How Does Information Technology Governance Impact Organizational Performance: A MetaSEM Study

The literature establishes a positive association between IT governance and business performance. Nevertheless, we still do not completely understand how IT governance impacts firms. Informed by the literature, we hypothesize that IT strategic alignment and IT-enabled dynamic capabilities are two mechanisms that mediate the impact of IT governance on performance. We use a meta-analytic structural equation modeling (MetaSEM) method to create an integrative view of the existing fragmented literature. Our findings provide empirical support for our hypotheses. Our work contributes to the technology-mediated business value creation by providing a refined perspective on IT governance. Besides, our work yields a high-level understanding of why IT initiatives may fail and how to use IT governance to improve the performance of IT investments.