A MODEL ON THE INFLUENCE OF INFORMATION TECHNOLOGY GOVERNANCE ON ORGANISATION
PERFORMANCE
BY
BINYAMIN ADENIYI AJAYI
A thesis submitted in fulfilment of the requirement for the degree of Doctor of Philosophy in Information Technology
Kulliyyah of Information & Communication Technology International Islamic University Malaysia
FEBRUARY 2017
ii
ABSTRACT
Information Technology Governance (ITG) is the deliberate behaviour adopted by senior management in the corporate design of Information Technology (IT) and for enterprise use to enable continuous organisation performance. Research in recent times has been reporting issues on ITG phenomenon in the organisation. However, studies on educational institutions, especially in developing nations, are scarce despite the increase in recognition of the importance of ITG. Moreover, few embed theoretical underpinnings to extend knowledge. This study, based on organisation learning and contingency theories, explores how universities achieve performance through designed ITG. It examines antecedents of ITG absorptive capacity and its influence on performance in the context of developing nations’ universities. Using a sequential mixed method research design, it carries out an exploratory and correlational study. It avails itself to documents, websites and interview sessions with executive and senior managers, in a phenomenological case study on International Islamic University Malaysia. It applies the thematic coding style to generate themes relative to analysed documents. The themes and knowledge from past studies informed the design of the questionnaire. It administers the questionnaire purposively and randomly on strata of business and IT functions senior level managers drawn from seven public and three private universities in Malaysia. Subjecting the data to Exploratory Factor Analysis (EFA), a scale of 44 items, content valid and reliable, was found to be parsimonious enough in explaining seven dimensions of the three variables of ITG model consisting of ITG mechanism, ITG absorptive capacity and organisation ITG performance. Using the Multiple Regression Analysis (MRA) techniques on these three variables reveals the mediating effect of ITG absorptive capacity. ITG absorptive capacity fully mediates, and better explains the effect of ITG mechanism on organisation ITG performance. The resultant model, as well as the multiple-item scale, can be adapted in future to study the systemic role of ITG on organisation performance. This study suggests that proper ITG behaviour results in enhanced business and IT knowledge, which in turn influences organisation’s ability to perform. The report identifies some implications of the study and future directions.
iii
ثحبلا ةصلاخ
( تامولعلما ايجولونكت ةمكوح ITG
علما كولسلا يه ) ت
في ايلعلا ةرادلإا لبق نم دم لا
تاكرش ل
ميمصت
لونكت تامولعلما ايجو (
IT ) سسؤلما مادختساو ، تا
ينكمتل رارمتسا .ةمظنلما ءادأ
و ةيرخلأا ةنولآا في يرشت
دوجو لىا تاساردلا م
اش ك ل لوح ةرهاظ تامولعلما ايجولونكت ةمكوح سسؤلما في
تا تاساردلا نكلو .
ةيهمأب فاترعلاا في ةدايزلا مغر ةحيحش ةيمانلا لودلا في ةصاخو ةيميلعتلا تاسسؤلما ىلع ةمكوح
تامولعلما ايجولونكت ت اهنم لقأ ددع ّنإف ،كلذ ىلع ةولاعو .
.ةفرعلما قاطن عيسوتل ةيرظنلا سسلأا خّسر
و ةساردلا هذه دامتعلااب
ىلع تايرظن ملعتلا
و ئراوطلا تامظنلما في
، فاشكتساب تماق فيك
تققح
لجا تثبحو .تامولعلما ايجولونكت ةمكوح ميمصت للاخ نم ءادلأا تاعما قبس ام
ةيباعيتسلاا ةردقلا نع
تامولعلما ايجولونكت ةمكولح اهيرثأتو
لع تاعمالجا في ءادلأا ى ةمدقتلما لودلا في
بولسلأا مادختسابو .
ا
،ثحبلا ميمصت في طلتخلما لسلستلم ذيفنت تم
و ةيفاشكتسا ةسارد .ةيطابترا
نم ةدافتسلاا تتم ثيح
و ،تنترنلإا ةكبشو ،قئاثولا و ،ةيذيفنتلا ةطلسلا عم راوح تاسلج
رهاوظلا ةلاح ةسارد في ،نيريدلما رابك
عمالجا في
،يعوضولما زيمترلا مادختسابو .ايزيلابم ةيلماعلا ةيملاسلإا ة تم
قئاثو ديلوت ليلحتلا
. نمو وه ام
ةقباسلا تاساردلا نم فورعم تم
.نايبتسلاا ميمصت ةرادا تمو
نايبتسلاا لكشب
يدصق و ىلع يئاوشع
لامعلأا تامولعلما ايجولونكت فئاظوو
رابك ىوتسم ىلع نيريدلما
في ةصاخ ثلاثو ةماع تاعماج عبس
.ايزيلام في عاضخإبو
لىإ تانايبلا ةيفاشكتسلاا لماوعلا ليلتح
( EFA
،) ديدتح تم 44
رصنع حيحص
،قوثومو ثيح
انهأ دجو و ةحيحش
يفكت ل داعبأ ةعبس حرش ل
ةمكوح مييقت جذونم نم ةثلاثلا تايرغتمل
ولونكت ةمكوح ةيلآ نم نوكتت تيلا ،تامولعلما ايجولونكت ةمكولح ةيباعيتسلاا ةردقلاو ،تامولعلما ايج
،تامولعلما ايجولونكت و
تامولعلما ايجولونكت ةمكوح ءادأ ةمظنلما في
فشكو . ددعتلما رادنحلاا ليلتح
( MRA ثلاثلا تايرغتلما هذه ىلع )
طسوتلا يرثأت ىدم لا في
ةردق لاا ايجولونكت ةمكولح ةيباعيتس
.تامولعلما ةردقلاو
ةيباعيتسلاا تامولعلما ايجولونكت ةمكولح
لماك لكشب طسوتلا يرثأت اله ام لضفأو ،
تامولعلما ايجولونكت ةمكوح ةيلآ يرثأت رسفي تامظنلما ءادا ىلع
. لا نا لىإ ةفاضلإاب جتانلا جذومن سايقلما
ددعتلما رود ةساردل لبقتسلما في اهفييكتو اهدامتعا متي نأ نكيم ةمكوح
أ ىلع تامولعلما ايجولونكت ءاد
ةمظنلما . جتنتستو نأ ةساردلا
قيبطت تامولعلما ايجولونكت ةمكولح بسانلما كولسلا في ينستح هنع جتني
تامولعلما ةينقتو لامعلأل ةفرعلما
، اهرودب تيلاو ىلع يرثأت اله
ةمظنلما ةردق ءادلاا ىلع
. دقو تم ضعب حاضيا
ةبتترلما راثلآا هذه ىلع
ةساردلا
ةيلبقتسلما تاهجوتلاو
.
iv
APPROVAL PAGE
This thesis of Binyamin Adeniyi Ajayi has been approved by the following:
______________________________
Husnayati Hussin Supervisor
______________________________
Abdul Rahman Ahlan Internal Examiner
______________________________
Khalil-Ur-Rahmen Khoumbati External Examiner
______________________________
Abdullah Embong External Examiner
______________________________
Radwan Jamal Yousef Elatrash Chairman
v
DECLARATION
I hereby declare that this thesis is the result of my own investigation, except where otherwise stated. I also declare that it has not been previously or concurrently submitted as whole for any other degree at IIUM or other institution.
Binyamin Adeniyi Ajayi.
Signature... Date...
vi
INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA
DECLARATION OF COPYRIGHT AND AFFIRMATION OF FAIR USE OF UNPUBLISHED RESEARCH
A MODEL ON THE INFLUENCE OF INFORMATION TECHNOLOGY GOVERNANCE ON ORGANISATION PERFORMANCE
I declare that the copyright holders of this thesis are jointly owned by the student and IIUM
Copyright © 2017 Binyamin Adeniyi Ajayi. All rights reserved.
No part of this unpublished research may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the copyright holder except as provided below:
1. Any material contained in or derived from this unpublished research may be used by others in their writing with due acknowledgement.
2. IIUM or its library will have the right to make and transmit copies (print or electronic) for institutional and academic purposes.
3. The IIUM library will have the right to make, store in a retrieved system and supply copies of this unpublished research if requested by other universities and research libraries.
By signing this form, I acknowledged that I have read and understand the IIUM Intellectual Property Right and Commercialization Policy.
Affirmed by Binyamin Adeniyi Ajayi.
……… ………
Signature Date
vii
Dedicated to Allah: Who with His Grace perfects the dispositions of the Righteous!!!
viii
ACKNOWLEDGMENTS
First, I am grateful to Allah for sparing my life till this great opportunity, all His guidance and blessings throughout the study. Without Him, it would be impossible to undertake and accomplish. Then appreciation goes to my beloved family members.
Importantly are: Daddy, Mr Bisiriyu Akande Ajayi, Aunty, Mrs Kudirat Abeni Awoleye, cherished sister, Mrs Rizqah Adenike Ajayi-Buraimoh, and beloved wife, Mrs Rahmotallahi Omowunmi Lawal-Ajayi, the pillar and support endowed by Allah, as well as the children who have been the backbone can never be forgotten.
I would like to acknowledge with the deepest sense of appreciation, and profound gratitude to, Prof Dr Husnayati Hussin for supervising this work. Thanks, Ma for the guidance and expertise to take me through the dictates of a successful research.
It goes beyond just this thesis: it is a foundation laid for future endeavours and source of attaining His Ridwan both here and hereafter in shaa Allah. I appreciate the effort of Assoc Prof Dr Ismail Sheikh Ahmad in putting me through the qualitative design of conducting and making sense of interview sessions. As well as sincere thanks to Assoc Prof Dr Abdul Rahman Ahlan for his: brotherly and intellectual support throughout the postgraduate sojourn. His is a rare example of sharing and support as a Research Assistant. To this end, appreciation is due to the Centre of Islamisation for the opportunity provided for learning more while working on the Islamisation index. I am indeed indebted to Allah, for providing those varied opportunities.
The journey is incomplete without acknowledging Allah’s favour from varied quarters. The Centre for Postgraduate Studies for a two-semester honour of the award of President Scholarship during this study. As well as financial support from Thani Abdullah Foundation Malaysia, Messers Abdul Wasi’u Ademola Orenaike, Bakhtiyar Alli Hussein, Idris Abolaji Adegbindin and Dr Mushafau Adewale Akinsanya for financial and moral support. Friends in deed, Dr Mukaila Alade Rahman, Messers Muhyideen Babatunde Tahir, Mosud Taiwo Ajala and Majeed Olaide Oladokun. Sisters on campus, especially, my sister in need and in deed, Dr Rashidah Funke Olanrewaju, and others like Sisters Shakirah Oluwatosin Raji, Noor Afzan Binti Salleh, Dhkroh Tanwa Olaosebikan for their moral support. My brother, Mr Abdul Lateef Abiodun Sunmola for his unreserved moral and spiritual support. Dr Andani Mohammed Adam for proofreading this thesis. To my Ustadh, Mr Haroon Ayinla Thanni, Big Uncle, Mr Kachef Olabode Oyedele, Mr Hafees Akanni Matemilola, Mr Saheed Olusola Balogun and my sister, Mrs Bilikisu Funmilayo Lisoyi, for their insistence and support that culminated into the commencement of the postgraduate endeavour outside the shores of Nigeria. To all friends, colleagues and well-wishers, too numerous to mention here, you are all appreciated. Your unflinching support through this PhD sojourn remain engrave on the mind. May Allah endow you and your progeny with His Ridwan: that we are amongst the favoured. Jazaakumullah Khayran Katheeran to you all. I conclude by appreciating Allah, the Exalted, for His countless mercies adopting His words:
Da’waahum feeha Subhanaka Allahumma, watahiyyatuhum feehaa Salaamun, aa aakhiru da’waahum ani lhamdu lillahi Rabbi l’aalameen.
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TABLE OF CONTENTS
Abstract ... ii
Abstract in Arabic ... iii
Approval Page ... iii
Declaration ... v
Copyright Page ... vi
Acknowledgments ... viii
List of Tables ... xvi
List of Figures ... xix
List of Abbreviation ... xxi
Notational Convention ... xxii
CHAPTER ONE: INTRODUCTION ... 1
1.1 Research Background... 1
1.2 Statement of the Problem ... 3
1.3 Research Questions ... 5
1.3.1 Qualitative Research Questions ... 5
1.3.2 Quantitative Research Questions ... 5
1.4 Research Objectives ... 6
1.5 Research Aims ... 6
1.6 Research Framework ... 7
1.7 Research Methodology... 9
1.7.1 Exploratory Study ... 9
1.7.2 Correlational Study ... 10
1.8 Scope of Study ... 11
1.9 Significance of Study ... 12
1.10 Organisation of Thesis ... 13
CHAPTER TWO: LITERATURE REVIEW ... 15
2.1 Introduction ... 15
2.2 ITG Definition ... 15
2.2.1 Operational Definition of ITG ... 16
2.3 ITG Evolution and Concept ... 18
2.3.1 Weill et al. ... 19
2.3.2 Peterson et al. ... 19
2.3.3 Van Grembergen et al. ... 20
2.3.4 Evolution: ITG versus Corporate Governance ... 24
2.3.5 IT Management Vs Governance ... 26
2.3.6 ITG Frameworks ... 27
2.3.6.1 Control Objectives for Information Related Technologies CobiT ... 29
2.4 Past Research on ITG ... 30
2.4.1 Past Research on ITG in Higher Education Institutions ... 31
2.5 ITG and Universities in Malaysia ... 36
2.5.1 Malaysia Educational Sector ... 36
2.5.2 IT and Malaysia HEIs ... 40
x
2.5.3 ITG Studies in Malaysia ... 41
2.6 ITG and Organisation’s Performance ... 49
2.6.1 Business and IT Knowledge ... 50
2.6.2 Influence of Effective ITG ... 52
2.6.3 Benefits of Implementing ITG in HEIs ... 52
2.6.3.1 Competitive Advantage ... 54
2.6.3.2 Education and Learning ... 55
2.6.3.3 ITG and University Administration ... 56
2.7 Gaps in Research ... 57
2.7.1 Fewer Studies Entrenched in Theory ... 58
2.7.2 Fewer Studies on ITG in Developing Economies ... 60
2.7.3 Fewer Studies on ITG in Public Sector ... 60
2.7.4 Fewer Comprehensive Studies on Influnce of ITG in Universities . 61 2.8 Summary ... 61
CHAPTER THREE: THEORETICAL FRAMEWORK ... 63
3.1 Introduction ... 63
3.2 Organisational Learning (OL) Theory ... 63
3.2.1 Levitt and March's Expositions on OL ... 64
3.2.2 Shrivastava’s Expositions on OL ... 65
3.3 Absorptive Capacity as a Concept of OL ... 67
3.3.1 Cohen and Levinthal’s Work: Evolution of Absorptive Capacity .. 69
3.3.2 Zahra and George Re-Conceptualisation of Absorptive Capacity .. 70
3.3.3 Todorova and Durisin Re-Conceptualisation of Absorptive Capacity ... 72
3.3.4 Lane et al. on Rejuvenation of Absorptive Capacity ... 75
3.3.5 Absorptive Capacity in Information Systems (IS) Research ... 76
3.3.4 Defining ITG Absorptive Capacity ... 77
3.4 Contingency Theory ... 79
3.4.1 Applying Contingency Theory on Absorptive Capacity ... 81
3.5 Evolving an Organisation’s ITG Theory ... 83
3.5.1 Structural Capability ... 84
3.5.2 Process Capability ... 84
3.5.3 Relational Capability ... 84
3.6 A Model of ITG ... 85
3.6.1 Entrenching the ITG Model in Theory ... 90
3.6.1.1 ITG Mechanism Predicts ITG Absorptive Capacity ... 90
3.6.1.2 ITG Absorptive Capacity Predicts ITG Organisation Performance ... 91
3.6.1.3 ITG Mechanism Predicts ITG Organisation Performance . 92 3.6.1.4 Mediating Effect of ITG Absorptive Capacity in ITG Model ... 93
3.7 Chapter Summary... 93
CHAPTER FOUR: RESEARCH DESIGN AND METHODOLOGY ... 94
4.1 Introduction ... 94
4.2 Research Paradigms in the Light of Current Study ... 94
4.2.1 Research Design ... 95
4.2.2 Research Philosophy ... 95
xi
4.2.3 Strategy of Inquiry ... 96
4.2.4 Research Method ... 97
4.2.5 Quantitative Approach ... 97
4.2.6 Qualitative Approach ... 98
4.2.7 Case Study Research ... 100
4.2.8 Mixed Method Research Approach ... 103
4.2.9 Typology for Mixed Method Research Design MMRD ... 104
4.2.9.1 Mixing, Timing and Emphasis Dimensions ... 105
4.2.10 Choice of Mixed Method ... 109
4.3 Method Design Adopted by ITG Research ... 109
4.4 Chosen Research Design ... 112
4.4.1 Phase 1: Preliminary Study ... 114
4.4.2 Phase 2: Exploratory Study ... 116
4.4.3 Phase 3:Correlational Study ... 117
4.5 Chapter Summary... 118
CHAPTER FIVE: EXPLORATORY STUDY ... 119
5.1 Introduction ... 119
5.2 Purpose of the Phenomenological Case Study ... 119
5.3 Case Organisation ... 120
5.3.1 Choice of IIUM ... 121
5.3.2 Overview of IIUM ... 122
5.3.3 Information Technology Division (ITD) ... 124
5.3.3.1 ITD IT Structures ... 125
5.3.3.2 ITD Services ... 126
5.4 Document Analysis ... 127
5.4.1 IIUM Strategic Plan 2013-2020 ... 127
5.4.2 ICT Strategic Plan 2013-2015 ... 128
5.4.3 ICT Regulations 2012 ... 130
5.5 Interview Data Collection ... 131
5.5.1 Interview with Informants ... 133
5.6 Data Analysis ... 133
5.6.1 Inter Rating of Themes ... 136
5.7 Research Findings ... 137
5.7.1 Discussion on Perception on Structural Capability ... 137
5.7.1.1 IT Position ... 137
5.7.1.2 IT Roles ... 138
5.7.1.3 IT Responsibilities ... 139
5.7.2 Discussion on Perception on Process Capability ... 144
5.7.2.1 IT Tools ... 144
5.7.2.2 IT Monitoring Procedures ... 147
5.7.2.3 IT Experience ... 153
5.7.3 Discussion on the Perception on Relational Capability ... 157
5.7.3.1 IT Strategic Dialogue ... 157
5.7.3.2 Shared Learning ... 161
5.7.3.3 Participation ... 164
5.8 Inference from Findings: How Management Govern IT ... 168
5.8.1 Dimensions of ITG Mechanism ... 172
5.8.2 Conceptualising the ITG Model ... 173
xii
5.9 Chapter Summary... 175
CHAPTER SIX: CORRELATIONAL STUDY ... 176
6.1 Introduction ... 176
6.2 Population and Sample Design ... 177
6.2.1 Sampling Frame ... 177
6.3 Survey Instrumentation ... 179
6.3.1 Evaluation of the Scale ... 180
6.3.2 Construct Definition ... 181
6.3.3 Designing the Scale ... 182
6.4 Scale Content Validity ... 183
6.4.1 Selecting a Panel of Experts ... 184
6.4.2 Description of the Reviewer’s Response Form ... 184
6.4.3 Face Validity of Instrument ... 185
6.4.4 Content Validity (CV) ... 186
6.4.4.1 Content Validity Index for Items (I-CVI) ... 186
6.4.4.2 Content Validity Index for Scale (S-CVI) ... 189
6.4.5 Refinement of the Instrument ... 189
6.5 Pilot Study ... 190
6.5.1 Item Analysis ... 191
6.6 Data Collection... 192
6.7 Data Analysis ... 194
6.7.1 Theoretical Underpinnings ... 194
6.7.2 The Sampling and Respondents ... 194
6.7.3 Descriptive Statistics ... 195
6.7.3.1 Test of Normality of Constructs ... 195
6.7.3.2 Constructs’ Profile ... 196
6.7.3.3 Respondents’ Profile ... 197
6.7.3.4 Universities’ Profile ... 198
6.7.4 Evaluating the Assumptions of Factor Analysis ... 199
6.7.5 Evaluating the Correlation Matrix CM ... 200
6.7.6 Extracting Factors and Observing Cut-offs ... 201
6.7.6.1 Factors’ Extraction ... 201
6.7.6.2 Factors’ Rotation ... 201
6.7.6.3 Matrix Communalities ... 202
6.7.7 Describing the Matrixes ... 202
6.7.8 ITG Mechanism ... 203
6.7.9 ITG Absorptive Capacity ... 208
6.7.10 Organisation ITG Performance ... 211
6.7.11 Describing and Interpreting Extracted Factors ... 214
6.7.12 Factor Based Scores ... 218
6.8 Instrument Reliability... 219
6.9 Multiple Regression Analysis ... 225
6.9.1 Goal of the Regression Analysis ... 225
6.9.2 ITG Absorptive Capacity: A Moderating or Mediating Construct 226 6.9.3 Assumptions in Using MRA ... 229
6.9.4 Path a: Does ITG Mechanism Predicts ITG Absorptive Capacity? ... 230
xiii
6.9.5 Path b: Does ITG Absorptive Capacity Predicts Organisation ITG
Performance? ... 231
6.9.6 Path c: Does ITG Mechanism Predicts Organisation ITG Performance Initially? ... 232
6.9.7 Path d: Does ITG Absorptive Capacity Mediates the Prediction of Organisation ITG Performance by ITG Mechanism? ... 233
6.9.8 ITG Model’s Variables Relationship ... 233
6.10 Chapter Summary... 237
CHAPTER SEVEN: CONCLUSIONS ... 239
7.1 Introduction ... 239
7.2 Research Achievement ... 239
7.2.1 Objective 1: IT Governance to Management of Universities ... 240
7.2.1.1 IT Roles in University’s Administration ... 240
7.2.1.2 Centralising the Decentralised IT Positions ... 240
7.2.1.3 Executives and Senior Managers Occupying IT Responsibilities ... 241
7.2.1.4 The IT Tools in Use ... 241
7.2.1.5 University’s IT Monitoring Procedures in Place ... 242
7.2.1.6 University Stakeholders’ IT Experiences ... 245
7.2.1.7 The Strategic Dialogue between Stakeholders and IT Function ... 245
7.2.1.8 The Employees Shared Learning ... 247
7.2.1.9 Stakeholders’ IT Participation ... 247
7.2.2 Objective 2: Identify the Underlying Dimensions of ITG Model . 249 7.2.3 Objective 3: Validate the Underlying Dimensions of ITG Model 251 7.2.4 Objective 4: Investigate the Relationship Among Variables of the Model ... 251
7.2.4.1 ITG Mechanism Predicting ITG Absorptive Capacity ... 251
7.2.4.2 ITG Absorptive Capacity Predicting ITG Performance ... 252
7.2.4.3 ITG Mechanism Predicting Organisation ITG Performance Directly ... 252
7.2.4.4 ITG Absorptive Capacity Mediating the Prediction of Organisation ITG Performance by ITG Mechanism ... 253
7.2.4.5 ITG Mechanism Predicting Organisation ITG Performance Even after the Mediating Effect of ITG Absorptive Capacity ... 253
7.3 Implication and Contribution of Study ... 254
7.3.1 Theoretical Implication of Study ... 254
7.3.1.1 ITG Model for Universities ... 254
7.3.1.2 Embed Absorptive Capacity in ITG Research Stream ... 255
7.3.1.3 An Empirical Study of ITG in Malaysia Universities ... 255
7.3.2 Methodological Implication of Study ... 256
7.3.2.1 Mixed Method Research Design ... 256
7.3.2.2 Contingency Methodologies of Data Collection ... 256
7.3.3 Practical Implication of Study ... 256
7.3.3.1 Achieving Value from Governance of IT ... 256
7.3.3.2 Measuring Organisation through Knowledge Capabilities ... 257
xiv
7.3.3.3 Sustaining Organisation Performance through ITG ... 257
7.4 Study Limitations and Future Directions ... 258
7.4.1 Limitations ... 258
7.4.1.1 Phenomenological Single Case Study ... 259
7.4.1.2 Response Rate ... 260
7.4.1.3 Early Stage of Instrument Development ... 260
7.4.1.4 Availability of Funding ... 260
7.4.2 Future Direction ... 261
7.4.2.1 Embedding Multiple Theories into IS Research ... 261
7.4.2.2 Availing Contingency Methods in IS Research Design ... 261
7.4.2.3 Working on Bigger Samples ... 262
7.4.2.2 Testing and Retesting to Validate the Model ... 262
7.4.2.3 Adapting the Model and Scale to Non-Educational Sector ... 262
7.4.2 Future Direction ... 261
7.5 Conclusion and Recommendations ... 263
REFERENCES ... 266
APPENDIX A: Qualitative Audit Trail ... 277
ITEM 1: Letter for Interview Session ... 279
ITEM 2: Feedback on Interview ... 280
ITEM 3: Research and Interview Questions Before and After Pilot ... 281
ITEM 4: Informed Consent Form ... 282
ITEM 5: Excerpt from Transcript of First Interview With Informant 2 ... 284
ITEM 6: Data Coding ... 286
ITEM 7: Rating of Themes ... 287
ITEM 8: Combination of Main Ideas Categorised by Questions and Informants ... 288
ITEM 9: Invitation as Inter-Rater ... 289
ITEM 10: Inter Rater Agreement ... 290
ITEM 11: IIUM Strategic Documents ... 295
ITEM 12: IIUM Organisation Structure ... 295
ITEM 13: IIUM IT Organisation Chart ... 297
ITEM 14: Profile of Experts for Inter Rating ... 298
ITEM 15: Calculation of Inter-Raters’ Kappa’s Ratio ... 299
ITEM 16: Themes Classified by Discourse Units ... 301
APPENDIX B: Quantitative Audit Trail ... 308
ITEM 1: Letter to Experts on Content Validity ... 310
ITEM 2: Content Validity Judgement ... 311
ITEM 3: Profile of Judges For Content Validity ... 319
ITEM 4: Pilot Survey ... 320
ITEM 5: Instrument Reliability Test ... 323
ITEM 6: Items in the Instrument for the Main Survey ... 324
ITEM 7: Editing Refined Questionnaire... 327
ITEM 8: Survey of ITG and HEIs in Malaysia ... 328
ITEM 9: Online Data Collection ... 330
ITEM 10: Constructs’ Response Statistics ... 331
xv
ITEM 11: Correlation Matrix of ITG Mechanism ... 332
ITEM 12: PCA on ITG Mechanism Subscale ... 333
ITEM 13: PCA on ITG Absorptive Capacity Subscale ... 334
ITEM 14: PCA on Organisation ITG Performance Subscale ... 335
ITEM 15: MRA on how Absorptive Capacity Predicts Performance after Controlling for Mechanism ... 336
APPENDIX C: Research Publications ... 337
ITEM 1: Conference Papers in Proceedings ... 337
ITEM 2: Scopus-Indexed Conference Publications ... 337
ITEM 3: Scopus-Indexed Journal Publication ... 337
xvi
LIST OF TABLES
Table 2.1 ITG Definition 17
Table 2.2 33 Best Practices For Enterprise Governance of IT 23
Table 2.3 List of ITG Frameworks 28
Table 2.4 Studies of ITG in Higher Education Institutions 34
Table 2.5 Public Institution of Higher Learning by Categorisation, Characteristics 38
Table 2.6 Private Higher Educational Institutions (PvIHE) 39
Table 2.7 Studies on ITG in Malaysia 46
Table 2.8 ITG Studies Leveraging on Theories 59
Table 3.1 Antecedent Factors Identified in ITG Research 87
Table 3.2 Absorptive Capacity Conceptualised in Literature 88
Table 3.3 Performance Measurement Indicators (PMIs) in IS Research 89 Table 4.1 Mixed Method Research Design Combinations Matrix 106
Table 4.2 Methods in ITG Empirical Studies 111
Table 4.3 Preliminary Identified Dimensions on ITG Model 116
Table 5.1 ITD Classified by Sectional Unit 126
Table 5.2 Summarised Analysis of IIUM Documents 131
Table 5.3 Profile of Informants 132
Table 5.4 Interview Transcript 134
Table 5.5 Combining Ideas into Themes 135
Table 5.6 Discourse Units on IT Positions 138
Table 5.7 Discourse Units on IT Roles 138
Table 5.8 Discourse Units on IT Responsibilities 139
Table 5.9 Discourse Units on Tools 145
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Table 5.10 Discourse Units on Monitoring Procedures 148
Table 5.11 Discourse Units on IT Experience 154
Table 5.12 Discourse Units on Strategic Dialogue 158
Table 5.13 Discourse Units on Shared Learning 162
Table 5.14 Discourse Units on Participation 165
Table 5.15 Matrix Categorisation of Generated Themes 169
Table 5.16 Operational Definitions of Themes 170
Table 5.17 Relationship of ITG Variables from Literature 174
Table 6.1 University Sampling Frame 178
Table 6.2 Structure of the Data-Driven Questionnaire 181
Table 6.3 Calculating the Content Validity Index Ratio 187
Table 6.4 Refinement of Instrument 192
Table 6.5 Respondents' Feedback from Survey 193
Table 6.6 Test of Normality for Constructs 195
Table 6.7 ITG Descriptive Statistics of the Constructs 196
Table 6.8 Frequency Distribution of Respondents 198
Table 6.9 Universities’ Descriptive Statistics 199
Table 6.10 Comparing Oblique and Orthogonal Rotated Factors Loading on ITG
Mechanism 204
Table 6.11 Total Variance Explained on ITG Mechanism Subscale 205 Table 6.12 Reliability Statistics of ITG Mechanism Subscale 207 Table 6.13 Comparing Oblique and Orthogonal Rotated Factors Loading on ITG
Absorptive Capacity 208
Table 6.14 Total Variance Explained on ITG Absorptive Capacity Subscale 209 Table 6.15 Reliability Statistics of Absorptive Capacity Subscale 210
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Table 6.16 Comparing Oblique and Orthogonal Rotated Factors Loading on
Organisation ITG Performance 212
Table 6.17 Total Variance Explained on Organisation ITG Performance Subscale 213 Table 6.18 Reliability Statistics of Organisation ITG Performance Subscale 213
Table 6.19 Components Naming of ITG Mechanism Subscale 215
Table 6.20 Components Naming of ITG Absorptive Capacity Subscale 216 Table 6.21 Components Naming of Organisation ITG Performance Subscale 217 Table 6.22 Factor Loading on ITG Model Classified by Subscales 218 Table 6.23 Internal Consistency of Organisation ITG Performance Subscale 220
Table 6.24 Final ITG Measurement Scale 223
Table 6.25 Relationship between ITG Mechanism and ITG Absorptive Capacity 230 Table 6.26 Relationship between ITG Absorptive Capacity and ITG Organisation
Performance 232
Table 6.27 Relationship between ITG Mechanism and Organisation ITG
Performance 233
Table 6.28 The Mediating effect ITG Absorptive Capacity 235
Table 6.29 MRA of Variables in ITG Model 236
Table 7.1 Identified Variables with their Dimensions for ITG Model 249 Table 7.2 Validated Variables with their Dimensions for ITG Model 250
Table 7.3 Research Overview Pathway 259
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LIST OF FIGURES
Figure 1.1 ITG Conceptual Model 8
Figure 2.1 Emerging Trends in IT 20
Figure 2.2 Layers of Organisation IT Governance 21
Figure 2.3 The Evolution of IT Governance 25
Figure 3.1 Cohen and Levinthal's Model of Absorptive Capacity 69
Figure 3.2 Zahra and George's Model of Absorptive Capacity 71
Figure 3.3 Todorova and Durisin's Model of Absorptive Capacity 73
Figure 3.4 Dimensions of Contingency Theory 80
Figure 3.5 Absorptive Capacity's Contingency Effect 82
Figure 3.6 Conceptual ITG Model 86
Figure 4.1 Mixed-Method Design Matrix 103
Figure 4.2 Typology of Mixed Method Research Design 105
Figure 4.3 Study's Mixed Method Research Design 108
Figure 4.4 Chosen Research Design 113
Figure 5.1 Office of the Deputy Rector Organisational Chart 141
Figure 5.2 The Structural Capability of IT 143
Figure 5.3 The Process Capability of IT 156
Figure 5.4 The Relational Capability of IT 167
Figure 5.5 Dimensions of IT Governance Mechanism 172
Figure 5.6 Conceptualised ITG Model 174
Figure 6.1 Sample of Construct and Items as Defined in the Summated Scale 181
Figure 6.2 Moderator-Predictor Relationship of ITG Model 226
Figure 6.3 Mediator-Predictor Relationship of ITG Model 228
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Figure 6.4 ITG Model for HEIs 237
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LIST OF ABBREVIATION
ACAP Absorptive Capacity
CG Corporate Governance
CIO Chief Information Officer
CISR Center for Information Systems Research
FCMS Faculty of Computer & Mathematical Sciences Universiti Teknologi Mara, Malaysia
FCSIT Faculty of Computer Science & Information Technology, Universiti Malaysia Sarawak
HEI Higher Education Institutions HIC Horizontal Integration Capabilities
ITAG Information Technology Alignment and Governance Research Institute ITG Information Technology Governance
IT Information Technology
ISACA Information Systems Audit and Control Association ISP Information System Plan
KICT Kulliyyah of Information and Communication Technology, International Islamic University Malaysia
KOED Kulliyyah of Education, International Islamic University Malaysia K/C/D/I/O Kulliyyah/Centre/Division/Institute/Offices
MAMPU Malaysian Administrative Modernisation and Management Planning Unit
MOHE Ministry of Higher Education
OL Organisation Learning
OP Organisation Performance
PIHE Public Institutions of Higher Education PvIHE Private Institutions of Higher Education SISP Strategic Information System Planning SOX Sarbanes-Oxley Act
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NOTATIONAL CONVENTION
Symbol Meaning
DU Discourse Unit
R Researcher
I1 First Informant
I2a Second Informant’s 1st Interview
I2b Second Informant’s 2nd Interview
I3 Third Informant
I4 Fourth Informant
… Thinking Time
Hmm Agreement
Yeah Agreement
// // Simultaneous utterances made by Researcher and Informant Words in italic Words in other languages
[ ] Missing words to afford flow of Informant DU
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1. CHAPTER ONE INTRODUCTION
1.1 RESEARCH BACKGROUND
The way computer and its devices are leverage to numerous uses in recent times has become a household awareness. This awareness is so as the pervasive use of IT has become a vital and integral part of today’s organisation (Jairak, Praneetpolgrang, &
Subsermsri, 2015). However, there has been an increase in the challenge of getting values from investments in Information Technology, IT (Carr, 2003). It led to growing concerns as IT projects continue to fall short of expectations (Schwalbe, 2010; Standish- Group, 1995; Weill & Woodham, 2002). The situation invariably results into withholding of IT investments by high-level managers of organisations, as they, when interpreting Carr’s advocacy, become weary of the strategic value of IT (Bannister &
Remenyi, 2005). Such concern gave birth to the concept of corporate governance more especially with Enron and WorldCom’s incidence (Bhattacharjya & Chang, 2007;
Jairak et al., 2015).
The need to justify continuous expenditure in IT informed the ITG paradigm.
This need arises from the constant IT project failures (Schwalbe, 2010; Standish-Group, 1995; Weill & Woodham, 2002) in the face of the caution on the strategic value of IT (Carr, 2003). Given this warning, managers have to account for IT spending and show that it begets value (Creasey, 2008). In fact, distributing the extent of investments in IT regarding maintenance, services, human resources as well as the project is of great importance in the modern reality (Lunardi, Becker, Maçada, & Dolci, 2014). This
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realisation does not preclude universities and thus there is a need for them to also uniquely govern their IT (Jairak et al., 2015).
In fact, the demand for IT-based products has increased in universities as a result of the increase in students’ population (Bhattacharjya & Chang, 2007). The same applies to the need for governance of IT. How an organisation’s IT positions itself strategically, tells more on the outcome of such effort. In today’s competitive environment, private as well as public universities have to be up and doing. IT has been more than a tool-in-hand for such competitiveness. It opens new avenues for teaching and research in higher education with a pervasiveness that calls for an examination of how universities derived value from’ IT leverage.
The corporate governance concept requires tighter regulations that organisation are expected to comply by their leverage on IT. The Sarbanes-Oxley Act, Base II, and information and privacy-related legislation of Malaysian Personal Data Protection Act are examples of rules and regulations enacted into laws. These are the case so as to ensure that IT-functions are efficient and effective (Lunardi et al., 2014). In fact, the Malaysian government in coming to terms with the pervasiveness of IT has been spending year round in an incremental manner on IT (Tan, Teo, & Lai, 2011). For example, in its Malaysia Plan, now at the 11th stage, Information Communication and Technology ICT allocations, as well as its revenue growth to Gross Domestic Product GDP, have been on the increase (Tan et al., 2011; Teo, AbdManaf, & Choong, 2013).
As a result, the government identified ICT as a National Key Economic Area that will drive its vision of leaping onto the stage of the developed nation by 2020.
In reality today, there is no doubt that IT has strategic implication with the potential to deliver strategic value continuously at all levels (Bannister & Remenyi, 2005). These values are not restricted to the back office applications alone but also to
