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IT governance in SMEs: trust or control?

Jan Devos UGent, Hendrik Van Landeghem UGent and Dirk Deschoolmeester UGent (2009) IFIP Advances in Information and Communication Technology. 301. p.135-149
abstract
It is believed by many scholars that a small and medium-sized enterprise (SME) cannot be seen through the lens of a large firm. Theories which explain IT governance in large organizations and methodologies used by practitioners can therefore not be extrapolated to SMEs, which have a completely different economic, cultural and managerial environment. SMEs suffer from resource poverty, have less IS experience and need more external support. SMEs largely contribute to the failure of many IS projects. We define an out-sourced information system failure (OISF) as a failure of IT governance in an SME environment and propose a structure for stating propositions derived from both agency theory and theory of trust. The theoretical question addressed in this paper is: how and why do OISFs occur in SMEs? We have chosen a qualitative and positivistic IS case study research strategy based on multiple cases. Eight cases of IS projects were selected. We found that trust is more important than control issues like output-based contracts and structured controls for eliminating opportunistic behaviour in SMEs. We conclude that the world of SMEs is significantly different from that of large companies. This necessitates extra care to be taken on the part of researchers and practitioners when designing artefacts for SMEs.
Please use this url to cite or link to this publication:
author
organization
year
type
conference
publication status
published
subject
keyword
Case Study, Trust, SMEs, Agency Theory, INFORMATION-SYSTEMS, SMALL BUSINESS, DEVELOPMENT-PROJECTS, SOFTWARE-DEVELOPMENT, AGENCY THEORY, TECHNOLOGY, MANAGEMENT, ADOPTION, IMPLEMENTATION, ORGANIZATION
in
IFIP Advances in Information and Communication Technology
IFIP Adv. Inf. Commun. Technol.
editor
Gurpreet Dhillon, BC Stahl and R Baskerville
volume
301
issue title
INFORMATION SYSTEMS - CREATIVITY AND INNOVATION IN SMALL AND MEDIUM-SIZED ENTERPRISES
pages
135 - 149
publisher
Springer
place of publication
Berlin, Germany
conference name
IFIP Conference on the Role of IS in Leveraging the Intelligence and Creativity of SMEs (CreativeSME 2009)
conference location
Guimaraes, Portugal
conference start
2009-06-21
conference end
2009-06-24
Web of Science type
Proceedings Paper
Web of Science id
000271405400010
ISSN
1868-4238
ISBN
9783642023873
DOI
10.1007/978-3-642-02388-0_10
language
English
UGent publication?
yes
classification
P1
copyright statement
I have transferred the copyright for this publication to the publisher
id
752130
handle
http://hdl.handle.net/1854/LU-752130
date created
2009-09-22 22:50:02
date last changed
2010-02-25 18:15:00
@inproceedings{752130,
  abstract     = {It is believed by many scholars that a small and medium-sized enterprise (SME) cannot be seen through the lens of a large firm. Theories which explain IT governance in large organizations and methodologies used by practitioners can therefore not be extrapolated to SMEs, which have a completely different economic, cultural and managerial environment. SMEs suffer from resource poverty, have less IS experience and need more external support. SMEs largely contribute to the failure of many IS projects. We define an out-sourced information system failure (OISF) as a failure of IT governance in an SME environment and propose a structure for stating propositions derived from both agency theory and theory of trust. The theoretical question addressed in this paper is: how and why do OISFs occur in SMEs? We have chosen a qualitative and positivistic IS case study research strategy based on multiple cases. Eight cases of IS projects were selected. We found that trust is more important than control issues like output-based contracts and structured controls for eliminating opportunistic behaviour in SMEs. We conclude that the world of SMEs is significantly different from that of large companies. This necessitates extra care to be taken on the part of researchers and practitioners when designing artefacts for SMEs.},
  author       = {Devos, Jan and Van Landeghem, Hendrik and Deschoolmeester, Dirk},
  booktitle    = {IFIP Advances in Information and Communication Technology},
  editor       = {Dhillon, Gurpreet and Stahl, BC and Baskerville, R},
  isbn         = {9783642023873},
  issn         = {1868-4238},
  keyword      = {Case Study,Trust,SMEs,Agency Theory,INFORMATION-SYSTEMS,SMALL BUSINESS,DEVELOPMENT-PROJECTS,SOFTWARE-DEVELOPMENT,AGENCY THEORY,TECHNOLOGY,MANAGEMENT,ADOPTION,IMPLEMENTATION,ORGANIZATION},
  language     = {eng},
  location     = {Guimaraes, Portugal},
  pages        = {135--149},
  publisher    = {Springer},
  title        = {IT governance in SMEs: trust or control?},
  url          = {http://dx.doi.org/10.1007/978-3-642-02388-0\_10},
  volume       = {301},
  year         = {2009},
}

Chicago
Devos, Jan, Hendrik Van Landeghem, and Dirk Deschoolmeester. 2009. “IT Governance in SMEs: Trust or Control?” In IFIP Advances in Information and Communication Technology, ed. Gurpreet Dhillon, BC Stahl, and R Baskerville, 301:135–149. Berlin, Germany: Springer.
APA
Devos, J., Van Landeghem, H., & Deschoolmeester, D. (2009). IT governance in SMEs: trust or control? In G. Dhillon, B. Stahl, & R. Baskerville (Eds.), IFIP Advances in Information and Communication Technology (Vol. 301, pp. 135–149). Presented at the IFIP Conference on the Role of IS in Leveraging the Intelligence and Creativity of SMEs (CreativeSME 2009), Berlin, Germany: Springer.
Vancouver
1.
Devos J, Van Landeghem H, Deschoolmeester D. IT governance in SMEs: trust or control? In: Dhillon G, Stahl B, Baskerville R, editors. IFIP Advances in Information and Communication Technology. Berlin, Germany: Springer; 2009. p. 135–49.
MLA
Devos, Jan, Hendrik Van Landeghem, and Dirk Deschoolmeester. “IT Governance in SMEs: Trust or Control?” IFIP Advances in Information and Communication Technology. Ed. Gurpreet Dhillon, BC Stahl, & R Baskerville. Vol. 301. Berlin, Germany: Springer, 2009. 135–149. Print.