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
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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.
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Keywords
Determinants and Outcome of Information Technology Governance , Effectiveness to Organizational Performance
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