IDEAS home Printed from https://ideas.repec.org/a/eee/ijoais/v54y2024ics1467089524000277.html
   My bibliography  Save this article

Board roles required for IT governance to become an integral component of corporate governance

Author

Listed:
  • Caluwe, Laura
  • Wilkin, Carla L.
  • De Haes, Steven
  • Huygh, Tim

Abstract

Digitization is fundamentally changing how organizations create and deliver business value, with information technology (IT) leveraged to improve business processes and controls. Its pervasive effects upon organizations’ risk exposures and performance requires boards’ prudent and integrated consideration of the resultant IT opportunities and risk management. However, IT governance research suggests that boards’ governance of IT is more commonly delegated and relegated to management and committees than integrated as part of their corporate governance practices. In response, our study contributes timely and structured understanding of boards’ roles and the mechanisms required for IT governance to become an integrated component of corporate governance.

Suggested Citation

  • Caluwe, Laura & Wilkin, Carla L. & De Haes, Steven & Huygh, Tim, 2024. "Board roles required for IT governance to become an integral component of corporate governance," International Journal of Accounting Information Systems, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:ijoais:v:54:y:2024:i:c:s1467089524000277
    DOI: 10.1016/j.accinf.2024.100694
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1467089524000277
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.accinf.2024.100694?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. José V. Frias‐Aceituno & Lazaro Rodriguez‐Ariza & I.M Garcia‐Sanchez, 2013. "The Role of the Board in the Dissemination of Integrated Corporate Social Reporting," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 20(4), pages 219-233, July.
    2. Ronald F. Premuroso & Somnath Bhattacharya, 2007. "Is There a Relationship between Firm Performance, Corporate Governance, and a Firm's Decision to Form a Technology Committee?," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1260-1276, November.
    3. Philip Stiles, 2001. "The Impact of the Board on Strategy: An Empirical Examination," Journal of Management Studies, Wiley Blackwell, vol. 38(5), pages 627-650, July.
    4. Renee B. Adams & Benjamin E. Hermalin & Michael S. Weisbach, 2010. "The Role of Boards of Directors in Corporate Governance: A Conceptual Framework and Survey," Journal of Economic Literature, American Economic Association, vol. 48(1), pages 58-107, March.
    5. Violina P. Rindova, 1999. "What Corporate Boards have to do with Strategy: A Cognitive Perspective," Journal of Management Studies, Wiley Blackwell, vol. 36(7), pages 953-975, December.
    6. Xie, Biao & Davidson, Wallace III & DaDalt, Peter J., 2003. "Earnings management and corporate governance: the role of the board and the audit committee," Journal of Corporate Finance, Elsevier, vol. 9(3), pages 295-316, June.
    7. Shleifer, Andrei & Vishny, Robert W, 1997. "A Survey of Corporate Governance," Journal of Finance, American Finance Association, vol. 52(2), pages 737-783, June.
    8. Barroso-Castro, Carmen & Villegas-Periñan, Mª Mar & Dominguez, Marta, 2017. "Board Members’ Contribution To Strategy: The Mediating Role Of Board Internal Processes," European Research on Management and Business Economics (ERMBE), Academia Europea de Dirección y Economía de la Empresa (AEDEM), vol. 23(2), pages 82-89.
    9. Prasad, Acklesh & Heales, Jon & Green, Peter, 2010. "A capabilities-based approach to obtaining a deeper understanding of information technology governance effectiveness: Evidence from IT steering committees," International Journal of Accounting Information Systems, Elsevier, vol. 11(3), pages 214-232.
    10. Johan Magnusson & Dina Koutsikouri & Tero Päivärinta, 2020. "Efficiency creep and shadow innovation: enacting ambidextrous IT Governance in the public sector," European Journal of Information Systems, Taylor & Francis Journals, vol. 29(4), pages 329-349, July.
    11. Amy J. Hillman & Albert A. Cannella & Ramona L. Paetzold, 2000. "The Resource Dependence Role of Corporate Directors: Strategic Adaptation of Board Composition in Response to Environmental Change," Journal of Management Studies, Wiley Blackwell, vol. 37(2), pages 235-256, March.
    12. Karla Johnstone & Chan Li & Kathleen Hertz Rupley, 2011. "Changes in Corporate Governance Associated with the Revelation of Internal Control Material Weaknesses and Their Subsequent Remediation," Contemporary Accounting Research, John Wiley & Sons, vol. 28(1), pages 331-383, March.
    13. Aurélie Leclercq-Vandelannoitte & Emmanuel Bertin, 2018. "From sovereign IT governance to liberal IT governmentality? A Foucauldian analogy," European Journal of Information Systems, Taylor & Francis Journals, vol. 27(3), pages 326-346, May.
    14. David W. Anderson & Stewart J. Melanson & Jiri Maly, 2007. "The Evolution of Corporate Governance: power redistribution brings boards to life," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(5), pages 780-797, September.
    15. K.V. Peasnell & P.F. Pope & S. Young, 2005. "Board Monitoring and Earnings Management: Do Outside Directors Influence Abnormal Accruals?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(7‐8), pages 1311-1346, September.
    16. Holder, Anthony & Karim, Khondkar & Lin, Karen (Jingrong) & Pinsker, Robert, 2016. "Do material weaknesses in information technology-related internal controls affect firms' 8-K filing timeliness and compliance?," International Journal of Accounting Information Systems, Elsevier, vol. 22(C), pages 26-43.
    17. C. B. Ingley & N. T. Van der Walt, 2001. "The Strategic Board: the changing role of directors in developing and maintaining corporate capability," Corporate Governance: An International Review, Wiley Blackwell, vol. 9(3), pages 174-185, July.
    18. Kalin D. Kolev & David B. Wangrow & Vincent L. Barker & Donald J. Schepker, 2019. "Board Committees in Corporate Governance: A Cross‐Disciplinary Review and Agenda for the Future," Journal of Management Studies, Wiley Blackwell, vol. 56(6), pages 1138-1193, September.
    19. G. R. Oliver & R. G. Walker, 2006. "Reporting on software development projects to senior managers and the board," Abacus, Accounting Foundation, University of Sydney, vol. 42(1), pages 43-65, March.
    20. Venkatraman, N. & Henderson, John C. & Oldach, Scott, 1993. "Continuous strategic alignment: Exploiting information technology capabilities for competitive success," European Management Journal, Elsevier, vol. 11(2), pages 139-149, June.
    21. Renée B. Adams & Daniel Ferreira, 2007. "A Theory of Friendly Boards," Journal of Finance, American Finance Association, vol. 62(1), pages 217-250, February.
    22. Sanjeev Bhojraj & Partha Sengupta, 2003. "Effect of Corporate Governance on Bond Ratings and Yields: The Role of Institutional Investors and Outside Directors," The Journal of Business, University of Chicago Press, vol. 76(3), pages 455-476, July.
    23. Reggy Hooghiemstra & Jaap Van Manen, 2004. "The Independence Paradox: (im)possibilities facing non‐executive directors in The Netherlands," Corporate Governance: An International Review, Wiley Blackwell, vol. 12(3), pages 314-324, July.
    24. K.V. Peasnell & P.F. Pope & S. Young, 2005. "Board Monitoring and Earnings Management: Do Outside Directors Influence Abnormal Accruals?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(7-8), pages 1311-1346.
    25. Pugliese, A. & Bezemer, P.J. & Zattoni, A. & Huse, M. & van den Bosch, F.A.J. & Volberda, H.W., 2009. "Boards of Directors’ Contribution to Strategy: A Literature Review and Research Agenda," ERIM Report Series Research in Management ERS-2009-013-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    26. Jacob Haislip & Jee-Hae Lim & Robert Pinsker, 2021. "The Impact of Executives’ IT Expertise on Reported Data Security Breaches," Information Systems Research, INFORMS, vol. 32(2), pages 318-334, June.
    27. Brickley, James A. & Zimmerman, Jerold L., 2010. "Corporate governance myths: Comments on Armstrong, Guay, and Weber," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 235-245, December.
    28. Ofir Turel & Chris Bart, 2014. "Board-level IT governance and organizational performance," European Journal of Information Systems, Taylor & Francis Journals, vol. 23(2), pages 223-239, March.
    29. Turel, Ofir & Liu, Peng & Bart, Chris, 2019. "Is board IT governance a silver bullet? A capability complementarity and shaping view," International Journal of Accounting Information Systems, Elsevier, vol. 33(C), pages 32-46.
    30. Yasemin Y. Kor & Vilmos F. Misangyi, 2008. "Outside directors' industry‐specific experience and firms' liability of newness," Strategic Management Journal, Wiley Blackwell, vol. 29(12), pages 1345-1355, December.
    31. Sascha L. Schmidt & Matthias Brauer, 2006. "Strategic Governance: how to assess board effectiveness in guiding strategy execution," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(1), pages 13-22, January.
    32. Steinbart, Paul John & Raschke, Robyn L. & Gal, Graham & Dilla, William N., 2018. "The influence of a good relationship between the internal audit and information security functions on information security outcomes," Accounting, Organizations and Society, Elsevier, vol. 71(C), pages 15-29.
    33. Yangmin Kim & Albert A. Cannella, 2008. "Toward a Social Capital Theory of Director Selection," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(4), pages 282-293, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Naeem Tabassum & Satwinder Singh, 2020. "Corporate Governance and Organisational Performance," Springer Books, Springer, number 978-3-030-48527-6, September.
    2. Nguyen, Quynh & Kim, Maria H. & Ali, Searat, 2024. "Corporate governance and earnings management: Evidence from Vietnamese listed firms," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 775-801.
    3. J. Yo-Jud Cheng & Boris Groysberg & Paul Healy & Rajesh Vijayaraghavan, 2021. "Directors’ Perceptions of Board Effectiveness and Internal Operations," Management Science, INFORMS, vol. 67(10), pages 6399-6420, October.
    4. Armstrong, Christopher S. & Guay, Wayne R. & Weber, Joseph P., 2010. "The role of information and financial reporting in corporate governance and debt contracting," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 179-234, December.
    5. Åberg, Carl & Bankewitz, Max & Knockaert, Mirjam, 2019. "Service tasks of board of directors: A literature review and research agenda in an era of new governance practices," European Management Journal, Elsevier, vol. 37(5), pages 648-663.
    6. Li, Yong & Aguilera, Ruth V., 2008. "Target Director Turnover in Acquisitions: A Conceptual Framework," Working Papers 08-0106, University of Illinois at Urbana-Champaign, College of Business.
    7. Yong Li & Ruth V. Aguilera, 2008. "Target Director Turnover in Acquisitions: A Conceptual Framework," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(6), pages 492-503, November.
    8. Chenglong Zheng & Roy Kouwenberg, 2019. "A Bibliometric Review of Global Research on Corporate Governance and Board Attributes," Sustainability, MDPI, vol. 11(12), pages 1-25, June.
    9. Datta, Deepak K. & Basuil, Dynah A. & Agarwal, Ankita, 2020. "Effects of board characteristics on post-acquisition performance: A study of cross-border acquisitions by firms in the manufacturing sector," International Business Review, Elsevier, vol. 29(3).
    10. Wu, Soushan & Chen, Chin-Mei & Lee, Pei-Ching, 2016. "Independent directors and earnings management: The moderating effects of controlling shareholders and the divergence of cash-flow and control rights," The North American Journal of Economics and Finance, Elsevier, vol. 35(C), pages 153-165.
    11. Md Arafat Hossain & Elaine Yen Nee Oon, 2022. "Board leadership, board meeting frequency and firm performance in two‐tier boards," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 862-879, April.
    12. Du, Yan & Deloof, Marc & Jorissen, Ann, 2015. "The Roles of Subsidiary Boards in Multinational Enterprises," Journal of International Management, Elsevier, vol. 21(3), pages 169-181.
    13. Hermes, Cornelis & Oxelheim, L. & Randoy, Trond & Hooghiemstra, Reginald, 2015. "The impact of board internationalization on earnings management," Research Report 15010-I&O, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    14. Nguyen, Thi Tuyet Mai, 2017. "An examination of independent directors in Vietnam," OSF Preprints ay6dv, Center for Open Science.
    15. Henrique Castro Martins & Cristiano Machado Costa, 2020. "Does control concentration affect board busyness? International evidence," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 821-850, September.
    16. Pieter‐Jan Bezemer & Gregory F. Maassen & Frans A. J. Van den Bosch & Henk W. Volberda, 2007. "Investigating the Development of the Internal and External Service Tasks of Non‐executive Directors: the case of the Netherlands (1997–2005)," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1119-1129, November.
    17. Hooghiemstra, Reggy & Hermes, Niels & Oxelheim, Lars & Randøy, Trond, 2019. "Strangers on the board: The impact of board internationalization on earnings management of Nordic firms," International Business Review, Elsevier, vol. 28(1), pages 119-134.
    18. Pugliese, A. & Bezemer, P.J. & Zattoni, A. & Huse, M. & van den Bosch, F.A.J. & Volberda, H.W., 2009. "Boards of Directors’ Contribution to Strategy: A Literature Review and Research Agenda," ERIM Report Series Research in Management ERS-2009-013-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    19. Patrick Velte, 2010. "The link between supervisory board reporting and firm performance in Germany and Austria," European Journal of Law and Economics, Springer, vol. 29(3), pages 295-331, June.
    20. Aziz Jaafar & Lynn Hodgkinson & Mao-Feng Kao, 2019. "Ownership Structure, Board of Directors and Firm Performance: Evidence from Taiwan," Working Papers 19011, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ijoais:v:54:y:2024:i:c:s1467089524000277. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-accounting-information-systems/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.