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How does information technology affect corporate governance?

That information technology (IT) enhances the ability of enterprises to survive in the highly competitive global marketplace of the 21st century has become more and more evident. The effective use of information technology, how- ever, relies heavily on good IT governance. When IT and corporate governance go awry, the results can be devastating.

What is IT governance?

In the literature, IT governance is said to be concerned with IT project selection and prioritization issues and how the authority for resources and the responsibility for IT are shared between business partners, IT management, and service providers (Weill 2004; Weill and Ross 2004, 2005).

What mechanisms contribute to effective IT governance?

Recently, researchers have started to identify key governance mechanisms contributing to effective IT governance such as structural mechanisms (Ali and Green 2012; Bowen et al. 2007; Huang et al. 2010; Karimi et al. 2000; Prasad et al. 2012) and relational mechanisms (e.g., Ali and Green 2012; Bradley et al. 2012).

What is the relationship between IT governance and strategic alignment?

The relationship between IT governance and strategic align- ment was not established until De Haes and Van Grember- gen’s (2009) exploratory study of IT governance mechanisms for a better alignment between business and IT.

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