Board-Level Information Technology Governance Effects on Organizational Performance: The Roles of Strategic Alignment and Authoritarian Governance Style

ABSTRACT

We report on two empirical studies that explore key factors that help translate information technology governance by the board of directors into organizational performance. The first study shows that strategic alignment partially mediates the effect of board-level information technology governance on performance. The second study demonstrates that authoritarian governance style negatively moderates the effect of board-level information technology governance on performance. Together, these studies open up the black box between board-level information technology governance and organizational performance.

KEYWORDS:

• Board of directors
• IT governance
• management/leadership style
• organizational contingency theory
• organizational performance
• parenting style
• resource-based view
• strategic alignment

Additional information

Notes on contributors

Ofir Turel

Dr. Ofir Turel is a professor of information systems and decision sciences at the Information Systems and Decision Sciences Department, California State University, Fullerton. Before joining the academia, he held senior positions in the information technology and telecommunications industries. His research interests include a broad range of behavioral, bio-physiological, and managerial issues in various information systems contexts. He published over 70 articles in journals such as MIS Quarterly, Journal of MIS, MIT Sloan Management Review, European Journal of Information Systems, Communications of the ACM, Information and Management, Information Systems Journal, Journal of Information Systems, and many others.

Peng Liu

Dr. Peng Liu is an assistant professor of information systems and decision sciences at the College of Business and Economics, California State University, Fullerton. He received his PhD from Eli Broad College of Business at Michigan State University. His research interests include business value of IT, organizational routines and capabilities, IT governance, and trust in technologies.

Chris Bart

Dr. Chris Bart is a retired professor of Strategic Market Leadership (Strategy and Governance) at the DeGroote School of Business, McMaster University, Hamilton, Ontario, and is the Principal with Corporate Missions Inc. (http://www.corporatemissionsinc.com). In 2003, he helped found The Directors College: Canada’s first university accredited director education program. He is the author of the Canadian Business #1 best seller, “A Tale of Two Employees and the Person Who Wanted to Lead Them,” as well as the Canadian Institute for Chartered Accountants (CICA) Publication, “20 Questions for Directors About Strategy.” He has also published over 100 other articles, cases, and reviews.