IT Governance Effectiveness and Its Influence on Innovation Product and Process

Information technology (IT) and innovation are topics that receive the attention among academics. However, the increasing and pervasive dependence on IT from organizations have raised a lot of concerns on the topic of IT governance (ITG). ITG and innovation do not have had the attention among academics. This study aims to examine the relationship among effective ITG, ITG relevant knowledge and how they influence innovation product and process. This study uses structural equation modeling (SEM) to evaluate 215 valid surveys that were collected from members of the respective local chapters located in Bogotá - Colombia of the following institutions: Information Systems Audit and Control Association (ISACA) and Project Management Institute (PMI). In addition, members of the Colombian computer science engineers association (ACIS) also participate answering our survey instrument. Our study found that ITG has positive and significant influence on innovation product and process. ITG relevant knowledge influences positively ITG especially when ITG experience is high, however, when the ITG experience is low, its effect is perceived as negative on innovation product and process.