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Rethinking IT governance for SMEs

Jan Devos UGent, Hendrik Van Landeghem UGent and Dirk Deschoolmeester UGent (2012) INDUSTRIAL MANAGEMENT & DATA SYSTEMS. 112(1-2). p.206-223
abstract
Purpose - The purpose of this paper is to critically rethink the concepts and the theoretical foundations of IT governance in small- and medium-sized enterprises (SMEs). Design/methodology/approach - The paper is based on multiple case studies. In total, eight cases of outsourced information system projects where failures occurred were selected. An outsourced information system failure (OISF) is suggested as a failure of governance of the IT in a SME environment. A structure for stating propositions derived from two competing theories is proposed (Agency Theory and Theory of Trust). Findings - The results reveal that trust is slightly more important than control issues such as output-based contracts and structured controls in the governance of IT in SMEs. Practical implications - The world of SMEs is significantly different from that of large companies, and therefore, the concept of IT governance in SMEs needs reconsideration. For researchers and practitioners, it would be more meaningful to focus on actual, working SMEs instead of on a version of their activities derived from those of large companies. Originality/value - The paper offers two contributions. First, it elaborates the limited research on IT in SMEs and second, it brings theoretical foundations for their IT governance. The value of IT governance in SMEs is explained.
Please use this url to cite or link to this publication:
author
organization
year
type
journalArticle (original)
publication status
published
subject
keyword
Information systems, Information technology, Small to medium-sized enterprises, ADOPTION, TECHNOLOGY, TRUST, AGENCY THEORY, ERP IMPLEMENTATION, SOFTWARE-DEVELOPMENT, MEDIUM-SIZED ENTERPRISES, INFORMATION-SYSTEMS, DEVELOPMENT-PROJECTS, SMALL BUSINESS, IS failures, IT governance, Agency theory, Trust
journal title
INDUSTRIAL MANAGEMENT & DATA SYSTEMS
Ind. Manage. Data Syst.
volume
112
issue
1-2
pages
206 - 223
Web of Science type
Article
Web of Science id
000302509300011
JCR category
ENGINEERING, INDUSTRIAL
JCR impact factor
1.674 (2012)
JCR rank
9/43 (2012)
JCR quartile
1 (2012)
ISSN
0263-5577
DOI
10.1108/02635571211204263
language
English
UGent publication?
yes
classification
A1
copyright statement
I have transferred the copyright for this publication to the publisher
id
1932283
handle
http://hdl.handle.net/1854/LU-1932283
date created
2011-10-18 14:14:28
date last changed
2015-06-17 09:51:13
@article{1932283,
  abstract     = {Purpose - The purpose of this paper is to critically rethink the concepts and the theoretical foundations of IT governance in small- and medium-sized enterprises (SMEs). Design/methodology/approach - The paper is based on multiple case studies. In total, eight cases of outsourced information system projects where failures occurred were selected. An outsourced information system failure (OISF) is suggested as a failure of governance of the IT in a SME environment. A structure for stating propositions derived from two competing theories is proposed (Agency Theory and Theory of Trust). Findings - The results reveal that trust is slightly more important than control issues such as output-based contracts and structured controls in the governance of IT in SMEs. Practical implications - The world of SMEs is significantly different from that of large companies, and therefore, the concept of IT governance in SMEs needs reconsideration. For researchers and practitioners, it would be more meaningful to focus on actual, working SMEs instead of on a version of their activities derived from those of large companies. Originality/value - The paper offers two contributions. First, it elaborates the limited research on IT in SMEs and second, it brings theoretical foundations for their IT governance. The value of IT governance in SMEs is explained.},
  author       = {Devos, Jan and Van Landeghem, Hendrik and Deschoolmeester, Dirk},
  issn         = {0263-5577},
  journal      = {INDUSTRIAL MANAGEMENT \& DATA SYSTEMS},
  keyword      = {Information systems,Information technology,Small to medium-sized enterprises,ADOPTION,TECHNOLOGY,TRUST,AGENCY THEORY,ERP IMPLEMENTATION,SOFTWARE-DEVELOPMENT,MEDIUM-SIZED ENTERPRISES,INFORMATION-SYSTEMS,DEVELOPMENT-PROJECTS,SMALL BUSINESS,IS failures,IT governance,Agency theory,Trust},
  language     = {eng},
  number       = {1-2},
  pages        = {206--223},
  title        = {Rethinking IT governance for SMEs},
  url          = {http://dx.doi.org/10.1108/02635571211204263},
  volume       = {112},
  year         = {2012},
}

Chicago
Devos, Jan, Hendrik Van Landeghem, and Dirk Deschoolmeester. 2012. “Rethinking IT Governance for SMEs.” Industrial Management & Data Systems 112 (1-2): 206–223.
APA
Devos, Jan, Van Landeghem, H., & Deschoolmeester, D. (2012). Rethinking IT governance for SMEs. INDUSTRIAL MANAGEMENT & DATA SYSTEMS, 112(1-2), 206–223.
Vancouver
1.
Devos J, Van Landeghem H, Deschoolmeester D. Rethinking IT governance for SMEs. INDUSTRIAL MANAGEMENT & DATA SYSTEMS. 2012;112(1-2):206–23.
MLA
Devos, Jan, Hendrik Van Landeghem, and Dirk Deschoolmeester. “Rethinking IT Governance for SMEs.” INDUSTRIAL MANAGEMENT & DATA SYSTEMS 112.1-2 (2012): 206–223. Print.