Strategic role of IT and IT governance mechanisms for the context of small and medium enterprises

Abstract

The role of small and medium-sized enterprises in the economy is indisputable. However, these companies face great challenges to continue operating. Among them is the use of IT resources and the return on investments made. Using agency theory as a theoretical lens, this article aims to assess the relationship between the strategic use of IT in small and medium-sized companies and the IT governance mechanisms used in the context. From a survey of 68 companies in the service sector, it was possible to identify that relational IT governance mechanisms are more present in the context than structural or procedural mechanisms. It was also possible to identify that information technology, in the context, has a more operational use. Finally, using the Spearman coefficient and the Logistic Regression analyses, it was found that higher strategic levels of IT use led to greater use of governance mechanisms in the three dimensions, structural, procedural, and relational, which corroborates the view that governance is achieved from a mix of formal and informal elements.