Dynamic capabilities for firm performance under the information technology governance framework

Abstract

Purpose This paper aims to investigate the role of dynamic capabilities in the Information Technology (IT) Governance view framework and explores the relationship between three domains of IT governance (Strategy, Management and Operations) and firm performance. Design/methodology/approach In this study, the authors used a mixed methods approach and using a survey instrument and its validation with interviews, to collect data from 134 successful European SMEs in the multi-country setting of Belgium, Bulgaria, Denmark, Spain and the UK. Findings The findings show that various IT governance mechanisms function as dynamic capabilities and are directly associated with firm performance. The impact of each mechanism is different. Originality/value This study highlights the relationship between IT governance acumens and organisational performance. It contributes to the field of IT Governance Framework in management, and the results may be generalisable to wider economies and different organisation types.