A conceptual framework on IT governance impact on organizational performance: A dynamic capability perspective

Abstract

Recent years have seen substantial growth in Information Technology Governance (ITG) research. However, the influence of ITG on organizational performance has been less covered and very little theorized. To address this gap, the purpose of this paper is to build a conceptual framework to provide a better understanding of ITG contribution to organizational performance. Based on an extensive literature review on ITG and guided by the dynamic capabilities perspective, the proposed conceptual framework analyses the ITG – Organizational Performance relationship through the lenses of the dynamic capability perspective and generate a set of five research propositions. The proposed framework suggests that the effectiveness of ITG mechanisms (structures, processes, and relational mechanisms), contribute to the development of a dynamic ITG competence which has an impact on the development of IT management capabilities and their evolution. Moreover, the proposed conceptual framework suggests that ITG is more likely to lead to better organizational performance when IT management capabilities are developed in line with business strategy.