Identification of Influential Factors in Implementing IT Governance: A Survey Study of Indonesian Companies in the Public Sector

Abstract

Aim/Purpose: This study is carried out to determine the factors influencing the implementation of IT governance in public sector. Background: IT governance in organizations plays strategic roles in deciding whether IT strategies and investments of both private and public organizations could be efficient, consistent, and transparent. IT governance has the potential to be the best practice that could improve organizational performance and competency. Methodology: The study involves qualitative and quantitative approaches, where data were collected through questionnaire, observation, interview, and document study through a sample of 367 respondents. The collected data were analyzed using Structured Equation Modeling (SEM) for validating the model and testing the hypotheses. Besides, semi-structured interview, observation, and document study were also carried out to obtain the management’s feedback on the implementation of IT governance and its activities. Contribution: The results of this study contribute to knowledge regarding good IT governance. Practically, this study can be used as a guideline for the future development and good IT governance. Findings: The findings reveal that policy has a significant direct influence on system planning, the management of IT investment, system realization, operation and maintenance, and organizational culture. The existence of IT governance policies, the success of the IT process can work well. Monitoring and evaluation processes also significantly affect system plan-ning, management of IT investment, system realization, operation and maintenance, and organizational culture. It indicates the process of monitoring and evaluation required for indications of financial efficiency, infrastructure, resources, risk and organizational success. Recommendations for Practitioners: It is important for organizational management to pay more attention to the organization’s internal controls in order to create good IT governance. Recommendation for Researchers: A comparative study between Indonesia and developing countries on the implementation of IT governance is needed to capture the differences be-tween those countries. Impact on Society: Knowledge of the factors influencing the implementation of IT governance as an effort to implement and improve the quality of IT governance. Future Research: Future studies should look further at the policy and IT governance models, specifically in public organizations, besides other influencing factors. Moreover, the outcome of this study could be generated as a guideline for the advanced development of IT governance and as a point of improvement as a way to generate a better good IT governance. It is essential because such evidence is lacking in current literature.

Core model of information technology governance system design in local government

“…Designing and understanding good governance should avoid implementation failures, adopt IT recovery during disasters, and sustain operations under every condition. This aligns with research that states that understanding the concept of governance is important because it sets the boundaries and scope of function and government purpose [16].…”

The Role of Knowledge Management Process and Intellectual Capital as Intermediary Variables between Knowledge Management Infrastructure and Organization Performance

“…Managers should help to create a suitable environment for smooth knowledge sharing among all employees in the organization and provide advanced technological tools through constant upgrading and updating, especially, the hardware and software that contribute to the dissemination and sharing of knowledge, and databases to store knowledge to facilitate knowledge retrieval. Furthermore, researchers (Amali & Katili, 2018;Masa'deh et al, 2016;Obeidat et al, 2017) stressed the important role of knowledge management capabilities in improving organization performance in private and public sectors. Consequently, managers can use the current research model that facilitates their work places to end with a better organizational performance results.…”

The Impacts of Information Technology Governance on Internal Auditing: A literature Review

“…While, the ITG defines as "an executive-level task that ensures the effective and efficient use of IT assets within an organization through the strategic alignment of IT portfolios with business objectives at every stage of IT lifecycle in that organization" (Martin, 2013). ITG also defined by (Amali & Katili, 2018) as "the ability of top management and IT management is strategizing and implementing IT strategies in supporting their organization".…”