Complementarities Between Organizational IT Architecture and Governance Structure

Abstract

This study addresses the theoretically neglected interplay between organizational information technology (IT) architecture and IT governance structure in shaping IT alignment. We theoretically develop the idea that IT architecture modularity helps sustain IT alignment by increasing IT agility, and that decentralization of IT governance strengthens this relationship. IT architecture therefore complements IT governance structure. Tests of the proposed mediated-moderation model using data from 223 organizations support these ideas. Implications for theory and practice are also discussed.

The Transformative Role of Bimodal IT in an Era of Digital Business

“…Moreover, it is able to comprehend changes in the firm's environment and respond rapidly. Conceived as an antecedent to organization agility, IT agility allows firms to rapidly respond to competitive actions from a greater repertoire of responses [22] and, in the context of alignment, enables swift correction of misalignment between business and IT [27].…”

“…Firstly, with digital disruption increasingly affecting traditional business models, IT must not only support the organization in increasing its agility, but the IT function itself must also gain agility [27]. Secondly, IT agility needs to be complemented by an organizational culture that fosters agility.…”

Designing an Agile Software Portfolio Architecture: The Impact of Coupling on Performance

“…In response to calls for a greater focus on the "IT Artifact" a distinct stream of research began to explore how a firm's information systems could facilitate the development of new capabilities (Orlikowski and Iacono, 2001;Tiwana and Konsynski, 2010). Hence modern theories emphasize the need for IT architectures that facilitate agility, through the use of layered, modular technologies (Yoo et al, 2010;Tanriverdi et al, 2010;Tiwana et al, 2010).…”

“…Hence modern theories emphasize the need for IT architectures that facilitate agility, through the use of layered, modular technologies (Yoo et al, 2010;Tanriverdi et al, 2010;Tiwana et al, 2010). Firms with modular architectures can quickly reconfigure resources to respond to new challenges, ensuring a continuous alignment of IT assets with changing business needs.…”

“…Most studies adopt the firm as unit of analysis, capture broad holistic measures of IT infrastructure flexibility and assess the impact of these constructs on measures of overall firm performance (Duncan, 1995). For example, Tiwana and Konsynski (2010) show that firms with more modular IT architectures (i.e., that make greater use of loosely-coupled, standardized components) have higher perceived levels of IT agility. However, firms are not monolithic.…”