A model for digital business governance for strategic growth and innovation with dynamic capabilities

Abstract

This chapter presents a conceptual study of digital business governance with dynamic capabilities to understand relations with company growth and innovation. Information Technology (IT) governance is the main type of management structure in information systems (IS) and the IT field. However, digital transformation imposes a new way of structural consent with business processes. Each domain in businesses begins to implement its digital applications and platforms. IT governance and its framework are related to internal IT management, auditing, and regulations. At the same time, previous literature does not have enough studies for digital business governance with dynamic capabilities. Also, IT governance and its framework are not enough to respond to digital transformation needs for each business domain. Therefore, this study examines digital business governance with dynamic capabilities and proposes a structural model to resolve alignment issues across business domains. In order to understand the current settings, secondary data is collected from 620 companies that are registered in the Turkish capital market to see how corporates keep IS/IT and digital governance in their board of directors. The result shows that only 42 out of 620 companies have IS/IT governance and less digital business governance structure. Furthermore, digital leadership role importance is addressed to have effective and efficient digital business governance. Conceptual analysis of this chapter with its proposed model contributes to a need for hybrid digital business governance with dynamic digital capabilities to have sustainable growth and innovation.