IT Strategy and Management


This paper presents a theory-based framework that proposes and explains the positive impact of IT governance on the business performance of the firm. The study takes the resource based perspective and integrates the economic theory of complementarities and the concept of relatedness. The proposed increase of business performance is grounded in the generation of sustainable competitive advantage. The framework is developed using eleven exploratory case studies with senior IT executives of major multinational corporations. The results suggest that IT governance is positively related to business performance through the mediators IT relatedness and business process relatedness. It is argued that the latter two are complementary in the sense that they do not only increase business performance independently, but additionally if pursued concurrently.