Optimizing Business Value via It Governance Mechanisms: An Examination of SMEs in Southern Minas Gerais, Brazil

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Optimizing Business Value via It Governance Mechanisms: An Examination of SMEs in Southern Minas Gerais, Brazil

Journal Title: Journal of Operational and Strategic Analytics - Year 2023, Vol 1, Issue 3

Abstract

IT, increasingly recognized as a vital contributor to competitive advantage, plays an indispensable role in augmenting business value. Effective implementation of IT Governance (ITG) mechanisms, comprising structures of responsibility, control processes, communication protocols, and decision rights, has been found to foster alignment between IT and business objectives. Such alignment is particularly critical for Small and Medium-sized Enterprises (SMEs), where the amplified business value can be realized. Yet, SMEs often grapple with challenges in implementing ITG, owing to resource constraints, communication hurdles, resistance to change, and technological complexity. The present study delves into this complex dynamic within a medium-sized industry located in southern Minas Gerais, Brazil, investigating the deployment of ITG mechanisms as a means to enhance business value through IT. An interpretivist approach characterizes the qualitative, inductive study, drawing on a case study to probe the links between ITG mechanisms, IT capabilities, and business value. Four hypotheses are put forth in the discourse, shedding light on the intricate relationships that these elements share. The findings indicate that ITG mechanisms exert a positive impact on IT business value, albeit with identifiable weaknesses and potential areas for enhancement. More effective alignment between IT and business can be achieved by addressing these shortcomings, thereby mitigating risks such as demotivation among IT professionals and resistance to change.

Authors and Affiliations

Ana L. M. D. Maia, Rodrigo F. Frogeri

Keywords

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EP ID EP731957
DOI https://doi.org/10.56578/josa010301
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