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Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

The Role of IT Governance and Managing IT Investment on Firm Performance

The Role of IT Governance and Managing IT Investment on Firm Performance
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Author(s): Aboobucker Ilmudeen (Department of Management and Information Technology, Faculty of Management and Commerce, South Eastern University of Sri Lanka, Sri Lanka)
Copyright: 2021
Pages: 17
Source title: Corporate Governance and Its Implications on Accounting and Finance
Source Author(s)/Editor(s): Ahmad Alqatan (University of Portsmouth, UK), Khaled Hussainey (University of Portsmouth, UK) and Hichem Khlif (University of Sfax, Tunisia)
DOI: 10.4018/978-1-7998-4852-3.ch005

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Abstract

Although the multifaceted effects of managing or governing IT have been taken into consideration in both practice and theoretical debate, the mechanism through which these bring firm performance is yet unclear and limited. Drawing on the resource-based theory and the process theory, this chapter aims to systematically review the antecedents of business-IT alignment on the firm performance context. The findings of this study show that the business-IT alignment is derived from IT governance practices and managing IT investment to achieve firm performance. This study proposes that the firm performance cannot be attained by merely investing in IT; instead, firms should focus on effective management of IT practices and strategically align their business and IT strategies.

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