IT Governance and IT Investment Performance: An Empirical Analysis

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The authors analyze the influence of IT governance on IT investment performance using a sample dataset from Fortune 1000 firms. A key challenge in the paper is that the appropriate IT governance mode varies across firms and across business units. They address the challenge by developing an empirical model based on earlier studies on multiple contingency factors of IT governance. They use the model to predict the appropriate IT governance mode for each business unit and use the difference between the predicted and observed IT governance mode to derive a measure of a firm's IT governance misalignment.

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