PACIS 2021 Proceedings

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The complexity of the cloud computing platform poses significant IT governance challenges for the firms. We argue that appropriate IT governance configurations are necessary to realize cloud computing business value. Our exploratory study develops the idea that the firms that have followed and automated IT governance mechanisms create higher cloud computing business value. However, the IT governance mechanisms' deficiencies can be counterbalanced by assigning an appropriate IT governance archetype. Remarkably, the idea indicates the higher involvement of IT people at the division level to provide input and higher accountability of business people at the corporate level in the decision-making process are associated with higher cloud computing business value. Latent profiling analysis of data from 829 firms supports our middle-range theory. In addition to contributing to information systems literature through our middle-range theory, the paper contributes to practice by providing a decision-making guideline to help firms succeed in cloud computing investment.



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