Determinants and Outcome of Information Technology Governance (ITG) Effectiveness to Organizational Performance: An Empirical Study of Public Listed Companies (PLC) in Malaysia
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Date
2014-10
Authors
Ching, Kai Hsien
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Malaysia has realised the importance of Information Technology Governance
(ITG) in organizations which is also strongly driven by the implementation of corporate
governance. As information technology advances from time to time, the ability of
organizations to combine information technology resources to respond to the complexity
business environment in order to improve organizational performance have also
increased. Effective ITG has become very crucial and vital for corporate companies in
conducting their business. Most past researches pertaining to ITG focused on the
technological and operational respects of the technology. There are limited studies that
emphasize other factors in a holistic view and stress on the outcome that ITG
effectiveness can bring in terms of financial and non-financial aspects of firm
performance. Therefore, this study is aimed to identify the determinants and outcome of
ITG effectiveness for Public Listed Companies (PLCs) in Malaysia and the outcome of
ITG effectiveness to company performance. As such, data were collected via
questionnaires from Public Listed Companies (PLCs) in Malaysia. Subsequently, Partial
Least Square (PLS) of Structured Equation Modeling (SEM) was used to examine and
analyze the data based on the hypotheses derived from the research framework. Findings
from this research help the PLCs to integrate the research framework in their current
business organization and to support the improvement of ITG effectiveness. The final
results indicate that technology capability, top management support and environmental
volatility are significant determinants affecting ITG effectiveness for Public Listed
Companies (PLCs) in Malaysia. Meanwhile, the effectiveness of ITG has significant
impact to organizational performance.
Description
Keywords
Determinants and Outcome of Information Technology Governance , Effectiveness to Organizational Performance