Top Management IT Governance Knowledge: A Construct Development

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Ali, Syaiful; Green, Peter; Robb, Alastair
Construct development; absorptive capacity theory; top management; IT governance; second-order confirmatory factor analysis.; Management Information Systems
article description
Top management involvement in IT governance may positively influence the establishment and implementation of effective IT governance within organisations. There are few studies, however, investigating those factors that drive top managements’ ability to absorb IT governance knowledge within organisations. This study offers a deeper understanding of factors that help positively influence top managements’ knowledge of IT governance. Using absorptive capacity as its theoretical underpinning and based on Australian empirical data, this study shows that for top management to have good levels of absorptive capacity of IT governance knowledge, four factors are required. Within the context of IT governance, those four factors are prior relevant knowledge, communication network, communication climate, and knowledge scanning. In rank order this study shows that the level of absorptive capacity of IT governance of top management was strongly influenced by communication network. Knowledge scanning was found as the next most important factor for improving the level of absorptive capacity of IT governance knowledge. Communication climate was found to be the third most important factor. Lastly, ‘Prior relevant knowledge’ was also important for enhancing the level of absorptive capacity of IT governance among top management. Organisations that want their top management to be positively involved in IT governance can use these empirically validated factors to help contribute to top management involvement in IT governance.