Measuring Top Management's IT Governance Knowledge Absorptive Capacity

Abstract

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.

Information technology investment governance: What is it and does it matter?

“…2.46 2.14 studies (i.e., Premkumar and King, 1992;Saunders and Jones, 1992;Ali et al, 2013). Based on the criteria set out by Jarvis et al (2003), the ITIG construct, firm efficiency, and strategic growth were modeled as reflective constructs.…”

Enhancing Green Absorptive Capacity, Green Dynamic Capacities and Green Service Innovation to Improve Firm Performance: An Analysis of Structural Equation Modeling (SEM)

“…Furthermore, Lane et al [29] indicate that absorptive capacity improves firm performance. Syaiful et al [30] indicate that absorptive capacity of IT governance knowledge amongst the finest management team members is positively associated with corporate performance. Green absorptive capacity signifies to the ability to comprehend, connect, combine, identify and apply environmental knowledge [1].…”

Exploring the Influence of Executive Management Diversity on IT Governance

“…Strong and committed executive management leadership supports the evolution and application of IT governance through clear organizational direction or strategies (Wilson & Pollard, 2009). Overall, executive management involvement seems to contribute to IT governance effectiveness (Ali et al, 2013). In view of these results, executive management appears to enhance IT governance through its leadership, involvement/participation in, support, and commitment to IT-related strategic choices.…”

“…In spite of this large body of literature, a limited number of studies investigate the influence of executive management characteristics on IT governance in particular (e.g., executive management's knowledge of IT governance in Ali et al, 2013; and executive management's frames of reference in relation to IT in Bruque & Moyano, 2007, as indicated in Newby et al, 2014. Furthermore, to our knowledge, no studies have as yet examined the influence of executive management diversity on IT governance.…”

“…Executive management's knowledge of its business and an understanding of IT issues are important to achieve IT-business alignment (Wilson & Pollard, 2009). More specifically, executive management with an adequate base of prior IT governance knowledge is more qualified to lead and control IT governance, and better at aligning business and IT (Ali et al, 2013). In this study, we assume that executive management's prior relevant knowledge of IT governance structures, processes and relational mechanisms could be built on executive management diversity in terms of educational, functional or industry backgrounds and tenure.…”