Agility matters! Agile Mechanisms in IT Governance and their Impact on Firm Performance

Abstract

With significant advancements in digital technologies, firms find themselves competing in an increasingly dynamic business environment. It is of paramount importance that organizations undertake proper governance mechanisms with respect to their business and IT strategies. Therefore, IT governance (ITG) has become an important factor for firm performance. In recent years, agility has evolved as a core concept for governance, especially in the area of software development. However, the impact of agility on ITG and firm performance has not been analyzed by the broad scientific community. This paper focuses on the question, how the concept of agility affects the ITG–firm performance relationship. The conceptual model for this question was tested by a quantitative research process with 400 executives responding to a standardized survey. Findings show that the adoption of agile principles, values, and best practices to the context of ITG leads to meaningful results for governance, business/IT alignment, and firm performance.