The Components and Practice of Information Technology Governance

Abstract

Previous studies primarily focused on the IT decision allocation in information technology governance, this paper propose that IT governance is part of corporate governance, it is IT related decision making, motivation and constraint mechanism to work out the asymmetric information problem between shareholders and managers and to maximize IT revenue designed by shareholders-centered stakeholders. IT governance is the combine mechanism of the motivation mechanism, constraint mechanism and decision-making mechanism. This paper also investigate 11 companies around Wuhan , China, and find IT governance exists and in the initial stage.