Abstract

Today it is not possible for the companies to compete without having IT as a strategic driver. That is why IT governance becomes crucial for managers to bring the most value from IT to the business. Additionally organizational culture is an important factor and often blamed when IT governance projects fail. However little in-depth research investigated how the organizational culture changes can improve the IT governance performance. This research is a case study of the IT department of a large company attempting to improve the IT governance while facing the digitalization challenge. In this case the IT department has an organizational culture change journey seeking to improve the IT governance performance. The results indicate that the initial clan culture orientation of the IT department has led to a successful IT governance performance in cost-effective use of IT. Furthermore, adhocracy is identified as preferred culture for improving IT governance for growth.

Recommended Citation

Aasi, P. & Rusu, L. (2017). Facing The Digitalization Challenge: Why Organizational Culture Matters and How It Influences IT Governance Performance. In Paspallis, N., Raspopoulos, M. Barry, M. Lang, H. Linger, & C. Schneider (Eds.), Information Systems Development: Advances in Methods, Tools and Management (ISD2017 Proceedings). Larnaca, Cyprus: University of Central Lancashire Cyprus. ISBN: 978-9963-2288-3-6. http://aisel.aisnet.org/isd2014/proceedings2017/ISDevelopment/4.

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Facing The Digitalization Challenge: Why Organizational Culture Matters and How It Influences IT Governance Performance

Today it is not possible for the companies to compete without having IT as a strategic driver. That is why IT governance becomes crucial for managers to bring the most value from IT to the business. Additionally organizational culture is an important factor and often blamed when IT governance projects fail. However little in-depth research investigated how the organizational culture changes can improve the IT governance performance. This research is a case study of the IT department of a large company attempting to improve the IT governance while facing the digitalization challenge. In this case the IT department has an organizational culture change journey seeking to improve the IT governance performance. The results indicate that the initial clan culture orientation of the IT department has led to a successful IT governance performance in cost-effective use of IT. Furthermore, adhocracy is identified as preferred culture for improving IT governance for growth.