Board IT Governance in Context: Considering Governance Style and Environmental Dynamism Contingencies

ABSTRACT

We theorize that IT governance (ITG) by the board of directors is most effective when there is a fit between the dynamics of the business environment and the governance style through which board ITG is delivered. Survey findings from 110 board members largely supported these assertions. Findings show that authoritative governance style and environmental dynamism represent important boundary conditions for the efficacy of board ITG to achieve performance gains. Research and practical implications are discussed.

KEYWORDS:

• IT governance
• IS leadership
• board of directors
• firm performance
• governance style
• environmental dynamism

Notes

1. We used tools in http://www.jeremydawson.co.uk/slopes.htm for plotting and path comparisons.

Additional information

Notes on contributors

Peng Liu

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 Ph.D. from Eli Broad College of Business, Michigan State University. His research interests include business value of IT, organizational routines and capabilities, and IT governance. He has published articles in journals such as MIS Quarterly, Journal of Management Studies, Information Systems Management, International Journal of Accounting Information Systems, and IT Professional.

Ofir Turel

Ofir Turel is a professor of information systems and decision sciences at the College of Business and Economics, California State University, Fullerton. Before joining the academia, he held senior positions in the IT and telecommunications industries. His research interests include a broad range of behavioral and managerial issues in various IS contexts. He published over 100 articles in journals such as MIS Quarterly, Journal of MIS, European Journal of Information Systems, Communications of the ACM, MIT Sloan Management Review, Information Systems Journal, Journal of Information Systems, Telecommunications Policy, and Communications in Statistics.

Chris Bart

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). He is also the Founder of 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.” He has also published over 100 other articles, cases, and reviews.