Paper Type
Complete
Paper Number
1905
Description
Accelerating digital transformation is imperative for incumbent organizations facing technological disruptions, fierce competition, and shifting customer behavior. However, governance challenges in digital transformation have hindered success in many cases. Building on prior studies, there is still a need to identify and measure the influence of key ambidextrous (agile-adaptive and traditional) IT governance mechanisms on digital transformation and organizational performance. A survey was conducted with 389 respondents in the Indonesian banking and insurance industry, and the data was analyzed using SEM-PLS. The study has revealed that boards and executives, strategy and architecture, data and information, and internal and external collaborations, strongly impact digital transformation, while development and operations, risk and audit, and talent and culture, are showing a moderate influence on digital transformation. Whereas digital transformation strongly influences organizational performance. Moreover, this study provides practical insights to guide organizational leaders in making informed resource decisions by using the 34 validated indicators.
Recommended Citation
Mulyana, Rahmat; Rusu, Lazar; and Perjons, Erik, "Key Ambidextrous IT Governance Mechanisms Influence on Digital Transformation and Organizational Performance in Indonesian Banking and Insurance" (2024). PACIS 2024 Proceedings. 7.
https://aisel.aisnet.org/pacis2024/track15_govce/track15_govce/7
Key Ambidextrous IT Governance Mechanisms Influence on Digital Transformation and Organizational Performance in Indonesian Banking and Insurance
Accelerating digital transformation is imperative for incumbent organizations facing technological disruptions, fierce competition, and shifting customer behavior. However, governance challenges in digital transformation have hindered success in many cases. Building on prior studies, there is still a need to identify and measure the influence of key ambidextrous (agile-adaptive and traditional) IT governance mechanisms on digital transformation and organizational performance. A survey was conducted with 389 respondents in the Indonesian banking and insurance industry, and the data was analyzed using SEM-PLS. The study has revealed that boards and executives, strategy and architecture, data and information, and internal and external collaborations, strongly impact digital transformation, while development and operations, risk and audit, and talent and culture, are showing a moderate influence on digital transformation. Whereas digital transformation strongly influences organizational performance. Moreover, this study provides practical insights to guide organizational leaders in making informed resource decisions by using the 34 validated indicators.
When commenting on articles, please be friendly, welcoming, respectful and abide by the AIS eLibrary Discussion Thread Code of Conduct posted here.
Comments
Governance