Analysing the Impact of Enterprise Governance of IT Practices on Business Performance

2010 ◽  
Vol 1 (1) ◽  
pp. 14-38 ◽  
Author(s):  
Steven De Haes ◽  
Wim Van Grembergen
Keyword(s):  
Business Performance ◽  
Academic Research ◽  
Business Value ◽  
It Alignment ◽  
Business Goals ◽  
Field Practice ◽  
Enterprise Governance ◽  
The Impact ◽  
The Relationship ◽  
It Practices

Enterprise governance of IT (EGIT) is about the definition and implementation of processes, structures and relational mechanisms that enable both business and IT people to execute their responsibilities in support of business/IT alignment and the creation of business value from IT-enabled business investments. In this field, practice-oriented guidance like COBIT and Val IT are often promoted as broad frameworks to implement enterprise governance of IT, but very little academic research is available that empirically supports the assumption that implementing EGIT practices, as defined by COBIT and Val IT, improve business performance. This article explores the relationship between Enterprise Governance of IT practices and business performance, and finds little support to identify a direct link between EGIT practices and business performance. However, clear empirical evidence is revealed demonstrating that the implementation of EGIT practices impacts the achievement of specific IT goals, which in turn impacts the achievement of specific business goals. A three-layered cascade is proposed to demonstrate the impact of EGIT practices, through IT goals, on business performance.

Analysing the Impact of Enterprise Governance of IT Practices on Business Performance

2012 ◽  
pp. 14-36 ◽  
Author(s):  
Steven De Haes ◽  
Wim Van Grembergen
Keyword(s):  
Business Performance ◽  
Academic Research ◽  
Direct Link ◽  
It Alignment ◽  
Business Goals ◽  
Field Practice ◽  
Enterprise Governance ◽  
The Impact ◽  
The Relationship ◽  
It Practices

Enterprise governance of IT (EGIT) is about the definition and implementation of processes, structures and relational mechanisms that enable both business and IT people to execute their responsibilities in support of business/IT alignment and the creation of business value from IT-enabled business investments. In this field, practice-oriented guidance like COBIT and Val IT are often promoted as broad frameworks to implement enterprise governance of IT, but very little academic research is available that empirically supports the assumption that implementing EGIT practices, as defined by COBIT and Val IT, improve business performance. This article explores the relationship between Enterprise Governance of IT practices and business performance, and finds little support to identify a direct link between EGIT practices and business performance. However, clear empirical evidence is revealed demonstrating that the implementation of EGIT practices impacts the achievement of specific IT goals, which in turn impacts the achievement of specific business goals. A three-layered cascade is proposed to demonstrate the impact of EGIT practices, through IT goals, on business performance.

The Impact of Cloud Computing on Organizational Performance

2021 ◽  
Vol 11 (4) ◽  
pp. 136-151
Author(s):  
Thura Al-Azzawi ◽  
Tugberk Kaya
Keyword(s):  
Cloud Computing ◽  
Human Resources ◽  
Organizational Performance ◽  
Business Performance ◽  
Direct Relation ◽  
Organizational Agility ◽  
Cloud Computing Adoption ◽  
The Cost ◽  
The Impact ◽  
The Relationship

The use of cloud computing has remarkable advantages in business performance. It is related especially in the portion of the organizational environment, such as organizational culture and organizational agility. Organizational agility provides an easier process to search and retrieve knowledge and allow the businesses to utilize and apply this knowledge to get high-quality services. Agility and culture factors can help organizations to enhance their cloud computing adoption. The achievement of any organization is dependent upon human resources. With human resources, the organization can develop its employees by sharing knowledge, skill, and experience of personnel. Expert cloud has a significant impact on and direct relation with human resources as it facilitates the communication among human resources better, more efficiently, and reduces the cost of the service. In this paper, the authors discuss the relationship between expert cloud and human resources to enhance the organizational performance through the assistance of organizational agility and culture.

R&D volatility and market value: the role of executive overconfidence

2019 ◽  
Vol 14 (2) ◽  
pp. 411-431
Author(s):  
Benlu Hai ◽  
Qingzhu Gao ◽  
Ximing Yin ◽  
Jin Chen
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Market Value ◽  
Data Set ◽  
Content Type ◽  
Dynamic Perspective ◽  
Innovation Strategies ◽  
The Impact ◽  
The Relationship

Purpose Significant increase or decrease in research and development (R&D) expenditure may have an immense impact on market value. Based on the punctuated equilibrium theory, this paper aims to empirically analyze the impact of R&D volatilities on market value and the moderating effect of executive overconfidence. Design/methodology/approach The study uses the panel data set that covers 902 Shanghai and Shenzhen A-share manufacturing listed firms and multiple regression method to test the theoretical hypotheses. Findings The results show that both positive and negative R&D volatilities have a robust and significant positive impact on the market value. Further analysis shows that the executive overconfidence positively moderates the relationship between R&D volatilities and market value. Research limitations/implications In a rapidly changing and highly competitive environment, firms should recognize that the balance of innovation strategies will help to bring higher market value. Furthermore, firms could improve corporate governance to make the best of managerial characteristics, such as overconfidence, on the innovation decision-making process. Originality/value By pushing the static perspective to a dynamic perspective and empirically documenting the role of executive overconfidence, this study contributes to the literature on the relationship between R&D expenditure and market value, generating theoretical and practical insights for firms to improve innovation governance and innovation strategies to achieve better business performance.

Key audit matters: insight from audit experts

2019 ◽  
Vol 27 (3) ◽  
pp. 472-494 ◽  
Author(s):  
Milton Segal
Keyword(s):  
Design Methodology ◽  
Academic Research ◽  
Small Sample ◽  
Content Type ◽  
Interpretive Approach ◽  
Management Policies ◽  
Audit Reports ◽  
The Impact ◽  
The Relationship ◽  
Complete Account

Purpose Key audit matters (KAM) and their impact on the auditor is a relatively understudied area. The purpose of this study is to analyse whether auditors perceive that the recent requirement for auditors of listed companies to report KAMs has enhanced the transparency of audit reports or not, what additional risks they now face, how the risk is being managed and its impact on the relationship with their clients. Design/methodology/approach The paper uses an interpretive approach for detailed interviews with some of South Africa’s leading audit experts to highlight their perspective of the impact of KAM on audit reporting and the audit environment. Findings The experts have various perceptions of what makes a matter “key”. These vary from materiality, to subjectivity and difficulty, as well as incorporating a time-based consideration. Concerns identified include a significant increase in cost and an increase in potential liability, triggering the need for thorough internal risk management policies. The audit experts conclude that KAM has ultimately failed to achieve its goal of greater transparency, with clients virtually ignoring KAM reports. Research limitations/implications The research relies on a relatively small sample of subject experts and may not provide a complete account of the view of all audit professionals and KAM reports issued. It analyses the impact of KAM from the preparers’ perspective. Originality/value This study contributes to the research conducted in this topical area. Although there has been research on KAM focusing on pre-implementation consequences, there is virtually no formal academic research on the impact KAM has had on audit partners and firms in South Africa post implementation. It may also serve as a basis for the IAASB to consider going forward.

Impact of IT practices and business value of IT measurement

2019 ◽  
Vol 69 (4) ◽  
pp. 774-793
Author(s):  
Sunil Pathak ◽  
Venkataraghavan Krishnaswamy ◽  
Mayank Sharma
Keyword(s):  
Business Value ◽  
Business Value Of It ◽  
Firm Level ◽  
Content Type ◽  
Study Approach ◽  
It Systems ◽  
Firm Data ◽  
Value Of It ◽  
The Relationship ◽  
It Practices

Purpose The purpose of this paper is to measure the business value of IT (BVIT) and illustrate the relationship between IT practices and BVIT. Design/methodology/approach The paper uses a case study approach to collect the subject firm data over a period of one year. The data are about various IT systems used in the firm and their associated capital and operational cost components. The derived data are then compared with industry benchmarks. Findings The IT practices employed by the firm enable it to achieve a BVIT which is higher than the industry norm, from both strategic and operational perspectives. Research limitations/implications In this study, a year’s worth of data from a single firm is considered. The temporal frame of the research data limits the generalization of the results. To improve the generalizability, data from many years and across many firms may be used. Practical implications The paper provides insights to managers to identify the measures of BVIT. Further, managers can make necessary interventions based on IT practices to derive IT capabilities which, in turn, impact the firm’s performance. Originality/value The contribution of the work is manifold: illustration of the relationship between IT practices and BVIT; illustration of a methodology to evaluate firm-level BVIT; and an approach to collect IT expenses – both capital and operational level.

scholarly journals When does metric use matter less?

2015 ◽  
Vol 49 (11/12) ◽  
pp. 1809-1856 ◽  
Author(s):  
Ofer Mintz ◽  
Imran S. Currim
Keyword(s):  
Conceptual Framework ◽  
Business Performance ◽  
Performance Metrics ◽  
Generalized Least Squares ◽  
Marketing Mix ◽  
Seemingly Unrelated Regression ◽  
Content Type ◽  
Finance Management ◽  
The Impact ◽  
The Relationship

Purpose – This paper aims to develop a conceptual framework, in an effort toward building a contingent theory of drivers and consequences of managerial metric use in marketing mix decisions, this paper develops a conceptual framework to test whether the relationship between metric use and marketing mix performance is moderated by firm and managerial characteristics. Design/methodology/approach – Based on reviews of the marketing, finance, management and accounting literatures, and homophily, firm resource- and decision-maker-based theories and 22 managerial interviews, a conceptual model is proposed. It is tested via generalized least squares – seemingly unrelated regression estimation of 1,287 managerial decisions. Findings – Results suggest that the impact of metric use on marketing mix performance is lower in firms which are more market oriented, larger and with worse recent business performance and for marketing and higher-level managers, while organizational involvement has a lesser nuanced effect. Research limitations/implications – While much is written on the importance of metric use to improve performance, this work is a first step toward understanding which settings are more difficult than others to accomplish this. Practical implications – Results allow identification of several conditional managerial strategies to improve marketing mix performance based on metric use. Originality/value – This paper contributes to the metric literature, as prior research has generally focused on the development of metrics or the linking of marketing efforts with performance metrics, but paid little attention to understanding the relationship between managerial metric use and performance of the marketing mix decision and has not considered how the relationship is moderated by firm and managerial characteristics.

scholarly journals Stakeholder Influences and Environmental Management Practices in Fleet Operations – A Research Agenda

2015 ◽  
Vol 773-774 ◽  
pp. 1360-1364
Author(s):  
Ai Chin Thoo ◽  
Lay Jie Tan
Keyword(s):  
Environmental Management ◽  
Business Performance ◽  
Management Practices ◽  
Business Processes ◽  
Academic Research ◽  
Future Research ◽  
Socially Responsible ◽  
Environmental Management Practices ◽  
The Relationship ◽  
Fleet Operations

Relationship between stakeholder influences and environmental management practices has not yet received sufficient attention in academic research in Malaysian fleet operations. Due to the increased awareness and concern among stakeholders for environmentally friendly business processes, the two main stakeholder influences including regulatory pressures and customer pressures are considered in combination to ensure firms to behave ethically and socially responsible. Environmental management practices including effectiveness of policy, effectiveness of implementation and effectiveness of planning in environmental management are one of the effective ways of dealing with environmental risks and costs. However, there is a little empirical research on how practitioners define and incorporate stakeholder influences into overall environmental management practices, particularly in the context of fleet operations. As such, this paper proposes a model to include two stakeholder influences and three environmental management practices. It is expected that this paper will offer useful guidance for future research scholars to empirically examine the relationship between stakeholder influences and environmental management practices for sustained business performance.

scholarly journals EXAMINING ENTREPRENEURIAL ORIENTATION – PERFORMANCE RELATIONSHIP AMONG CROATIAN SERVICE SMES

2021 ◽  
Vol 30 (2) ◽  
pp. 509-526
Author(s):  
Bojan Morić Milovanović ◽  
◽  
Zoran Wittine ◽  
Zoran Bubaš
Keyword(s):  
Entrepreneurial Orientation ◽  
Business Performance ◽  
Scientific Literature ◽  
External Environment ◽  
Moderation Effect ◽  
The Impact ◽  
The Relationship ◽  
Multidimensional Concept ◽  
Small And Medium Business

The relationship between entrepreneurial orientation and business performance has been widely researched. However, in scientific literature there is still a need for further clarification when observing the before mentioned concepts, especially within the service SME context. Likewise, when observing this relationship it is necessary to look into the impact of entrepreneurial orientation on individual segments of business performance, i.e. on financial and non-financial constructs. Therefore, the aim of this paper is to explore the association of entrepreneurial orientation and small and medium business performance, while observing performance both as unidimensional and multidimensional concept. Furthermore, the paper tests whether moderation effect of external environment exists between entrepreneurial orientation and business performance among Croatian service SMEs.

scholarly journals Influence of electronic commerce on business performance: Evidence from e-commerce organisations in Harare, Zimbabwe

2017 ◽  
Vol 8 (6(J)) ◽  
pp. 146-152
Author(s):  
Christine Ivy Hurasha, ◽  
Tafara Chiremba
Keyword(s):  
Electronic Commerce ◽  
Business Performance ◽  
Positive Relationship ◽  
Service Operations ◽  
Policy Makers ◽  
Leading Role ◽  
The Government ◽  
The Impact ◽  
The Relationship ◽  
Structured Questionnaire

Abstract: The purpose of the study was to explore the impact of electronic commerce on business performance with specific focus on business organisations in Harare, Zimbabwe. This was achieved through investigating the relationship between e-commerce investment and indicators of business performance such as cost operations, service operations and profit levels. A structured questionnaire was developed and administered to 40 respondents from 10 e-commerce organisations. The study revealed that there was a positive relationship between e-commerce investment and business performance. It was revealed that an investment in e-commerce by organisations in Zimbabwe would increase profit levels, improve service operations and reduce transaction costs. The researchers recommended that organisations that have already adopted e-commerce should raise customer awareness and interest in e-commerce and promote the usage of the technology. They also recommended that policy makers such as the Government must take a leading role in the funding of education and the development of infrastructure in order to encourage more organizations and consumers to participate in e-commerce.Keywords: E-commerce, Business performance, Business organisations, Service operations, Cost operations

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