IT governance and IT application orchestration capability role on organization performance during the COVID-19 pandemic: An intervening of business-IT alignment
Keywords:IT Governance, IT Orchestration Capability, Strategic Alignment, Performances, Education Sector, COVID-19
The COVID-19 pandemic has evolved into a multi-faceted global crisis with massive challenges for any organization around the world. With lockdowns and other social distancing protocols implemented in countries worldwide, economic activities and social interactions become increasingly reliant on technology. This study aimed to examine the intervention role of business-IT alignment on the influence of IT governance (ITG) and IT application orchestration capability (IT-AOC) on organization performances. The educational sector was chosen as an object of study as this sector will experience a decade of radical technology-driven change due to COVID-19's stimulus and there were limited IT-AOC studies that used this sector as a research object. This study use a survey method and purposive sampling with a total classified sample of 55 higher education institutions (HEIs) and 110 respondents involved represent the samples. Data analysis was conducted using a Variance-Based Structural Equation Modeling (VB-SEM) approach of Partial Least Square (PLS) technique. The results suggest that both ITG and IT-AOC have a positive effect on organization performances. Moreover, this study proved that business-IT alignment can intervene the influence of ITG and IT-AOC on organization performances.
Aasi, P., & Rusu, L. (2017). Facing the digitalization challenge: Why organizational culture matters and how it influences it governance performance. Conference: 26th International Conference on Information Systems Development (ISD2017 Cyprus) At: Larnaca, Cyprus.
Abidah, A., Hidaayatullaah, H. N., Simamora, R. M., Fehabutar, D., & Mutakinati, L. (2020). The impact of covid-19 to indonesian education and its relation to the philosophy of â€œMerdeka Belajar.â€ Studies in Philosophy of Science and Education, 1(1), 38â€“49. https://doi.org/10.46627/sipose.v1i1.9
Alach, Z. (2017). The use of performance measurement in universities. International Journal of Public Sector Management, 30(2). Retrieved from http://dx.doi.org/10.1108/IJPSM-05-2016-0089
Ali, S., & Green, P. (2005). Determinants of effective information technology governance. International Journal of Auditing, 17(1), 75â€“99. https://doi.org/10.1111/j.1099-1123.2012.00458.x
Ali, S., & Green, P. (2009). IT governance mechanisms in public sector organisations: An Australian context. Journal of Global Information Management (JGIM), 15(4), 41â€“63. https://doi.org/10.4018/jgim.2007100103
Arora, B., & Rahman, Z. (2017). Investigating the influence of IT capability on sustainable competitive advantage (Bharat Arora).
Baker, D. A., & Crompton, J. L. (2000). Quality, satisfaction and behavioral intentions. Annals of Tourism Research, 27(3), 785â€“804. https://doi.org/10.1016/S0160-7383(99)00108-5
Bandiyono, A., & Muttaqin, A. H. H. (2020). Investigating the success of an E-Auction system initiatives among public servants: Validation of an integrated IS success model. JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen, 17(2), 188-206. http://dx.doi.org/10.31106/jema.v17i1.5050
Barney, J. B. (2000). Firm reources ad sustained competitive advantege. Economics Meets Sociology in Strategic Management (Advances in Strategic Management), Vol. 17, 203-227. https://doi.org/10.1016/S0742-3322(00)17018-4
Bharadwaj, A. S. (2000). A resource-based perspective on information technology capability and firm performance: an empirical investigation. MIS Quarterly, 24(1), 169â€“196.
Bianchi, I. S., Sousa, R. D., Pereira, R., & Luciano, E. (2017). IT governance structures in Brazilian, Dutch and Portuguese universities. Procedia Computer Science, 121, 927â€“933. https://doi.org/10.1016/j.procs.2017.11.120
Bobe, B. J., & Kober, R. (2018). University dean personal characteristics and use of management control systems and performance measures. Studies in Higher Education, 45(2), 235â€“257. https://doi.org/10.1080/03075079.2018.1504911
Brammer, S., & Clark, T. (2020). COVID-19 and management education: Reflections on challenges, opportunities, and potential futures. British Journal of Management, 31(3), 453â€“456. https://doi.org/10.1111/1467-8551.12425
Symons, C. (2005). IT governance framework: Structures, processes, and communication. Best Practices, Forrester Research Inc.
Chan, Y. E., & Reich, B. H. (2007). IT alignment: What have we learned? Journal of Information Technology, 22(4), 297â€“315. https://doi.org/10.1057/palgrave.jit.2000109
Chang, S. J., Van Witteloostuijn, A., & Eden, L. (2010). From the Editors: Common method variance in international business research. Journal of International Business Studies, 41(2), 178â€“184. https://doi.org/10.1057/jibs.2009.88
De Haes, S., & Van Grembergen, W. (2009). An exploratory study into IT governance implementations and its impact on business/IT alignment. Information Systems Management, 26(2), 123â€“137. https://doi.org/10.1080/10580530902794786
De Haes, S., & Van Grembergen, W. (2005). IT governance structures, processes and relational mechanisms: Achieving IT/business alignment in a major Belgian financial group. Proceedings of the Annual Hawaii International Conference on System Sciences, (May 2014), 237. https://doi.org/10.1109/hicss.2005.362
Dodd, T. (2020, July 6), The coronavirus has exposed the university rankings game. The Australian: Higher Education. https://www.theaustralian.com.au/higher-education/thecoronavirus-has-exposed-the-university-rankings-game/news-story/5b5cad62f7bca747c9dbfb4e4229
FernÃ¡ndez, A., & Llorens, F. (2009). An IT governance framework for universities in Spain. EUNIS 2009 Conference, (August), 1â€“13.
Fowler Jr, F. J. (2013). Survey research methods. Washington DC: SAGE Publications, incorporated.
Gerow, J. E., Grover, V., Jason Bennett Thatcher, & Roth, P. L. (2014). Looking toward the future of IT-business strategic alignment through the past: A meta-analysis. MIS Quarterly, 38(4), 1059â€“1085.
Gutierrez, A., Orozco, J., & Serrano, A. (2009). Factors affecting IT and business alignment: a comparative study in SMEs and large organisations. Journal of Enterprise Information Management, 22(1), 197â€“211. https://doi.org/10.1108/17410390910932830
Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2013). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106â€“121. https://doi.org/10.1108/EBR-10-2013-0128
Hill, H., & Wie, T. K. (2012). Indonesian universities in transition: Catching up and opening up. Bulletin of Indonesian Economic Studies, 48(2), 229â€“251. https://doi.org/10.1080/00074918.2012.694156
Kahli, R., & Grover, V. (2008). Business value of IT: An essay on expanding research directions to keep up with the times. Journal of the Association for Information Systems. https://doi.org/10.17705/1jais.00147
Ketchen, D. J. (2013). A Primer on Partial Least Squares Structural Equation Modeling. Long Range Planning, 46(1â€“2), 184â€“185. https://doi.org/10.1016/j.lrp.2013.01.002
Kitsios, F. (2017). Strategic Change Management in Public Sector Transformation : The Case of Middle Manager Leadership in Greece This is the pre-final version . The final paper is available at : Kitsios , F . and M . Kamariotou ( 2017 ). Strategic Change Management in Publi. (November).
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607-610.
Kurniasih, N., Hasyim, C., Wulandari, A., Setiawan, M. I., & Ahmar, A. S. (2018). Comparative case studies on Indonesian higher education rankings. In Journal of Physics: Conference Series (Vol. 954, No. 1, p. 012021). IOP Publishing.
Lazic, M. (2011). IT governance and business performance a resource based analysis. PACIS 2011 - 15th Pacific Asia Conference on Information Systems: Quality Research in Pacific.
Liang, T.-P., Chiu, Y.-C., Shelly P.J. Wu, & Straub, D. (2011). The impact of IT governance on organizational performance. AMCIS 2011 Proceedings - All Submissions., 268.
Lunardi, G. L., Becker, J. L., MaÃ§ada, A. C. G., & Dolci, P. C. (2014). The impact of adopting IT governance on financial performance: An empirical analysis among Brazilian firms. International Journal of Accounting Information Systems, 15(1), 66â€“81. https://doi.org/10.1016/j.accinf.2013.02.001
Means, B., Toyama, Y., Murphy, R., & Baki, M. (2013). The effectiveness of online and blended learning: A meta-analysis of the empirical literature. Teachers College Record, 115(3), 1-47.
Mugge, R., & Schoormans, J. P. L. (2012). Product design and apparent usability. The influence of novelty in product appearance. Applied Ergonomics, 43(6), 1081â€“1088. https://doi.org/10.1016/j.apergo.2012.03.009
Oehlhorn, C. E., Maier, C., Laumer, S., & Weitzel, T. (2020). Human resource management and its impact on strategic business-IT alignment: A literature review and avenues for future research. The Journal of Strategic Information Systems, 101641. https://doi.org/10.1016/j.jsis.2020.101641
Oh, W., & Pinsonneault, A. (2007). On the assessment of the strategic value of information technologies: conceptual and analytical approaches. MIS Quarterly, 31(2), 239-265. https://doi.org/10.2307/25148790
Papadopoulos, T., Gunasekaran, A., Dubey, R., & Fosso Wamba, S. (2017). Big data and analytics in operations and supply chain management: managerial aspects and practical challenges.
Production Planning & Control, 28(11-12), 873-876. https://doi.org/10.1080/09537287.2017.1336795
Parker, L. D. (2020). Australian universities in a pandemic world: transforming a broken business model? Journal of Accounting & Organizational Change, 16(4), 541â€“548. https://doi.org/10.1108/JAOC-07-2020-0086
Ping-Ju Wu, S., Straub, D. W., & Liang, T.-P. (2015). How information technology governance mechanisms and strategic alignment influence organizational performance. MIS quarterly, 39(2), 497-518. https://doi.org/10.25300/MISQ/2015/39.2.10
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879â€“903. https://doi.org/10.1037/0021-9010.88.5.879
Primasari, C. H. (2020). Kematangan keselarasan strategis bisnis dan TI pada lembaga edukasi. Jurnal RESTI (Rekayasa Sistem Dan Teknologi Informasi), 1(10), 1â€“2.
Queiroz, M., Tallon, P. P., Sharma, R., & Coltman, T. (2018). The role of IT application orchestration capability in improving agility and performance. Journal of Strategic Information Systems, 27(1), 4â€“21. https://doi.org/10.1016/j.jsis.2017.10.002
Rai, A., Pavlou, P. A., Im, G., & Steve Du. (2012). Interfirm IT capability profiles and communications for cocreating relational value: Evidence from the logistics industry. Management Information Systems Quarterly, 36(1), 233â€“262.
Ray, G., Muhanna, W. A., & Barney, J. B. (2014). Quarterly and the information technology of the customer performance a resource service process : Based analysis. Information Technology and the Performance of the Customer Service Process: A Resource- Based Analysis, 29(4), 625â€“652.
Reich, B. H., & Benbasat, I. (2000). Factors that influence the social dimension of alignment between business and information technology objectives. MIS Quarterly: Management Information Systems, 24(1), 81â€“113. https://doi.org/10.2307/3250980
Sabherwal, R., & Chan, Y. E. (2001). Alignment between Business and IS Strategies: A Study of Prospectors, Analyzers, and Defenders. Information Systems Research, 12(1), 11â€“33. https://doi.org/10.1287/isre.184.108.40.20614
Sambamurthy, V., & Zmud, R. W. (2000). Research commentary: The organizing logic for an enterprise's IT activities in the digital eraâ€”A prognosis of practice and a call for research. Information Systems Research, 11(2), 105â€“114.
Seman, E. A. A., & Salim, J. (2013). A model for business-IT alignment in Malaysian public universities. Procedia Technology, 11(Iceei), 1135â€“1141. https://doi.org/10.1016/j.protcy.2013.12.305
Setia, P., Venkatesh, V., & Joglekar, S. (2013). Leveraging digital technologies: How information quality leads to localized capabilities and customer service performance. MIS Quarterly: Management Information Systems, 37(2), 565â€“590. https://doi.org/10.25300/MISQ/2013/37.2.11
Shenoy, V., Mahendra, S., & Vijay, N. (2020). COVID 19 lockdown technology adaption, teaching, learning, students engagement and faculty experience. Mukt Shabd Journal, 9(4), 698â€“702.
Sirisomboonsuk, P., Gu, V. C., Cao, R. Q., & Burns, J. R. (2018). Relationships between project governance and information technology governance and their impact on project performance. International Journal of Project Management, 36(2), 287â€“300. https://doi.org/10.1016/j.ijproman.2017.10.003
Sofyani, H., Riyadh, H. A., & Fahlevi, H. (2020). Improving service quality, accountability and transparency of local government: The intervening role of information technology governance. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1735690
Tallon, P. P., Coltman, T., Queiroz, M., & Sharma, R. (2016). Business process and information technology alignment: Construct conceptualization, empirical Illustration, and directions for future research. Journal of the Association for Information Systems, 17(9), 563â€“589. https://doi.org/10.17705/1jais.00438
Tallon, P. P., & Pinsonneault, A. (2011). Competing perspectives on the link between strategic information technology alignment and organizational agility: Insights from a mediation model. MIS Quarterly: Management Information Systems, 35(2), 463â€“486. https://doi.org/10.2307/23044052
Tehseen, S., Ramayah, T., & Sajilan, S. (2017). Testing and controlling for common method variance: A review of available methods. Journal of Management Sciences, 4(2), 142â€“168. https://doi.org/10.20547/jms.2014.1704202
Turel, O., Liu, P., & Bart, C. (2019). Is board IT governance a silver bullet? A capability complementarity and shaping view. International Journal of Accounting Information Systems, 33, 32â€“46. https://doi.org/10.1016/j.accinf.2019.03.002
Ullah, A., & Lai, R. (2013). A systematic review of business and information technology alignment. ACM Transactions on Management Information Systems, 4(1). https://doi.org/10.1145/2445560.2445564
Ulum, I. (2019). Intellectual capital framework perguruan tinggi di Indonesia berdasarkan instrumen akreditasi program studi (IAPS) 4.0. Jurnal Reviu Akuntansi dan Keuangan, 9(3), 309-318. https://doi.org/10.22219/jrak.v9i3.10227
Wade, M., & Hulland, J. (2004). Review: The resource-based view and information systems research: Review, extension, and suggestions for future research. MIS Quarterly: Management Information Systems, 28(1), 107â€“142. https://doi.org/10.2307/25148626
Weill, P., & Ross, J. W. (2004). IT governance: how top performers manage IT decision rights for superior results. 269. Retrieved from http://books.google.com/books?id=xI5KdR21QTAC&pgis=1