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The Impact of Information Technology Governance on Business Performance

Series:

Miroslav Lazic

Corporate information technology plays a crucial role in achieving operational and strategic goals. IT governance has therefore become a central issue to research and practice. While existing IT governance frameworks suggest the implementation of IT governance mechanisms, the link between IT governance and business performance has remained elusive. This study addresses the gap. What are the effects and value contributions of IT governance? Which interdependencies between IT and business processes have to be considered? Based on existing theories and a unique access to expert interviews, an explanatory model has been developed and presented. The findings contribute to theory building efforts in the Information Systems discipline and are highly relevant for practitioners.

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5. Empirical Substantiation and Theory Corroboration

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As discussed in the research design (see Chapter 3), this study follows a multiple stage approach in order to develop an explanatory model that is able to explain how IT gov- ernance influences the business performance of a firm. The first phase, exploratory in nature, was introduced in detail in the previous section. The presented results (see Fig- ure 7) suggest that ITG maturity heavily influences the IT relatedness and business process relatedness of firms. Based on empirical evidence it was shown that resource relatedness, in turn, is able to provide values that, following extant studies, can be the basis for sustainable competitive advantages and, hence, an increase in business per- formance. What is more, the empirical observations suggest that the absorptive capacity of the IT department has a vital role for a successful implementation of relatedness pro- jects that require a large portion of context-specific knowledge. This chapter discusses the second empirical phase of this study, which aims at cor- roborating the developed mid-range theory. To do so, another set of case studies was conducted to analyse if the developed explanatory model holds when being applied to a second data sample. The subsequent section introduces the analysed case companies and presents the data collection and analysis, which follows the procedure as discussed in section 3.5. 5.1 Data Selection and Analysis The case sample of the refinement phase encompasses 10 corporations which are com- parable in size and industry to the case companies of the first round. In order to...

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