A survey on Mechanisms Influencing Effective Information Technology (IT) Governance in Iranian Banking Industry

Authors
ameneh khadivar 1
monireh naderi 2
ameneh khadivar 1
1 Assistant professor, Faculty of Social Science and Economics, Alzahra University, Tehran, Iran
2 Master of IT Management, Faculty of Social Science and Economics , Alzahra University, Tehran, Iran
Abstract
Effective IT governance guarantees alignment of IT with business in order to maximize benefits, achieving organizational goals and optimal use of IT resources. Therefore in industries such as banking industry due to the dependency of their activities on IT, appropriate IT governance is no longer a “nice to have”, it is a “must have”. To achieve effective IT governance, an organization needs to employ well-designed, well-understood, and transparent governance mechanisms. A complete list of 30 IT governance mechanisms categorized in 3 groups: decision making structures, alignment processes and relational mechanisms were synthesized through the literature review and using the Qualitative Meta-Synthesis Methodology. In the next step, a group of domain experts were requested to modify the list to the specific characteristics of Iranian banking industry and as a final outcome, a list of 26 mechanisms for effective IT governance in Iranian banking industry was obtained. Then, designed and validated questionnaire of field studies was distributed among IT managers of 25 banks. The collected data were analyzed via statistical tests. Results indicated 12 mechanisms are strongly deployed among which the existence of an IT strategy committee, IT project steering committee, IT project tracking (time and budget control) and Motivation and incentive to follow the principles of IT governance have positive impact on effective IT governance in Iranian banking industry.
Keywords
IT Governance
IT Governance Mechanisms
Banking Industry
 
 
[1]     Weill P., Ross, J.; “IT governance: How top performers manage IT decision rights for superior results”; Harvard Business School Press, Boston, 2004.
[2]     Lee Ch., Lee J., Park J., Jeong K.; “A study of the causal relationship between IT governance inhibitors and its success in Korea enterprises”; Proceedings of the 41st Hawaii International Conferenceon System Sciences, IEEE Xplore, 2008.
[3]     Ali S., Green P.; “Effective information technology (IT) governance mechanisms: An IT outsourcing perspective”; Springer Science, Inf Syst Front, Business Media, LLC, 2009.
[4]     Flores W., Gevriye M.; “Surveying experts on IT governance factors and their impact on underlying goals”; 8th International Conference on Enterprise Systems, Accounting and Logistics, Thassos Island, Greece, 2011.
[5]     Heera D., Chang, V.; “Practices and principles of IT governance in Australian legal aid organizations”; 19th Australasian Conference on Information Systems, Christchurc, 2008.
[6]     Simonsson M., Johnson P.; “Defining IT governance”; A Consolidation of Literature, Department of Industrial Information and Control Systems Royal Institute of Technology (KTH), Stockholm, Sweden, 2006.
[7]     Grembergen W., De Haes S., Guldentops E.; “Structures, processes and relational mechanisms for IT governance”; In Grembergen W.; (Ed.), Strategies for Information Technology Governance, Hershey, Idea Group Publishing, 2004.
[8]     Mendes F.F.; “A method for diagnosing information technology governance proceses”; 46th Hawaii International Conference on System Sciences, IEEE Xplore, 2013.
[9]     De Haes S., Grembergen W.; “IT Governance and its Mechanisms”; Information Systems Control Journal, Vol. 1, 2004.
[10]  De Haes S., Grembergen W.; “An exploratory study into IT governance implementations and its impact on business/IT alignment”; Taylor & Francis Group, LLC. Information Systems Management, 2009.
[11]  Nfuka E., Rusu L.; “Critical Success Factors for Effective IT Governance in the Public Sector Organisations in a Developing Country: The Case of Tanzania”; 18th European Conference on Information Systems, ScholarOne Manuscript central, 2010.
[12]  Lunardi G., Becker J., Macada A., Dolci P.; “The impact of adopting IT governance on financial performance: An empirical analysis among Brazilian firms”; International Journal of Accounting Information Systems, Elsevier Inc, 2013.
[13]  Shivashankarappa A. N., Dharmalingam R., Smalov L., Anbazhagan N.; “Implementing it governance using COBIT: A case study focusing on critical success factors”; World Congress on Internet Security (World CIS-2012) IEEE Xplore, 2012.
[14]  Noblit  W.G., Hare R.D.; “Meta-ethnography: Synthesizing qualitative studies”; New Delhi, CA: Sage, 1988.
[15]  Sandelowski M., Barroso J.; “Toward a metasynthesis of qualitative findings on motherhood in HIV-positive women”; Research in Nursing & Health,Vol. 2, no. 2, 2003.
[16]  Chenail R. J., Weiss A. D.; “Utilizing qualitative meta synthesis to conduct systematic reviews of primary healthcare research”; 21st Annual primary Care research Methods and Statistics Conference, San Antonio, 2007.
[17] نادری م.، خدیور آ.، مهدوی ع.، سلطانی دلگشا م.؛ «شناسایی و دسته‌بندی مکانیزم‌های مؤثر بر حاکمیت اثربخش فناوری اطلاعات در صنعت بانکداری ایران»؛ دومین همایش بانکداری الکترونیک و نظام‌های پرداخت؛ پژوهشکده پولی و بانکی بانک مرکزی، 1392.
[18]  Bowen P.L., Cheung M.Y.D., Rohde H.F.; “Enhancing IT governance practices: A model and case study of an organization's efforts”; International Journal of Accounting Information Systems, 191-221, 2007.
[19]  Simonsson M., Johnson P., Ekstedt M.; “The effect of IT governance maturity on IT governance performance”; Information Systems Management, Vol. 27, No. 1, 2010.
[20]  Ali S., Green P.; “Effective IT governance mechanisms in public sectors: An Australian case”; International Journal of Global Information Management (JGIM), Vol. 15, No. 4, 2007.
[21]       ITGI; “IT governance global status report 2003”; The IT Governance Institute, Available at:Http://www.itgi.org/Template_ITGI.cfm?Section=ITGIandCONTENTID=14539 and TEMPLATE=/Content Managemen/Content Displ.
[22]  De Haes S., Grembergen W.; Strategies and models for IT governance in implementing information technology governance: models, practices and cases; Hershey, 2008.
[23]  Huang R., Zmud R., Price R. L.; “Influencing the effectiveness of IT governance practices through steering committees and communication policies”; European Journal of Information Systems, Vol. 19, No. 3, 288-302, 2010.
[24]  Weill P.; “How top performers govern IT”; Massachusetts Institute of Technology, Vol. 3, No. 3A, 2003.
[25]  Inter-Agency Policy and Projects Unit; “Project management fact sheet: Steering committee ‘nuts and bolts’”; Department of Premier and Cabinet, Tasmania, 2008. Roberts M. H.; “I.T. project management training course, project management book”; Available at: http://www.hraconsulting-ltd.co.uk/, 2012.
Organizational Resources Management Researches
Volume 4, Issue 1
June 2014
Pages 53-79