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Governing information technology (IT) investment: A contingency perspective on organization’s IT investment goals

Author

Listed:
  • Syaiful Ali

    (Accounting Department, Faculty of Economics and Business, Universitas Gadjah Mada, Yogyakarta, Indonesia)

  • Peter Green

    (School of Accountancy, Queensland University of Technology, Brisbane, QLD, Australia)

  • Alastair Robb

    (UQ Business School, The University of Queensland, Saint Lucia, QLD, Australia)

  • Adi Masli

    (University of Kansas School of Business, Lawrence, KS, USA)

Abstract

Using contingency theory, we argue that there is not a uniform approach for companies to govern information technology (IT) investments. Rather, the level of governance over IT investments is contingent upon the organization’s goals for its IT investments. We find that Australian organizations with both operation- and market-focused IT investment goals (i.e. dual-focused IT goals) demonstrate higher IT investment governance (ITIG) levels than those with less focused IT goals. We also document that dual-IT-focused firms that do not implement high levels of ITIG underperform. Our study informs business executives, boards of directors, and other practitioners interested in governance implementations over IT investments. JEL Classification: M1

Suggested Citation

  • Syaiful Ali & Peter Green & Alastair Robb & Adi Masli, 2022. "Governing information technology (IT) investment: A contingency perspective on organization’s IT investment goals," Australian Journal of Management, Australian School of Business, vol. 47(1), pages 3-23, February.
    • Handle: RePEc:sae:ausman:v:47:y:2022:i:1:p:3-23
    DOI: 10.1177/03128962211009578
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    References listed on IDEAS

    as
    1. Rajiv Kohli & Sarv Devaraj, 2003. "Measuring Information Technology Payoff: A Meta-Analysis of Structural Variables in Firm-Level Empirical Research," Information Systems Research, INFORMS, vol. 14(2), pages 127-145, June.
    2. Ali, Syaiful & Green, Peter & Robb, Alastair, 2015. "Information technology investment governance: What is it and does it matter?," International Journal of Accounting Information Systems, Elsevier, vol. 18(C), pages 1-25.
    3. Otley, David T., 1980. "The contingency theory of management accounting: Achievement and prognosis," Accounting, Organizations and Society, Elsevier, vol. 5(4), pages 413-428, October.
    4. Amrit Tiwana & Stephen K. Kim, 2015. "Discriminating IT Governance," Information Systems Research, INFORMS, vol. 26(4), pages 656-674, December.
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    Cited by:

    1. Habib Saragih, Arfah & Ali, Syaiful & Suwardi, Eko & Utomo, Hargo, 2024. "Finding the missing pieces to an optimal corporate tax savings: Information technology governance and internal information quality," International Journal of Accounting Information Systems, Elsevier, vol. 52(C).
    2. Silvia Macchia, 2022. "Unbundling the information needs of new-generation agricultural companies," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2 Suppl.), pages 117-141.

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    More about this item

    Keywords

    ANOVA; Australia; contingency theory; discriminant analysis; IT investment goals; IT investment governance; IT strategic choice;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration

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