A Model of Effective IT Governance for Collaborative Networked Organizations

Abstract

Inter-organizational collaboration based on the use of IT systems is now essential for organizations working as Collaborative Networked Organizations (CNOs). However, little research has been done to examine the critical success factors involved in shared IT governance among members of a CNO. Accordingly, this research develops a model of inter-organizational IT-governance composed of critical success factors (CSFs) and key performance indicators. The study defines fourteen CSFs that are classified under the main four categories of IT governance, which include strategic alignment, resource management, value delivery and risk management, and performance measurement. In addition, the study identifies key performance indicators that measure the CSFs and evaluate the effectiveness of how partners work together in joint processes for a common goal. The main dimensions of the KPIs include consensus, alignment, accountability, trust, involvement and transparency. The model was validated by gathering feedback from participants in a healthcare on the importance of the CSFs and performance indicators. The findings confirm the importance of the CSFs but suggest that they could be ranked in order of criticality. In addition, certain CSFs were re-defined based on the experience of CNO participants and questions were raised related to the context of the CNO, which influences participant perceptions, as well as the degree of formalization noted in the CNO.