drivers of information technology governance in South African public healthcare sector

As organizations continue to heavily invest in Information Technology (IT), effective information technology governance is critical to make sure that IT spending leads to the fulfilment of organizational goals and delivery of expected value. The purpose of this study is to determine IT governance drivers in public healthcare in South Africa. The study applied exploratory mixed methods research, through semi-structured interviews and an online survey questionnaire with selected IT and business decision-makers. Data were analyzed through thematic data analysis, confirmatory factor analysis and correlation analysis. Through the lenses of the technology organization environment (TOE) framework, findings indicate that organizations are driven by internal and external context-based governance imperatives, which manifest as trigger events and pain points, necessitating new or changed IT governance policies. The implication is that organizations require specifically tailored IT governance strategies that respond to their specific governance needs. The study calls for policymakers and implementers to be conscious of their IT problem context. In the absence of IT governance drivers’ contextualization, organizations may fail to tailor IT governance initiatives, and risk investing in costly IT governance practices that do not address their specific needs. The study contributes to reflective and pragmatic IT governance approaches in developing economies.

Peran Artificial Intelligence (AI) dalam Peningkatan IT Governance: Kajian Literatur

Amidst the rapid advancement of artificial intelligence (AI), the need for effective integration within IT Governance becomes increasingly vital. In this context, the research background highlights the complexity and dynamics hindering the efficacy of IT Governance, while AI holds promise as a solution to these challenges. This study investigates the role of AI in enhancing IT Governance. The research aim is to explore the impact of AI on improving the effectiveness and efficiency of IT Governance through a literature review method. This method will gather and analyze relevant literature sources to gain a comprehensive understanding of AI's role in IT Governance. The findings encompass AI's potential in enhancing decision-making, proactive risk management, process automation, and user satisfaction. However, challenges such as data privacy and organizational cultural changes are also identified. The research implications underscore the need for a planned approach and ongoing evaluation in adopting AI to ensure successful implementation while managing associated risks.

Information Technology Governance and Performance of Local Government Organizations: Testing Mediation Role of Accounting Information System Quality

This study aims to empirically test the role of effective information technology (IT) governance on local government organizations' (LGOs) performance with the quality of Accounting Information System (AIS) as a mediating variable. The samples of this study are LGOs in Yogyakarta, Indonesia. A total of 140 LGO officials, users of AIS software, are selected as the respondents. Data was collected through questionnaires. The minimum number of sample size is determined using the PLS-based 10 times rule of thumbs approach. This study uses Partial Least Square (PLS) to examine the relationship among variables. The results revealed that effective IT Governance did not increase LGOs' performance directly, but it should be through AIS quality as a mediator. This research results provide valuable input for LGOs particularly in emerging economies to enhance their performance by paying attention to the correlation between effective IT governance and AIS quality.

Towards better IT governance: A comprehensive IT internal control model for information technology firms

Purpose- The primary objective of this study is to enhance IT governance within the information technology sector by developing a comprehensive IT Internal Control Model. This model is designed to address the unique and evolving challenges in IT internal control processes, providing a structured approach to risk optimization, resource optimization, and benefit management. By introducing this model, the study aims to offer IT firms a robust internal control model that can be adapted to their specific operational needs, promoting a more effective, efficient, and resilient IT governance structure. Methodology- A thorough literature review, incorporating a wide array of international sources, forms the foundation of this study. The research involved designing an IT Internal Control Model, informed by the processes observed at THY Technology. This model was then applied across 12 distinct operational processes, and feedback from stakeholders was systematically gathered through surveys to evaluate its practicality and impact. Findings- The feedback from stakeholders was predominantly positive, underscoring the model’s efficacy in bolstering IT governance. The model was praised for its thoroughness and adaptability, successfully addressing a broad spectrum of IT internal control issues while remaining flexible enough to be tailored to various IT environments. Conclusion- This study highlights the importance of dynamic and adaptable IT internal control model in the fast-paced technology sector. The developed IT Internal Control Model opens new avenues for research into effective governance practices and provides a valuable blueprint for IT firms seeking to enhance their governangfce and control mechanisms in a digitally-driven world. Keywords: IT internal control model, internal control, IT governance, IT compliance, continuous improvement JEL Codes: M15, M19, M42

Audit Tata Kelola Teknologi Informasi Pada PT. XXX Menggunakan COBIT 2019 Dengan Domain Build, Acquire And Implement01

The rapidly growing development of Information Technology today has affected various business sectors. One of them is the manufacturing industry as carried out by PT. XXX. PT. XXX is one of the companies that has implemented information technology as a strategy to compete in the company's business. However, the information technology implemented is still not effective in achieving the company's goals. This study aims to evaluate IT governance at PT. XXX using the COBIT 2019 framework. COBIT is an internationally recognized framework for effective and efficient IT governance. This study uses a qualitative evaluation method, by collecting data through interviews with relevant parties at PT. XXX, as well as analysis of documents and policies related to IT governance. This data is then analyzed and compared with the COBIT 2019 framework to identify gaps and areas that need improvement. After the analysis, it was found that the objective that could be evaluated or audited was Managed Programs and Projects, BAI01. In this research, the results of the capability level on the PT XXX website were obtained at level 4 with an achievement value of 91%.

A Systematic Literature Review on IT Governance Mechanisms and Frameworks

Nowadays, it is not common to come across sectors that can work and succeed without using information technology (IT). IT has now become a part of organizations' management and strategic decision-making mechanisms. Therefore, organizations make serious investments to develop software and system infrastructures and transfer business processes to digital environments such as cloud technologies. So, they get business resilient while they gain opportunities of spreading their business activities to wide stakeholders and customers. Here it is essential to provide assurance that an organization evaluates, develops, implements, maintains, disposes of its IT systems and manages life cycle of all information and information technology systems properly on all physical and logical environments. However, the most important matter is that an organization’s objectives are met by the management practices of its information systems. While organizations carry out their digital transformation at a dizzying speed, organizations should be protected from material and moral damages such as loss of money, loss of commercial confidential information, loss of reputation by protecting the confidentiality, integrity and accessibility of the information assets they own and also comply with legal legislations such as the protection of personal data and intellectual property rights. In order to achieve this, organizations benefit from one or more frameworks, standards or directives that are suitable for their own structures and needs, separately or by integrating them. However, the most important point in this transformation process is the transition of organizations from IT management understanding to IT governance. In other words, IT has now become a part of the strategic decision-making mechanism by rising from the level of support tool to carry out business processes in organizations. When we search the academic literature, frameworks and standards, it is seen that the key elements of IT governance are structures, processes and relational mechanisms. If these three components are set up correctly and fit the organization, it can be assured that IT aligns with and supports the objectives of the organizations and that effective IT governance is achieved in every kind of organizations. In this research, databases such as Web of Science, IEEE, and SCOPUS are scanned and found articles are reviewed in order to make a literature review on IT Governance Mechanisms and Frameworks. Results are evaluated and discussed. By the way, suggestions for further studies were made and advanced researches were shed light on.

Design Factors in Evaluating and Formulating IT Governance Systems in Public Organizations

The application of information technology (IT) by central and regional governments to public services is intended to efficiently and effectively improve performance and public services. However, many studies have shown the ineffective application of IT. In Gorontalo province, this can be seen in the e-readiness value of Gorontalo province as a prerequisite for successful IT implementation, which is still at 58.15 points, which means that it is at a moderate level of readiness. This shows that implementing IT governance in the local government of Gorontalo province is still not optimal in terms of performance or public services. This study aims to identify the design factors that need to be considered when implementing IT Governance to achieve better public service performance. This study uses a quantitative approach based on a survey method. The results showed six models at Level 3: BAI06, BAI07, DSS01, DSS03, DSS04, and DSS05. In addition, four models were at level 4: APO12, APO13, BAI10, and DSS02. Levels 3 and 4 show that the IT governance capability of the Gorontalo provincial government in each model is not yet optimal. This study recommends that the Gorontalo provincial government evaluate and formulate an effective IT Governance system by focusing on each model's IT Governance design factors to improve public service performance.

The Effect of Organizational Cultures on Relationships between IT Governance and Individual Behavior

Background: Organizations allocate substantial resources to Information Technology (IT) to ensure its long-term success. Hence, effective IT Governance (ITG) is crucial for business/IT alignment. However, factors like employee behavior and Organizational Culture (OC) play vital roles in applying ITG but remain underexplored. Objectives: This study aims to bridge this gap by examining the relationship between ITG and Organizational Citizenship Behavior (OCB). Additionally, it investigates the moderating effect of different cultures in the Organizational Culture Assessment Instrument (OCAI) on the ITG-OCB relationship. Methods/Analysis: A survey was conducted involving 513 employees from over 150 companies worldwide. The data were analyzed using partial least-squares structural equation modeling (PLS-SEM). Findings: This study confirms that institutionalizing ITG enhances OCB. Furthermore, a moderating effect was observed in most relationships, highlighting the influence of different OC types. Market and hierarchy cultures exhibited the most significant moderating effect. Novelty: This research contributes to the understanding of ITG's impact on employee behavior, extending the investigation to new dimensions of OCB and confirming the moderating role of OC. The practical implications of this study enable organizations to foster a culture that promotes ITG and cultivates employees' OCB, leading to improved business-IT alignment, enhanced IT-enabled value, and, ultimately, enhanced organizational effectiveness. Doi: 10.28991/ESJ-2023-07-05-010 Full Text: PDF

THE IMPACT OF IT GOVERNANCE ON PROMOTING FIRM PERFORMANCE IN QATAR: A CONCEPTUAL APPROACH

This study explores the impact of IT governance on enhancing firm performance in Qatar, considering its unique context as a rapidly emerging nation with a burgeoning digital landscape. IT governance, as an extension of corporate governance, plays a pivotal role in improving operational efficiency, aligning strategies, managing risks, and creating value through technology. Drawing upon existing literature and theoretical frameworks, the study introduces a model that identifies key factors such as IT strategy formulation, IT infrastructure management, IT risk management, IT investment decision-making, and IT performance measurement, elucidating how IT governance influences business success. By synthesizing these concepts, this research lays the foundation for future empirical investigations, highlighting the critical role of effective IT governance in achieving superior firm performance in Qatar and similar contexts. The findings carry practical implications for practitioners, policymakers, and researchers aiming to enhance IT governance practices and understand their impact in Qatar's evolving digital landscape, ultimately contributing to our comprehension of how IT governance shapes organizational success and competitiveness in this dynamic environment.

Identification of IT Governance Capability Level of COBIT 2019 at The KOMINFO City of Bitung, North Sulawesi

Effective information technology governance (ITG) is vital for managing risks and ensuring proper oversight of IT in government organizations and enterprises. However, many organizations struggle with implementing effective ITG strategies, resulting in a higher likelihood of cybersecurity breaches, operational inefficiencies, and financial losses. This study addresses the urgency of improving ITG by assessing the capability level of ITG within the Ministry of Communication and Information Technology (KOMINFO) in Bitung, North Sulawesi, using the widely recognized COBIT 2019 framework. By conducting interviews with key IT personnel, the study quantifies the capability level of eleven core models and highlights areas that require improvement. The results underscore the critical importance of designing and implementing effective IT governance to mitigate risks and enhance IT oversight in government organizations and enterprises. The study's findings can serve as a foundation for future efforts to improve IT governance in KOMINFO and other organizations, ultimately contributing to a safer and more secure IT environment.

Information Technology Governance and Bank Performance: A Situational Approach

The aim of this paper is to provide empirical evidence about the effect of organizational competition (OC) as a contextual factor on the relationship between the effectiveness of information technology governance (ITG), which informs accounting information systems, and the financial performance of banks. Financial performance is identified by return on investment (ROI), return on equity (ROE), and Tobin’s Q. Averages of these variables were calculated for five years from 2015 to 2019. In fact, there is evidence for the general argument that banks will improve their performance by implementing ITG. Specifically speaking, the basic idea presented in this study is that the relation between ITG and bank performance depends on the appropriate interaction and matching between ITG and the OC. The study population includes the senior managers of banks in Jordan. Accordingly, a questionnaire consisting of 16 paragraphs was developed and distributed to senior managers in 23 banks during January to May 2021. As a result, 142 valid questionnaires were collected, which represented 61.7% of the questionnaires expected to be collected. Data are analyzed and processed by using descriptive statistical measures, t-test, exploratory factor analysis, along with multiple regression. The results show that despite the significant effect of OC on ITG, no relation exists between the interaction of ITG and OC, and bank performance in the three proxies of performance. The results of the study suggest that either banks do not benefit from ITG to improve their performance or that the chief executive officers’ perceptions about ITG in their banks is erroneous. However, it should be clarified that the respondents could have been affected by their values and beliefs when evaluating effective ITG use in their banks.

The impact of IT governance and administrative information quality on decision-making in the banking sector

This study aims to investigate the impact of the relationship between information technology (IT) governance and administrative information quality on decision-making in the banking industry. The study is motivated by the increasing importance of IT in the banking sector and the need to ensure the quality and reliability of administrative information. The study uses a quantitative research design, and the data was collected from 197 respondents working in different Saudi Arabian banks. This study’s findings indicate a significant positive relationship between IT governance and administrative information quality in the banking industry. Furthermore, the study found that administrative information quality significantly impacts decision-making in the banking industry. The study concludes that effective IT governance and the provision of high-quality administrative information are critical factors in improving decision-making in the banking industry. Overall, this study provides valuable insights into the importance of IT governance and administrative information quality in the banking industry and how they can contribute to improved decision-making processes. The findings of this study have implications for banks and their management in terms of developing effective IT governance practices and improving the quality of administrative information.

IT governance matter: A structured literature review

The aim of this paper is to critically explore information technology governance (ITG) context, its consequences, its various aspects, its determinants, disclosure, maturity, and challenges. There are some motivations that urge the researchers to carry out this study. First, the review of prior relevant literature reveals a limited number of studies addressing the IT governance context, its consequences, its various aspects, its determinants, and challenges. Second, very little is known about the potential implications of IT governance within the business and how it is significant to the decision-makers (e.g., shareholders, board of directors, executives, etc.). Finally, little research employs the structured literature review (SLR) approach to critically discuss and analyze the IT governance context with its various aspects. The systematic and structured literature review has been employed for a critical analysis of the previous studies on IT governance. It is found that effective ITG has a positive impact on the firm performance in consistent with Altemimi and Zakaria (2017), Hulme (2012). Additionally, it is concluded that there is a positive association between ITG, the trustworthiness and the level of financial disclosure agreeing with (Raghupathi, 2007; Ali & Green, 2007). It is also concluded that the level of ITG disclosure is higher within firms in Europe (67%) than in the US (49%) complementing with Joshi et al. (2013). The adoption of the SLR methodology enables this paper to derive unbiased empirical insights and critique into the current ITG research and to identify possible directions for future ITG research, which may possibly be of interest to the academics, regulators, and professional bodies (e.g., shareholders, board of directors, executives, etc.).

Using design science research to propose an IT governance model for higher education institutions.

The increasing use of, and dependence on, Information Technology (IT) to support operational teaching, research, and management activities in Higher Education Institutions (HEI)—mainly due to their multi-unit organizational structure—have evidenced the need of encouraging managers to focus more on IT Governance (ITG) effectiveness, which has been an issue for many of these institutions. In this sense, we aim to develop a specific ITG model for Higher Education Institutions, by following the methodological principles of Design Science Research (DSR). The model was developed based on a robust theoretical basis that took into account different approaches substantiated by both the alignment of good practices and ITG focus areas as well as addressing the current ITG context of the Brazilian higher education institutions. The validation of the ITG model was based on its presentation to members of the IT Steering Committee of a Brazilian HEI, who confirmed its usefulness and applicability.

The Influence IT Governance Mechanism on Effectiveness ITG and IT Performance: A Partial Least Squares Structural Equation Modeling Approach (PLS-SEM)

This article presents raw inferential statistical data that determine the IT Governance effectiveness on the IT Performance.To identify influence mechanism Information Technology Governance (ITG) on Effectiveness ITG and IT Performance.Data were collected from respondents in all regions of Indonesia. Quantitative research methods are used to analyze data. The structured questionnaire was distributed to respondents in all regions of Indonesia who understood the field of IT Governance in Higher University whose reliability and validity were confirmed. Structural equation modeling (SEM) using Smart PLS software, version 3, is used to present data. SEM path analysis shows an estimate of the relationship of the main constructs in the data The results obtained from this dataset shows positive relationship between mechanism Structure, Process and Relation to IT Governance effectiveness, consciousness also has a significant influence on the IT Performance and positive relationship between IT Governance effectiveness and IT Performance. However, mechanism structure and process has proven to have a negative and insignificant influence on the IT Performance Effective IT governance related to mechanism ITG and IT Performance level of unit analysis. One of the more significant findings to emerge from this study is that evaluate the mechanism ITG impact to effective IT governance that focus on higher education institution (HEI). This study already examines a validation of evaluation model and collecting data in particular higher education institution (HEI) as a single case study.

A Study of Information Technology Governance Initiatives On Organizational Performance

The paper aims to clarify the relationship between Information technology governance initiatives on effective information technology governance (ITG) and organizational performance. A quantitative study through a questionnaire survey has done for this research. Data was obtained from seven states in Malaysia, within the manufacturing sector. Structural equation modelling (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 initiatives and organizational performance. The paper provides empirical insights about the relations between information technology governance initiative and the efficacy of ITG and organizational performance. The results and findings of the research can have beneficial to supporting manufacturing organizations in their efforts towards carrying out improvement activities.

Determinants Effectiveness Information Technology Governance in Higher Education Institution (HEI) using partial least squares structural equation modeling approach (PLS-SEM)

Information technology supports the achievement of business organization objectives. The Higher Education institution is a business organization engaged in the field of education. Effective IT governance will ensure alignment between IT and business goals. Organizations with ineffective IT governance will suffer due to poor performance of IT resources such as inaccurate information quality, inefficient operating costs, runaway IT project and even the demise of its IT department. This study seeks to examine empirically the individual IT governance mechanisms that influence the overall effectiveness of IT governance. Furthermore, this study examines the relationship of effective IT governance and IT Innovation within the Higher education organizations. The sampling technique to be carried out in this study is a multi-stage purposeful random sampling. In sequence, researchers will combine surveys through online. The quantitative data were analyzed by the smallest partial quadratic structural equation method (PLS-SEM) using Smart PLS 3.0. The results obtained from this dataset show a positive significant relationship between effective IT governance and the following mechanisms: IT Steering Committee, Involvement of Senior management in IT, and Organizational Communication System. Also a positive relationship between ITG Effectiveness within IT Innovation. Organizational Communication System and IT Innovation have a positive significant relationship, and negative relationship with insignificant for Organizational Performance Measurement System.

Strategic IT alignment Projects. Towards Good Governance

The senior management of organisations frequently perceive IT Projects as merely technological in nature. They fail to realise that in reality, the mission of IT is to provide technology-based support to business processes that can be key to the organisation. This lack of understanding means that these IT projects are not aligned with the business objectives and that investments in resources and personnel are not adequately prioritised. This can lead to an opportunity loss: a mere computerising of the business is sought, and processes that could turn out to be transformative, generating added value, driving a true digital transformation of the business are overlooked. This article proposes a model for implementing and operating a portfolio of strategic IT projects. Based on Good Governance principles, these latter projects move strategic decision-making up to an organisation's senior management, succeeding in gradually implicating these managers into the IT strategy. But above all, the model succeeds in achieving the targeted strategic alignment of IT projects with the organisation's business objectives and interests. The model has already been implemented in fourteen medium and large size public universities. The follow-up through interviews of the nine longest-standing experiences—some are nearly a decade old—revealed that the portfolio implementation strategy had helped to markedly improve the following elements: the institutions’ state of maturity of Good Governance; senior management's involvement in IT projects; and the identification of the most interesting IT projects for the business. To conclude, based on our experience, we can affirm that the strategic IT alignment projects is an effective IT Governance tool and, by extension, an example of Good Governance practice.