Decision archetypes in the information technology governance: Reflections concerning small and medium-sized enterprises

Abstract

Objectives of the study: to understand and analyze the configuration of decision archetypes, proposed by Weill and Ross (2004), in the context of Small and Medium Enterprises (SMEs). The study is justified by the increased organizational dependence on Information and Communication Technologies (ICT) and its high costs, which requires a close alignment between business strategies and the adoption of these technologies. Methodology / Approach: qualitative approach, under an inductive logic; and data collected through semi-structured and in-depth interviews, involving five owner-managers of ICT service providers and 16 directors / managers of Information Technology (IT), in SMEs. Main results: it was observed that SMEs have characteristics that facilitate the integration between business and IT, with the duopoly decision archetype prevailing. The greater concentration of power in the owner-manager or the absence of structural power of the key IT professional in these companies can, however, favor archetypes of the type of federalism or monarchy, influencing misaligned decisions between IT and business. Theoretical / methodological contributions: the findings of the study suggest that, within the organizational structures of SMEs, key IT professionals with decision-making power are supported by metrics based on quantitative aspects, supported by business intelligence systems and empirical knowledge of those involved in the process. Relevance / Originality: by proposing mechanisms for configuring decision archetypes in the Information Technology Governance (ITG) of SMEs, this study contributes significantly to the advancement of this theme, still incipient in the literature, as well as supporting new research.

Optimizing Business Value via It Governance Mechanisms: An Examination of SMEs in Southern Minas Gerais, Brazil

“…In the context of the organization's key decision-makers, ITG mechanisms are associated with interaction practices [4]. The presence of an IT professional with decision-making authority, who partakes in the decisionmaking process alongside senior management, plays a pivotal role in aligning IT with the business [11,31,32].…”

“…However, it is noteworthy that there have been recent shifts in practices from large organizations, where they were initially implemented in the early 2000s, to medium-sized organizations [34]. This phenomenon is believed to be linked to a shift in perspective, particularly among SME owners, directors, or CEOs, regarding the role of IT in business [31]. IT is no longer seen merely as an operational support function but is recognized as a strategic enabler [1].…”

“…Such a perception suggests the absence of ITG communication mechanisms [6], which could potentially shape the perception of IT-business value. Communication of the business value of IT could be amplified through formal pathways, with the aim of relaying decisions, ITG processes, and desirable behaviors throughout the organization [6,35].…”

“…Reduced levels of ITG mechanisms might result in a limited understanding of IT's strategic role across all hierarchical organization levels [35][36][37]. Consequently, the organization might fail to capitalize on the potential value and competitive advantages that could result from effective ITC IO capabilities [2,19].…”

“…From E2's (IT Coordinator) account, it is apparent that the organization acknowledges the strategic significance of IT in supporting business operations and fostering a culture of innovation. E2 underscores the need for structural power for the key IT decision-maker [35,38] and the establishment of an IT Committee to facilitate collaboration between the IT department and senior management [4,36].…”