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Information Technology Governance Mechanisms For Organisational Security Commerce Essay

This paper reports research in advancement work on IT administration in Malayan houses. The paper addresses determiners and impact of IT administration effectivity based on old surveies. This is followed by development of a proposed research model and hypotheses.

Keywords-IT administration ; construction ; procedure ; relational mechanisms ; organizational civilization ; environmental uncertainness


The flourishing growing of e-commerce, e-business, societal and concerns networking has exposed the direction of corporate information to a broad scope of internal and external exposures, therefore demanding extenuation of hazard through proper information engineering ( IT ) administration or more specifically through palliating models such as Service Oriented Architecture administration model [ 11 ] . Academicians and IT practicians have included IT administration as portion of administration ‘s overall effectual internal control to turn to security issues and manage hazard [ 27 ] . IT administration concentrating on information security has therefore become an built-in portion of corporate administration scheme and in strategic information systems program [ 17 ] .

The lifting involvement in IT administration is besides partially due to regulative conformity enterprises ( e.g. Sarbanes-Oxley in the United States, Basel II in Europe ) , every bit good as the recognition that IT undertakings can easy acquire out of control and deeply impact the public presentation of an administration. In Malaysia, conformity jurisprudence such as Malayan Code of Governance enforced since the twelvemonth 2000 is based on Committee of Sponsoring Organizations of the Treadway Commission ‘s Internal Control – Integrated Framework ( COSO ) that sets out best patterns on constructions and procedures in operations towards accomplishing good administration model.

IT Governance

IT administration refers to three nucleus elements i.e. construction, procedure, and relational mechanisms [ 14 ] ; [ 41 ] ; [ 61 ] . Other research workers refers IT administration as, how IT determinations are made and who is responsible for doing determinations [ 19 ] ; [ 20 ] ; [ 26 ] ; [ 48 ] ; [ 56 ] ; weillwoodham [ 62 ] ; [ 65 ] . To Rolich [ 46 ] and Webb et Al. [ 60 ] , IT administration means the control and monitoring of IT-related hazards.

Congruent with the definitions provided by de Haes and new wave Grembergen [ 14 ] , and Peterson et Al. [ 40 ] , IT administration, in this research refers to as a set of mix mechanisms of IT resource constructions, procedures and relational mechanisms put in topographic point to put out how determinations are made, who is responsible for doing determinations, who is responsible for guaranting that determinations get implemented, and that determinations really do acquire implemented.

Why IT Governance?

IT administration is of import for several grounds. First, IT is an expensive venture. Since most administration see IT an indispensable and necessary plus for concern growing and organizational public presentation, considerable investing are made to construct IT enabling substructure. However, increased in IT outgo may non needfully derive the coveted value in concern. Thus IT practicians have expounded the demand for administration to be articulated throughout the IT investing procedure that will guarantee required value and expected concern ends are being delivered [ 33 ] .

IT administration is a vehicle to enable organizational sustainability. Given that IT is indispensable for daily concern operation to advance concern growing and invention, IT must be managed decently via effectual IT administration. Invention in IT is considered as critical and cardinal for future and long term sustainability.

IT administration is a tool for accomplishing concern and IT alliance. Coordinated IT administration enables concern units to work in partnership with IT so that concern demands are met. In order to so, a civilization of openness and coaction should be cultivated to make a province of harmoniousness between concern and IT.

Business operations trusting on IT is vulnerable to many IT-related hazards. IT administration provides the necessary shield to protect administration information and substructure from harmful menaces. Gaining this, most administrations have turned to specific and extra bed of protection through enterprise-wide IT security administration, like ISO17799.

research spread

In the yesteryear, research workers on IT administration have attempted to specify IT administration [ 40 ] ; [ 60 ] ; [ 52 ] and understand the factors that are associated with effectivity of IT administration [ 45 ] ; [ 10 ] ; [ 12 ] ; [ 26 ] ; [ 32 ] ; [ 59 ] . Research workers have shown the relationship between IT administration and organizational public presentation [ 45 ] ; [ 39 ] ; [ 3 ] ; [ 23 ] . The research design used in old researches was chiefly explorative and qualitative [ 48 ] ; [ 36 ] ; [ 6 ] ; [ 38 ] ; [ 63 ] ; [ 65 ] ; [ 64 ] ; and really few adopted quantitative methods. Further, the contexts of the researches were in states like United States [ 56 ] ; [ 52 ] , Australia [ 36 ] ; [ 59 ] , and Europe [ 41 ] ; [ 29 ] ; [ 15 ] ; [ 16 ] .

Administrations in a underdeveloped state such as Malaysia, presents distinguishable organizational values from developed states. This research attempts to make full in the spreads on:

The deficiency of empirical findings on IT administration in Malayan houses.

An incorporate model that can explicate the factors act uponing effectivity and importance of IT administration patterns and its effects on organizational public presentation.

Findingss that could be generalised to the Malayan context.

The application of quantitative research design in IT administration research.

Therefore, this survey seeks to reply the undermentioned research inquiries ;

Is there a spread between effectivity and perceived importance of IT administration patterns in Malayan houses?

What are the factors that influence IT administration effectivity in Malayan houses?

Is there a relationship between IT administration effectivity and organizational public presentation?

Henceforth the research aims are as follows ;

To find the spread between effectivity and perceived importance of IT administration execution in Malayan houses

To research factors that influence IT administration execution effectivity in Malayan houses

To place the types of organizational features ( higher IT budgets, larger administrations, longer established administrations, equity construction ) influence IT administration effectivity in Malayan houses

To look into whether higher information strength relate to a more effectual IT administration in Malayan houses

To look into whether Malayan houses with higher environmental uncertainness have more effectual IT administration

To look into whether Malayan houses with certain types of organisation civilization have more effectual IT administration

To look into whether Malayan houses with a more full-blown IT substructure have more effectual IT administration

To find if IT administration execution effectivity has effects on organizational public presentation in Malayan houses

To develop, validate and prove a model for IT administration execution effectivity that would explicate the scenario of Malayan houses

Research Model

The research theoretical account will pull on theories from the undermentioned beginnings of literature:

IT administration execution mechanisms [ 41 ] ; [ 61 ] ; [ 14 ] ; [ 15 ] ; [ 16 ] ;

dependant variable taken from resource-based position ( RBV ) [ 10 ] ; [ 29 ] ; [ 32 ] ;

independent variables based on SISP [ 28 ] ; [ 41 ] ; organizational theories [ 10 ] ; [ 12 ] , information security direction [ 9 ] .

Organizational Performance

Past researches have shown that there is important relationship between IT administration and organizational public presentation [ 45 ] ; [ 39 ] ; [ 23 ] . IT administration in this survey refers to the construction, procedure, and relational mechanisms, put in topographic point when implementing IT scheme. Several surveies have confirmed that IT administration patterns like corporate communications systems [ 57 ] , direction coaction with CIO [ 8 ] , and shared cognition between concern and IT [ 25 ] are patterns for effectual IT administration, which lead to public presentation impact. We posit that effectual IT administration patterns solicit stronger support for concern procedure betterments [ 32 ] . Firms with more effectual IT administration hunt out chances for competitory advantage, seek IT-based chances in value concatenation activities, and utilize IT to leverage alone concern strengths.

Therefore, it is hypothesized that:

H1: There is a relationship between IT administration effectivity and organizational public presentation.

Organizational demographics

The organizational demographics highlights the influence of determiners such as organizational size [ 18 ] ; [ 48 ] , company nationality [ 54 ] , and house ‘s age. Though acceptance of IT administration best patterns and/or model like COBIT, ITIL, ISO9000, TQM etc. , has been reckoned to be of import for all sizes of administrations [ 53 ] ; [ 21 ] , nevertheless, survey by Bernroider [ 4 ] showed that some IT administration patterns are more prevailing in big administrations than others.

Surveies have besides shown that parent houses that are owned by foreign companies are more regulated than parent houses that are locally owned [ 13 ] ; [ 54 ] . A house that is obliged to be regulated will be able to implement patterns and/or rules of IT administration than those are non.

In this survey, house age represents the figure of old ages since the house was incorporated. In a quantitative survey in the United States, Ravichandran and Lertwongsatien [ 43 ] found that steadfast age was significantly negative related to steadfast public presentation. The research worker postulates that longer integrated administrations tend to defy alterations, peculiarly when implementing IT administration enterprises.

Therefore, it is hypothesized that:

H2a: There is a relationship between organizational size and IT administration effectivity.

H2b: There is a relationship between company nationality and IT administration effectivity.

H2c: There is a relationship between house ‘s age and IT administration effectivity.

Information strength

Information-intensive industry is grouped as a concept on its ain due to its profound effects on IT administration patterns as reported in the anterior literature [ 28 ] ; [ 54 ] ; [ 59 ] . An information intensive industry uses IT to back up their nucleus activities and place strategic chances [ 7 ] ; [ 28 ] . Administrations in this type of industries are more dependent on IT for the operation of concern procedures. Information intense companies seek out ways to pull off and work their IT administration [ 7 ] .

The undermentioned research hypothesis is postulated:

H3: There is a relationship between houses in information-intensive industry and IT administration effectivity.

Environmental uncertainness

Environmental uncertainness does play a important function in IT administration execution. External factors like authorities and regulative policies, competitory force per unit area, environmental dynamism and turbulency, are said to act upon IT administration execution [ 40 ] ; [ 45 ] ; [ 28 ] ; [ 65 ] .

The undermentioned research hypothesis is postulated,

H4: There is a relationship between houses ‘ external environment and IT administration effectivity.

Organizational civilization

The inclusion of organizational civilization would supply an interesting determination to this survey as anterior surveies have shown its important consequence with IT administration success or effectivity [ 24 ] ; [ 10 ] ; [ 12 ] ; [ 9 ] ; [ 58 ] ; [ 25 ] ; [ 59 ] . Organizational civilization has an influence in implementing IT administration scheme and enable communicating of that scheme to back up strategic waies [ 10 ] . Therefore,

H5: There is a relationship between types of organizational civilization and IT administration effectivity.

IS map features

IS function features represents factors like size of IT budget, size of IT section, and IS function adulthood. IT budget refers to the IT disbursement or IT investings [ 44 ] ; [ 50 ] . With low degree of IT investing, an administration would non anticipate progressive IT administration [ 54 ] .

Sabherwal and Chan [ 44 ] used figure of IS employees to stand for size of IT map. In a meta-analysis, conducted by Lee and Xia [ 34 ] showed that IS section size was a stronger forecaster of IT invention acceptance.

In Lee and Pai [ 33 ] , adulthood of IS map was found to be significantly positive consequence on effectivity of SISP patterns. In an administration where greater IS adulthood is present, the more likely the determination is perceived as of import and greater the opportunity of execution.

Therefore, the undermentioned hypothesis is postulated:

H6a: There is a relationship between size of IT budget and IT administration effectivity.

H6b: There is a relationship between size of IT map and IT administration effectivity.

H6c: There is a relationship between IS function adulthood and IT administration effectivity.

Figure 1 theoretical accounts the research model of this survey.

H2a, B, degree Celsius

Organizational demographics



Information intensifier

IT administration

Organizational public presentation


Environmental uncertainness


Organizational civilization


IS map features

Figure 1: Research Model

Proposed Research methodological analysis

The unit of analysis is organisational degree. The research marks at private administrations in the Klang Valley, in Malaysia. The research will follow a cross-sectional study research being the chief attack via the development of study questionnaire and use of self-administered process. The population and trying frame will be drawn from Bursa Malaysia ( Stock Exchange ) , Federation of Malayan Manufacturers ( FMM ) directory and several other directories including Superpages and Yellow Pages. Since the survey expects to acquire responses on strategic issues, respondent at center or lower degree direction is excluded. A campaigner that has a high-level in the administration hierarchy is more appropriate for this research. Therefore, the key source for this survey is expected to be CIOs, IT managers or frailty president of IT. Data analysis scheme will cover three stages i.e. descriptive, explorative and collateral analysis to accomplish the aims of the research.

Significance Of Study

There will be several theoretical and empirical part of this research. First, is the designation of factors impacting IT administration. Second, development of a model that integrates the determiners and the impact of IT administration effectivity. The research expects to develop, validate and prove the proposed research model. Third, with the usage of quantitative research attack, this research expects to lend to the application of research method for IT administration. The findings from proof and trial of the proposed model is expected to function as an of import guideline and schemes for administrative policy-making to high-level IT executives in concentrating on cardinal elements of IT administration effectivity, their determiners and results.

Advancement To Date

This paper reports research in-progress attempts. Presently, the digest of a study questionnaire is underway. The following measure would be an explorative instance research with selected CIOs to formalize the questionnaire and enhanced research theoretical account. The questionnaire will so be distributed to several IS academicians for a pre-test. Feedback from these two groups will be incorporated into a revised questionnaire for distribution in a pilot survey.

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