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, the extent of IT outsourcing decisions within the organizations, and the level of IT Intensity in the organizations. We used structural equation modeling analysis to examine 110 responses from members of ISACA (Information Systems and Audit Control Association) Australia in which their organizations have outsourced their IT functions. Results suggest significant positive relationships between the overall level of effective IT governance and the following mechanisms: the involvement of senior management in IT, the existence of ethic or culture of compliance in IT, and corporate communication systems.

While the growth in the number of IT investments remains strong, research in the IT investment field is limited, resulting in suboptimal practical guidance on effectively governing IT investments. Based on resource-based theory, this paper reports the initial work involved in developing a construct named IT investment governance (ITIG), because it can be used to measure organizations' capability to govern their IT investments. This paper then empirically examines the association of ITIG and corporate performance. The preliminary result is a four-factor, 16-item instrument for assessing the ITIG construct. This method's factors are IT investment value governance, IT investment value monitoring, IT investment appraisals and IT investment project management. The impact of ITIG on corporate performance was demonstrated with a significant and positive relationship found to exist between the ITIG construct and corporate performance, thus supporting the effectiveness of the ITIG construct. Corporations with higher levels of ITIG capability are more likely to maximize the contribution of their IT investments to firm value.

Information technology plays a significant role enabling organisations to achieve their objectives. Accordingly, the governance mechanisms over the organisation’s IT resources must be in place and operating effectively if the organization is to achieve its objectives. The concern with IT governance is not only evident in the private sector but also in the public sector. This study attempts to examine empirically the individual IT governance mechanisms that influence the overall effectiveness of IT governance in Australian public sector organisations. Using sample data from auditors who currently work in Australian public sector organisations, this study examined the influence of four proposed individual IT governance mechanisms on the overall effectiveness of IT governance. This study found significant positive relationships between the existence of an IT strategy committee and corporate (organisational) communication systems, and the overall level of effective IT governance within Australian public sector organisations.

Information technology plays a significant role enabling organisations to achieve their objectives. Accordingly, the governance mechanisms over the organisation’s IT resources must be in place and operating effectively if the organization is to achieve its objectives. The concern with IT governance is not only evident in the private sector but also in the public sector. This study attempts to examine empirically the individual IT governance mechanisms that influence the overall effectiveness of IT governance in Australian public sector organisations. Using sample data from auditors who currently work in Australian public sector organisations, this study examined the influence of four proposed individual IT governance mechanisms on the overall effectiveness of IT governance. This study found significant positive relationships between the existence of an IT strategy committee and corporate (organisational) communication systems, and the overall level of effective IT governance within Australian public sector organisations.

Top management's involvement in IT governance appears to positively influence the establishment and implementation of effective IT governance within organizations. Considering the lack of advancement in the area in practice, this study offers a deeper understanding of dimensions that help to explain top management's knowledge of IT governance. Using absorptive capacity as its theoretical underpinning, and based on Australian empirical data, this study shows that for top management to achieve higher levels of absorptive capacity of IT governance knowledge (ACAP-ITG), they need to focus on four dimensions: prior relevant knowledge, effective communication network, appropriate communication climate, and effective knowledge scanning. To further support the usefulness of the ACAP-ITG construct, this study empirically tested the relationship between the construct and corporate performance. This study presents top management in organizations with useful measures that can help them assess their organization's strengths and weaknesses related to ACAP-ITG.