IT governance implementation framework for South African companies: a corporate governance perspective.

Doctoral Degree. University of KwaZulu-Natal, Durban.In the past, information technology (IT) management and governance was a departmental or management level responsibility. However, of recent, it has become an integral part of organisations and its optimal function has also become critical for the attainment of organisational strategic objectives. Organisations continuous investment in and dependency on IT has increased their risk exposure and thus necessitated the need for IT oversight. This need for oversight has prompted the incorporation of IT governance into corporate governance practices and codes. It has also prompted the elevation of IT governance to the highest level of control and leadership of the organisation which is the board. The objective of this study was to establish how JSE listed companies govern IT at the board level. A conceptual board level IT governance framework was derived through a combined review of governance models, corporate governance codes, and IT governance frameworks. The framework was tested using qualitative and quantitative data obtained through semistructured interviews and a survey respectively. The combined qualitative, quantitative and literature findings were analysed to achieve triangulation. The resultant findings indicated the following: an organisation with a well-developed IT governance framework positively improves its board level IT governance effectiveness; board level IT governance effectiveness is improved where IT leadership is engaged with the board; and effective board level IT governance oversight improves overall organisational performance. The unique contribution of this study is that it presents a corporate governance perspective to IT governance at the board level. It provides boards with factors on which to focus to improve their IT governance oversight effectiveness. The study found that IT governance oversight effectiveness is improved if the board focuses on decision making rather than technical and managerial IT-related matters. In addition, the study found that overall organisational performance is influenced by the organisation’s board level IT governance effectiveness. It is recommended that boards of organisations understand the broad domains of IT governance and the impact thereof on business operations, using platforms like board orientation and directorship programmes and courses where applicable. A sample questionnaire developed to guide the board on what aspects of IT governance issues to focus on is proposed and recommended

Board Engagement in IT Governance: Opening Up the Black Box of IT Oversight Committees at Board Level

Researchers and practitioners seem to agree on the importance of boards of directors engaging in IT governance. Yet, only a minority of boards around the globe are taking up accountability for governing IT, pointing towards a knowing-doing gap. Efforts have been made to close this gap by creating implementation guidelines for this type of engagement. One of the most frequently mentioned guidelines is the implementation of an IT oversight or similar committee at board level. However, research shows that few boards have established such a committee, which might be caused by the lack of detailed guidance on the workings and role of such committees. This paper discusses the case of the University of Antwerp that has established two IT oversight committees at board level. We demonstrate how IT oversight committees can be established and how they fit into the role of the board with regard to IT governance

An Empirical Study to Measure the Impact of Information Technology Governance Under the Control Objectives for Information and Related Technologies on Financial Performance

Purpose: To determine the effect of information technology governance (ITG) under the control objectives for information and related technologies (COBIT) on financial performance is the objective of this study. Additionally, the article seeks to look into the relationships between the factors under consideration.   Theoretical framework: Information technology and operational processes are evaluated and ensure their compliance with the instructions of the Central Bank of Iraq. Therefore, the research dealt with a conceptual framework by reviewing the literature on the importance of the COBIT framework in assessing financial performance.   Design/methodology/approach: To investigate the effect of information technology; we the value-added intellectual coefficient approach and a defined corporate governance index were utilized. The performance of the company was assessed using operating efficiency ratio and Economic value Added (EVA).   Findings: the results Show there are the high level of application of ITG in the banks listed in the Iraqi stock exchange. Also, we found the effectiveness of ITG under the COBIT framework in banking financial performance.   Research, Practical & Social implications: The findings should inform practitioners and legislative institutions of the necessity to follow strong COBIT procedures and enhance the effectiveness of IT to produce a better financial performance for firms.   Originality/value: the study is among the first to consider the casual connections and how COBIT policies for ITG affect financial performance in the setting of Iraq

Board IT Competence and Firm Performance

In this study, we theorize a new construct ‘board IT competence’, and show that it is systematically related to firm performance. Using a sample of 32,856 firm-years observations over the period of the year 2000 to 2018, our study shows that board IT competence is positively associated with firm performance. Moreover, the findings suggest that firm performance is not only higher, but also more consistent across time. While many firms find it difficult to identify the right sources in developing IT competence at the board level, our study suggests that a board composition that promotes the representation of directors with relevant IT competencies can offer valuable insights to mobilize and reconfigure IT asset to create firm value

Theoretical Trends in IS/T Leadership: A Review of Published Research

One way to examine the research contribution in structuring knowledge about an Information system (IS) phenomenon is to understand its theoretical state, trends and traits (structural nature of theory). We performed a theoretical assessment of one specific IS phenomenon: Information systems/technology (IS/T) leadership. IS/T leadership is a process followed by the top IS executives to affect various stakeholders to achieve the IS/T related goals aligned with the organizational mission and vision. We performed a systematic literature review, and categorized the surveyed articles based on the Gregor’s taxonomy of theory types in IS research to identify the type of theories developed and used in IS/T research. Our findings demonstrate the interest in theory used for explaining and predicting IS/T leadership research

Too Busy to Monitor? Board Busyness and the Occurrence of Reported Information Security Incidents

This paper investigates the association between board busyness (i.e., directors with multiple positions) and the occurrence of reported information security incidents. Building on prior studies of board busyness, this paper argues that directors holding multiple board seats may fail to commit the time and effort necessary to ensure the appropriate information security strategy or investment plans are in place. Our results demonstrate that board busyness is positively associated with reported information security incidents. This effect is larger when independent directors are busy, thus suggesting the importance of the governance role played by independent directors in managing information security risks. The board of directors’ role has been emphasized in anecdotal evidence and IT governance frameworks, but our study empirically demonstrates the board’s relevance in information security strategy and management

How Does Information Technology Governance Impact Organizational Performance: A MetaSEM Study

The literature establishes a positive association between IT governance and business performance. Nevertheless, we still do not completely understand how IT governance impacts firms. Informed by the literature, we hypothesize that IT strategic alignment and IT-enabled dynamic capabilities are two mechanisms that mediate the impact of IT governance on performance. We use a meta-analytic structural equation modeling (MetaSEM) method to create an integrative view of the existing fragmented literature. Our findings provide empirical support for our hypotheses. Our work contributes to the technology-mediated business value creation by providing a refined perspective on IT governance. Besides, our work yields a high-level understanding of why IT initiatives may fail and how to use IT governance to improve the performance of IT investments