EXPLORING THE IMPACT OF IT GOVERNANCE MECHANISMS ON IT AGILITY CAPABILITIES AND CONSEQUENCES OF CENTRALIZATION OF IT GOVERNANCE

Date

2024-5-22

Author

Sarı, Burçin

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As information technology (IT) budgets continue to rise and IT’s centrality in businesses grows, effective IT governance (ITG) has become crucial for organizations aiming to swiftly respond to environmental shifts and seize emerging opportunities. This study investigated the relationship between ITG mechanisms (ITGMs), particularly relational aspects, and organizational agility. Employing a combined approach, first, the literature on ITG was reviewed, emphasizing relational mechanisms, processes, and structures. Subsequently, a focus group study was performed with 7 professionals who have 20+ years’ experience in IT to delve into how ITG influences IT agility (ITA) in the context of market dynamics. Building on these insights, a survey was conducted to explore the impact of ITG on ITA further by collecting data from 225 companies that operate in Türkiye and the USA. The findings showed the significance of relational ITGMs in enhancing ITA, highlighting its pivotal role in responding to business environmental changes. Moreover, as organizations expand, centralizing ITG emerges as a strategy to enhance the effectiveness and efficiency of business processes. However, the efficacy of this approach remains uncertain. This was addressed by conducting semi-structured interviews with 11 senior experts in a large technology organization. The analysis suggested that rigid adherence to complete centralization or decentralization proves suboptimal. Instead, a hybrid approach, which is combining high-level centralization with tailored options for business units, emerged as a more acceptable solution.

Subject Keywords

IT Governance Mechanisms, IT Agility, Centralization of IT Governance

URI

https://hdl.handle.net/11511/110119

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Graduate School of Informatics, Thesis