The Influence IT Governance Mechanism on Effectiveness ITG and IT Performance: A Partial Least Squares Structural Equation Modeling Approach (PLS-SEM)
Keywords:
IT Governance effectiveness,IT Performance, Mechanism ITG, Structural Equation Modeling
Abstract
This article presents raw inferential statistical data that determine the IT Governance effectiveness on the IT Performance.To identify influence mechanism Information Technology Governance (ITG) on Effectiveness ITG and IT Performance.Data were collected from respondents in all regions of Indonesia. Quantitative research methods are used to analyze data. The structured questionnaire was distributed to respondents in all regions of Indonesia who understood the field of IT Governance in Higher University whose reliability and validity were confirmed. Structural equation modeling (SEM) using Smart PLS software, version 3, is used to present data. SEM path analysis shows an estimate of the relationship of the main constructs in the data The results obtained from this dataset shows positive relationship between mechanism Structure, Process and Relation to IT Governance effectiveness, consciousness also has a significant influence on the IT Performance and positive relationship between IT Governance effectiveness and IT Performance. However, mechanism structure and process has proven to have a negative and insignificant influence on the IT Performance Effective IT governance related to mechanism ITG and IT Performance level of unit analysis. One of the more significant findings to emerge from this study is that evaluate the mechanism ITG impact to effective IT governance that focus on higher education institution (HEI). This study already examines a validation of evaluation model and collecting data in particular higher education institution (HEI) as a single case study.
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References
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[48] A. O. Tonelli, P. H. de Souza Bermejo, P. Aparecida dos Santos, L. Zuppo, and A. L. Zambalde, “It governance in the public sector: a conceptual model,” Inf. Syst. Front., 2017, doi: 10.1007/s10796-015-9614-x.
[2] ISACA and IT Governance Institute, “Global Status Report on the Governance of Enterprise IT (GEIT)—2011,” Gov. An Int. J. Policy Adm., 2011.
[3] W. Van Grembergen, S. De Haes, and E. Guldentops, “Structures, Processes and Relational Mechanisms for IT Governance,” in Strategies for Information Technology Governance, 2011.
[4] J. W. Ross and P. Weill, “How Top Performers Manage IT Decisions Rights for Superior Results,” IT Gov., 2004, doi: 10.2139/ssrn.664612.
[5] P. Subsermsri, K. Jairak, and P. Praneetpolgrang, “Information technology governance practices based on sufficiency economy philosophy in the thai university sector,” Inf. Technol. People, 2015, doi: 10.1108/ITP-10-2013-0188.
[6] M. Hicks, G. Pervan, and B. Perrin, “A study of the review and improvement of IT governance in Australian universities in Australian universities,” Int. Conf. Inf. Resour. Manag., 2012.
[7] P. Weil and J. W. Ross, “IT Governance : How Top Performers Manage IT,” Int. J. Eletronic Gov. Res., 2005, doi: 10.2139/ssrn.664612.
[8] S. Ali and P. Green, “Effective information technology governance mechanisms in public sectors: An Australian case,” in PACIS 2006 - 10th Pacific Asia Conference on Information Systems: ICT and Innovation Economy, 2006.
[9] E. N. Nfuka and L. Rusu, “The effect of critical success factors on IT governance performance,” Ind. Manag. Data Syst., 2011, doi: 10.1108/02635571111182773.
[10] I. S. Bianchi and R. D. Sousa, “IT Governance Mechanisms in Higher Education,” in Procedia Computer Science, 2016, doi: 10.1016/j.procs.2016.09.253.
[11] N. Bajgoric, “Business continuity management: A systemic framework for implementation,” Kybernetes, 2014, doi: 10.1108/K-11-2013-0252.
[12] S. Conger, M. Winniford, and L. Erickson-Harris, “Service management in operations,” in 14th Americas Conference on Information Systems, AMCIS 2008, 2008.
[13] S. P. J. Wu, D. W. Straub, and T. P. Liang, “How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and it managers,” MIS Q. Manag. Inf. Syst., 2015, doi: 10.25300/MISQ/2015/39.2.10.
[14] R. Yanosky, “Institutional Data Management in Higher Education,” 2009.
[15] W. Peter and R. Jeanne, “A Matrixed Approach to Designing IT Governance,” MIT Sloan Manag. Rev., 2005.
[16] G. L. Lunardi, J. L. Becker, A. C. G. Maçada, and P. C. Dolci, “The impact of adopting IT governance on financial performance: An empirical analysis among Brazilian firms,” Int. J. Account. Inf. Syst., 2014, doi: 10.1016/j.accinf.2013.02.001.
[17] R. Pereira, R. Almeida, and M. M. Da Silva, “IT governance patterns in the portuguese financial industry,” in Proceedings of the Annual Hawaii International Conference on System Sciences, 2014, doi: 10.1109/HICSS.2014.541.
[18] R. Pereira, M. Mira da Silva, and L. V. Lapão, “Business/IT Alignment through IT Governance Patterns in Portuguese Healthcare,” Int. J. It/bus. Alignment Gov., 2014, doi: 10.4018/ijitbag.2014010101.
[19] W. Van Grembergen and S. De Haes, Enterprise governance of information technology: Achieving strategic alignment and value. 2009.
[20] P. Weill, “IT governance-don’t just lead, govern: How top-performing firms govern it,” in Strategic Information Management: Challenges and Strategies in Managing Information Systems, 2014.
[21] P. M. A. Ribbers, R. R. Peterson, and M. M. Parker, “Designing information technology governance processes: Diagnosing contemporary practices and competing theories,” in Proceedings of the Annual Hawaii International Conference on System Sciences, 2002, doi: 10.1109/HICSS.2002.994351.
[22] S. De Haes and W. Van Grembergen, Enterprise Governance of Information Technology. 2009.
[23] S. De Haes and W. Van Grembergen, “IT governance structures, processes and relational mechanisms: Achieving IT/business alignment in a major Belgian financial group,” in Proceedings of the Annual Hawaii International Conference on System Sciences, 2005, doi: 10.1109/hicss.2005.362.
[24] R. Setyadi, A. Subiyakto, and A. B. Abd Rahman, “Assessing the Information Technology Governance Trust Using Readiness and Usability Models: A Model Development Study,” in Proceeding - 2018 International Conference on ICT for Rural Development: Rural Development through ICT: Concept, Design, and Implication, IC-ICTRuDEv 2018, 2019, doi: 10.1109/ICICTR.2018.8706852.
[25] P. Weill and R. Woodham, “Don’t Just Lead, Govern: Implementing Effective IT Governance,” SSRN Electron. J., 2005, doi: 10.2139/ssrn.317319.
[26] C. Ferguson, P. Green, R. Vaswani, and G. Wu, “Determinants of Effective Information Technology Governance,” Int. J. Audit., 2013, doi: 10.1111/j.1099-1123.2012.00458.x.
[27] P. Webb, C. Pollard, and G. Ridley, “Attempting to define IT governance: Wisdom or folly?,” in Proceedings of the Annual Hawaii International Conference on System Sciences, 2006, doi: 10.1109/HICSS.2006.68.
[28] M. N. Kooper, R. Maes, and E. E. O. R. Lindgreen, “On the governance of information: Introducing a new concept of governance to support the management of information,” Int. J. Inf. Manage., 2011, doi: 10.1016/j.ijinfomgt.2010.05.009.
[29] S. Ali and P. Green, “Effective information technology (IT) governance mechanisms: An IT outsourcing perspective,” Inf. Syst. Front., 2012, doi: 10.1007/s10796-009-9183-y.
[30] G. Heindrickson and C. D. Santos Jr, “Information Technology Governance in Public Organizations: How Perceived Effectiveness Relates To Three Classical Mechanisms,” J. Inf. Syst. Technol. Manag., vol. 11, no. 2, pp. 297–326, 2014, doi: 10.4301/s1807-17752014000200005.
[31] S. Ali and P. Green, “IT governance mechanisms in public sector organisations: An Australian context,” J. Glob. Inf. Manag., 2007, doi: 10.4018/jgim.2007100103.
[32] M. Simonsson and P. Johnson, “Defining IT governance - A consolidation of literature,” tEARP Work. Pap. MS103, 2006, doi: 10.1.1.64.6388.
[33] P. Weill and J. W. Ross, “IT Governance on One Page,” SSRN Electron. J., 2011, doi: 10.2139/ssrn.664612.
[34] R. Huang, R. W. Zmud, and R. L. Price, “Influencing the effectiveness of IT governance practices through steering committees and communication policies,” Eur. J. Inf. Syst., 2010, doi: 10.1057/ejis.2010.16.
[35] N. Mohamed, J. Kaur, and G. Singh, “A conceptual framework for information technology governance effectiveness in private organizations,” Inf. Manag. Comput. Secur., 2012, doi: 10.1108/09685221211235616.
[36] A. O. Tonelli, P. H. de Souza Bermejo, P. Aparecida dos Santos, L. Zuppo, and A. L. Zambalde, “It governance in the public sector: a conceptual model,” Inf. Syst. Front., 2017, doi: 10.1007/s10796-015-9614-x.
[37] R. R. Peterson, “Integration strategies and tactics for information technology governance,” in Developing Successful ICT Strategies: Competitive Advantages in a Global Knowledge-Driven Society, 2007.
[38] M. S. Aurora Sanchez Ortiz, B.S., Ebook TESTING A MODEL OF THE RELATIONSHIPS AMONG ORGANIZATIONAL PERFORMANCE, IT-BUSINESS ALIGNMENT, AND IT GOVERNANCE. UNIVERSITY OF NORTH TEXAS, 2003.
[39] B. Gu, L. Xue, and G. Ray, “IT governance and IT investment performance: An empirical analysis,” in ICIS 2008 Proceedings - Twenty Ninth International Conference on Information Systems, 2008, doi: 10.2139/ssrn.1145102.
[40] H. Ajayi, B.A. Hussin, “ITG_in_University_Practitioners,” J. Theor. Appl. Inf. Technol., vol. 88, pp. 219–230, 2016.
[41] M. Soliman and A. H. M. Zaky, “The Mediating Role of IT Governance Effectiveness between ITG and Financial/ Non-Financial Performance: Empirical Research on Egyptian Banking Sector,” SSRN Electron. J., 2018, doi: 10.2139/ssrn.3119507.
[42] S. Ali and P. Green, “Determinants of Effective Information Technology Governance : A Study of IT Intensity,” Proc. Int. IT Gov. Conf., 2005.
[43] A. Shuhaiber, “The role of perceived control, enjoyment, cost, sustainability and trust on intention to use smart meters: An empirical study using SEM-PLS,” in Advances in Intelligent Systems and Computing, 2018, doi: 10.1007/978-3-319-77712-2_74.
[44] C. M. Ringle, M. Sarstedt, and D. W. Straub, “A critical look at the use of PLS-SEM in MIS quarterly,” MIS Quarterly: Management Information Systems. 2012.
[45] F. Quoquab, S. Pahlevan, J. Mohammad, and R. Thurasamy, “Factors affecting consumers’ intention to purchase counterfeit product,” Asia Pacific J. Mark. Logist., 2017, doi: 10.1108/apjml-09-2016-0169.
[46] N. Venkatraman, J. C. Henderson, and S. Oldach, “Continuous strategic alignment: Exploiting information technology capabilities for competitive success,” Eur. Manag. J., 1993, doi: 10.1016/0263-2373(93)90037-I.
[47] S. S. Maidin and N. H. Arshad, “IT governance practices model in IT project approval and implementation in Malaysian public sector,” in ICEIE 2010 - 2010 International Conference on Electronics and Information Engineering, Proceedings, 2010, doi: 10.1109/ICEIE.2010.5559690.
[48] A. O. Tonelli, P. H. de Souza Bermejo, P. Aparecida dos Santos, L. Zuppo, and A. L. Zambalde, “It governance in the public sector: a conceptual model,” Inf. Syst. Front., 2017, doi: 10.1007/s10796-015-9614-x.
Published
2021-05-27
How to Cite
Anwar Fattah, Hoga Saragih, Titik Khawa Abdul Rahman, & Resad Setyadi. (2021). The Influence IT Governance Mechanism on Effectiveness ITG and IT Performance: A Partial Least Squares Structural Equation Modeling Approach (PLS-SEM) . International Journal of Science, Technology & Management, 2(3), 568-581. https://doi.org/10.46729/ijstm.v2i3.212
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Articles
