Decision archetypes in information technology governance: Reflections in small and medium-sized enterprises

Authors

  • Rodrigo Franklin Frogeri Research Department, University Center of the South of Minas, UNIS, Varginha, MG, Brazil. http://orcid.org/0000-0002-7545-7529
  • Daniel Jardim Pardini Graduate Program in Information Systems and Knowledge Management, FUMEC University, Belo Horizonte, MG, Brazil. http://orcid.org/0000-0003-0422-1639
  • Ana Maria Pereira Cardoso Graduate Program in Information Systems and Knowledge Management, FUMEC University, Belo Horizonte, MG, Brazil. http://orcid.org/0000-0003-1588-6775
  • Pedro dos Santos Portugal Júnior Research Department, University Center of the South of Minas, UNIS, Varginha, MG, Brazil. http://orcid.org/0000-0003-2590-1959

DOI:

https://doi.org/10.14211/regepe.e1912

Keywords:

Decision archetypes, Information Technology Governance, Information and Communication Technology, Small and medium-sized enterprises, Decision-making process.

Abstract

Objective: To understand and analyze the configuration of the decision archetypes proposed by Weill and Ross (2004) in the context of Small and Medium Enterprises (SMEs). The study is justified by the increased organizational dependence on Information and Communication Technologies (ICT) and their high costs, which requires a close alignment between business strategies and the adoption of these technologies. Methodology/Approach: Qualitative approach, under an inductive logic; and data collected through semi-structured, in-depth interviews involving five owner-managers of ICT service providers and 16 directors/managers of Information Technology (IT), in SMEs. Findings: It was observed that SMEs have characteristics that facilitate the integration between business and IT, with the prevalence of the duopoly decision archetype. The greater concentration of power in the owner-manager or the absence of structural power of the key IT professional in these companies can, however, favor federalism or monarchy archetypes, influencing misaligned decisions between IT and business. Theoretical/methodological contributions: The study findings suggest that, in the organizational structures of SMEs, there are key IT professionals with decision-making power, to be backed up by metrics based on quantitative aspects, supported by business intelligence systems and the empirical knowledge of those involved in the process. Relevance/Originality: By proposing mechanisms for configuring decision archetypes in Information Technology Governance (ITG) in SMEs, this study contributes significantly to the advancement of this theme, still incipient in the literature, as well as supporting new research.

JEL CODE: M15, M10, G30, L86, D80

Downloads

Download data is not yet available.

Author Biographies

Rodrigo Franklin Frogeri, Research Department, University Center of the South of Minas, UNIS, Varginha, MG, Brazil.

Rodrigo Franklin Frogeri é professor do Programa de Pós-Graduação em Gestão e Desenvolvimento Regional do Centro Universitário do Sul de Minas, UNIS. Possui doutorado em Sistemas de Informação e Gestão do Conhecimento, mestrado em Administração e bacharelado em Ciência da Computação. Suas áreas de interesse incluem a Governança de TI em PMEs, Ambidestria Organizacional, Adoção de TI e Gestão do Conhecimento. Seus artigos vêm sendo publicados no Journal of Aerospace Technology and Management, International Journal of Human Capital and Information Technology Professionals, RISTI (PORTO), NAVUS Revista de Gestão e Tecnologia, International Journal on IT/Business Alignment and Governance, entre outras revistas.

   

Daniel Jardim Pardini, Graduate Program in Information Systems and Knowledge Management, FUMEC University, Belo Horizonte, MG, Brazil.

Daniel Jardim Pardini é professor e membro do Colegiado dos Programas de Doutoramento e Mestrado em Administração da FACE-FUMEC e dos Programas de Doutoramento e Mestrado em Sistemas de Informação e Gestão do Conhecimento da Universidade FUMEC. Foi criador e coordenador destes dois Programas Stricto Sensu no projeto que elevou a FUMEC ao título de Universidade. É doutor em Administração pela Universidade CEPEAD-UFMG-Birmingham (doutoramento em sanduíche com bolsa CAPES, 2004), Mestre em Administração Pública pela Fundação João Pinheiro (1998), Bacharel em Administração pela Una-União de Negócios e Administração (1988). As suas áreas de interesse incluem estratégia, gestão de sistemas de informação, aprendizagem inter-organizacional, empreendedorismo, governação empresarial, fusões e aquisições, e temas de fronteira (corrupção, segurança, gestão de catástrofes, redes sociais tecnológicas, processos de decisão orçamental contemporâneos). Os seus artigos foram publicados no Social Responsibility Journal, International Journal of Human Capital and Information Technology Professionals, Revista Gestão & Tecnologia, entre outros periódicos.

Ana Maria Pereira Cardoso, Graduate Program in Information Systems and Knowledge Management, FUMEC University, Belo Horizonte, MG, Brazil.

Ana Maria Pereira Cardoso is a professor and researcher in the Graduate Program in Information Systems and Knowledge Management at the University FUMEC (2014-2020) where she integrated the Laboratory of Access to Information and Knowledge - LAIC (www.laic.org.br). She has graduated in Librarianship at the Federal University of Minas Gerais (1969), with a master's degree in the same area and institution (1981) and a doctorate in Sciences/Communication from the University of São Paulo (1990). His areas of interest include outcomes and influences of information and communication technologies in society, encompassing social informatics - informatics and education - digital culture and citizenship - social networks - informational literacy and inclusion. His articles have been published in Behaviour & Information Technology, Informação & Sociedade (UFPB. ONLINE), Transinformação, Datagrama Zero, among other journals.

Pedro dos Santos Portugal Júnior, Research Department, University Center of the South of Minas, UNIS, Varginha, MG, Brazil.

Pedro dos Santos Portugal Júnior is a Professor of the Graduate Program in Management and Regional Development at the Centro Universitário do Sul de Minas, UNIS. He has a Ph.D. (2016) and Master's (2012) in Economic Development from the Institute of Economics at Unicamp focusing on the line of Economics of the Environment. He has a Postdoctoral (2018) by the Postdoctoral Researcher Program (PPPD) of the Institute of Economics at Unicamp. His areas of interest include Regional Management and Economic Development, and Organizational Ambidexterity. His articles have been published in Colóquio - Revista do Desenvolvimento Regional, Revista Brasileira de Desenvolvimento Regional, RISUS - Journal on Innovation and Sustainability, NAVUS - Revista de Gestão e Tecnologia, among other journals.

 

References

Bergeron, F., Croteau, A.-M., Uwizeyemungu, S., & Raymond, L. (2017). A Framework for Research on Information Technology Governance in SMEs. In S. De Haes, & & W. Van Grembergen, W. (Eds.), Strategic IT Governance and Alignment in Business Settings (Chapter 3, pp. 53-81). Hershey, PA: IGI Global. https://doi.org/10.4018/978-1-5225-0861-8.ch003

Boynton, A. C., Jacobs, G. C., & Zmud, R. W. (1992). Whose responsibility is IT Management? Sloan Management Review, 2(3), 32-38.

Bradley, R. V., Byrd, T. A., Pridmore, J. L., Thrasher, E., Pratt, R. M. E., & Mbarika, V. W. A. (2012). An empirical examination of antecedents and consequences of IT governance in US hospitals. Journal of Information Technology, 27(2), 156-177. https://doi.org/10.1057/jit.2012.3

Clarkson, M. B. E. (1995). A Stakeholder Framework for Analyzing and Evaluating Corporate Social Performance. Academy of Management Review, 20(1), 92-117. https://doi.org/10.2307/258888

Dale Stoel, M., & Muhanna, W. A. (2009). IT capabilities and firm performance: A contingency analysis of the role of industry and IT capability type. Information and Management, 46(3), 181-189. https://doi.org/10.1016/j.im.2008.10.002

De Haes, S., & Grembergen, W. Van. (2004). IT Governance and its Mechanisms. Information Systems Control Journal, 1, 27-33. https://blog.dinamika.ac.id/erwin/files/2013/02/jpdf041-ITGovernanceandIts.pdf

Devos, J., Landeghem, H. Van, & Deschoolmeester, D. (2009). IT Governance in SMEs: Trust or control? In G. Dhillon, B. C. Stahl, & R. Baskerville (Eds.), Information Systems – Creativity and Innovation in Small and Medium-Sized Enterprises (pp. 135–149). Heidelberg, Berlin: Springer-Verlag https://doi.org/10.1007/978-3-642-02388-0_10

Devos, J., Van Landeghem, H., & Deschoolmeester, D. (2012). Rethinking IT governance for SMEs. Industrial Management & Data Systems, 112(2), 206-223. https://doi.org/10.1108/02635571211204263

DiMaggio, P. J., & Powell, W. W. (2000). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. In J. A. C. Baum, & F. Dobbin (Eds.), Economics Meets Sociology in Strategic Management (Advances in Strategic Management, Vol. 17, pp. 143-166). Bingley, UK: Emerald Group Publishing Limited.

Donaldson, T., & Preston, L. E. (1995). The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications. The Academy of Management Review, 20(1), 65-91. https://doi.org/10.5465/AMR.1995.9503271992

Fernandes, A. A., & Abreu, V. F. de. (2014). Implantando a Governança de TI – da Estratégia à Gestão dos Processos e Serviços. São Paulo: Brasport.

Fontanella, B. J. B., Luchesi, B. M., Saidel, M. G. B., Ricas, J., Turato, E. R., & Melo, D. G. (2012). Amostragem em pesquisas qualitativas: proposta de procedimentos para constatar saturação teórica. Cadernos de Saúde Pública, 27(2), 388-394. https://doi.org/10.1590/s0102-311x2011000200020

Frogeri, R. F., Pardini, D. J., Cardoso, A. M. P., Portugal Junior, P. dos S., Piurcosky, F. P., & Prado, L. Á. (2019). Rethinking the Concept of IT Governance: Interdisciplinary Reflections. International Journal of IT/Business Alignment and Governance, 10(2), 53-73. https://doi.org/10.4018/IJITBAG.2019070104

Frogeri, R. F., Pardini, D. J., Cardoso, A. M. P., Prado, L. Á., Piurcosky, F. P., & Portugal Junior, P. dos S. (2019b, nov.). Como as Literaturas de Adoção de TI e de Governança de TI Estão Associadas para Gerar Valor aos Negócios: reflexões no contexto de PMEs. Revista Ibérica de Sistemas e Tecnologias de Informação, (E24), 363-378. https://www.proquest.com/openview/b98bf8683869d7098e22b49813364c4f/1?pq-origsite=gscholar&cbl=1006393

Frogeri, R. F., Pardini, D. J., Cardoso, A. M. P., Prado, L. Á., Piurcosky, F. P., & Portugal Junior, P. dos S. (2019c). IT Governance in SMEs: The State of Art. International Journal of IT/Business Alignment and Governance, 10(1), 55-73. https://doi.org/10.4018/IJITBAG.2019010104

Frogeri, R. F., Pardini, D. J., Cardoso, A. M. P., Prado, L. Á., Piurcosky, F. P., & Portugal Júnior, P. dos S. (2020, mar.). Governança de TI em PMEs: proposta de um modelo teórico sob uma ótica interdisciplinar. Revista Ibérica de Sistemas e Tecnologias de Informação, (E27), 286-304. https://www.researchgate.net/profile/Rodrigo-Frogeri/publication/339612403_IT_governance_in_SMEs_proposal_of_a_theoretical_model_through_an_interdisciplinary_perspective/links/5e5bf779299bf1bdb84ab38d/IT-governance-in-SMEs-proposal-of-a-theoretical-model-through-an-interdisciplinary-perspective.pdf

Ghobakhloo, M., Hong, T. S., Sabouri, M. S., & Zulkifli, N. (2012). Strategies for Successful Information Technology Adoption in Small and Medium-sized Enterprises. Information, 3(4), 36-67. https://doi.org/10.3390/info3010036

Gibcus, P., Vermeulen, P. A. M., & Radulova, E. (2008). The decision-making entrepreneur: a literature review. In P. A. M. Vermeulen & P. L. Curseu (Eds.), Entrepreneurial strategic decision-making: a cognitive perspective (p. 245). Cheltenham, UK; Northampton, MA, USA: Edward Elgar.

Giotopoulos, I., Kontolaimou, A., Korra, E., & Tsakanikas, A. (2017, December). What drives ICT adoption by SMEs ? Evidence from a large-scale survey in Greece. Journal of Business Research, 81, 60-69. https://doi.org/10.1016/j.jbusres.2017.08.007

Guldentops, E. (2014). Governance of IT in Small and Medium Sized Enterprises. In . Devos, H. Van Landeghem, & D. Deschoolmeester, D. (Eds.), Information Systems for Small and Medium-sized Enterprises (p. 22). Heidelberg, Berlin: Springer-Verlag. https://doi.org/10.1007/978-3-642-38244-4

Henderson, J. C., & Venkatraman, N. (1993). Strategic Alignment: Leveraging Information Technology for Transforming Organizations. IBM Systems Journal, 32(1), 4-16. https://doi.org/10.1147/SJ.1999.5387096

Héroux, S., & Fortin, A. (2017). Exploring the influence of executive management diversity on IT governance. Journal of Information Systems and Technology Management, 14(3), 1-33. https://doi.org/10.4301/s1807-17752017000300007

Huang, R., Zmud, R. W., & Price, R. L. (2010). Influencing the effectiveness of IT governance practices through steering committees and communication policies. European Journal of Information Systems, 19(3), 288-302. https://doi.org/10.1057/ejis.2010.16

Huygh, T., & De Haes, S. (2016). Exploring the Research Domain of IT Governance in the SME Context. International Journal of IT/Business Alignment and Governance, 7(1), 20-35. https://doi.org/10.4018/IJITBAG.2016010102

Jacobson, D. D. (2009). Revisiting IT governance in the Light of Institutional Theory. In Proceedings of the Annual Hawaii International Conference on System Sciences, Big Island, HI, USA, 42. https://doi.org/10.1109/HICSS.2009.374

Jaeger-Neto, J. I., Luciano, E. M., & Becker, C. A. (2009). A percepção dos gestores de TI em relação às práticas de Governança de TI adotadas em empresas do Rio Grande Do Sul. Revista Eletrônica de Sistemas de Informação, 8(1), 1-18. https://doi.org/10.5329/RESI.2009.0801005

Jankelová, N. (2017). Strategic Decision Making and Its Importance in Small Corporations. In O. L. Emeagwali (Ed.), Corporate Governance and Strategic Decision Making (pp. 87-104). Rijeka, Croatoa: IntechOpen.

Leone, N. M. de C. P. G. (1991). A dimensao fisica das pequenas e médias empresas (P,M,E’S): À Procura de um critério homogeneizador. Revista de Administração de Empresas, 31(2), 53-59. https://doi.org/10.1590/S0034-75901991000200005

Luciano, E. M., Wiedenhoft, G. C., & Moron, M. A. M. (2015, May). What is in or out of a particular field of knowledge? Reflections on IT Governance Studies. Proceedings of the International Conference on Information Resources Management, 13. USA: AIS Electronic Library (AISeL). https://repositorio.pucrs.br/dspace/bitstream/10923/10034/2/What_is_In_or_Out_of_a_Particular_Field_of_Knowledge_Reflections_on_IT_Governance_Studies.pdf

Malterud, K., Siersma, V. D., & Guassora, A. D. (2016). Sample Size in Qualitative Interview Studies: Guided by Information Power. Qualitative Health Research, 26(13), 1753-1760. https://doi.org/10.1177/1049732315617444

Mendonça, C. M. C. de, Guerra, L. C. B., Souza Neto, M. V. de, & Araújo, A. G. de. (2013). Governança de tecnologia da informação: um estudo do processo decisório em organizações públicas e privadas. Revista de Administração Pública, 47(2), 443-468. https://doi.org/10.1590/S0034-76122013000200008

Messabia, N., & Elbekkali, A. (2010). Information Technology Governance: a Stakeholder Approach. Proceedings of the International Conference: An Enterprise Odyssey. Zagreb, Croatia: Faculty of Economics and Business, University of Zagreb. https://www.researchgate.net/profile/Nabil-Messabia/publication/254912191_Information_Technology_Governance_A_Stakeholder_Approach/links/5b72e5c192851ca6505d7ee5/Information-Technology-Governance-A-Stakeholder-Approach.pdf

Min, C., & Junhe, Y. (2009). The Pattern of IT Governance in Small and Medium-Sized Garment Enterprise. International Conference on Management and Service Science (pp. 1-4). Beijing, China: IEEE. https://doi.org/10.1109/ICMSS.2009.5304185

Minayo, M. C. de S., Assis, S. G. de, & Souza, E. R. (2005). Avaliação por triangulação de métodos: abordagem de programas sociais. Rio de Janeiro: Fiocruz.

Mitra, S., Sambamurthy, V., & Westerman, G. (2011). Measuring IT Performance and Communicating Value. MIS Quarterly, 10(1), 47-60. https://aisel.aisnet.org/misqe/vol10/iss1/6

Moraes, H. R. O. C. de, Cunha, M., & Terlizzi, M. A. (2017). IT indicators and organizational performance: a study of the retail sector in Brazil. Proceedings of the International Conference on Information Resources Management, 16. USA: AIS Electronic Library (AISeL). https://aisel.aisnet.org/cgi/viewcontent.cgi?article=1015&context=confirm2017

Neirotti, P., & Raguseo, E. (2017). On the contingent value of IT-based capabilities for the competitive advantage of SMEs: Mechanisms and empirical evidence. Information & Management, 54(2), 139-153. https://doi.org/10.1016/j.im.2016.05.004

Neirotti, P., Raguseo, E., & Paolucci, E. (2018). How SMEs develop ICT-based capabilities in response to their environment: past evidence and implications for the uptake of the new ICT paradigm. Journal of Enterprise Information Management, 31(1), 10-37. https://doi.org/10.1108/JEIM-09-2016-0158

Nfuka, E. N., & Rusu, L. (2011). The effect of critical success factors on IT governance performance. Industrial Management & Data Systems, 111(9), 1418-1448. https://doi.org/10.1108/02635571111182773

Nguyen, T. H. (2009). Information technology adoption in SMEs: an integrated framework. International Journal of Entrepreneurial Behavior & Research, 15(2), 162-186. https://doi.org/10.1108/13552550910944566

Nguyen, T. H., Newby, M., & Macaulay, M. J. (2015). Information technology adoption in small business: Confirmation of a proposed framework. Journal of Small Business Management, 53(1), 207-227. https://doi.org/10.1111/jsbm.12058

Oliveira, R. C. R. de. (2017). Adoção de Tecnologias da Informação em micro, pequenas e médias empresas: estudo a partir da adaptação do modelo Technology, Organization, and Environment (TOE) sob influência dos fatores institucionais (Tese de doutorado). Núcleo de Pós-graduação em Administração da Universidade Federal da Bahia (NPGA/UFBA), Universidade Federal da Bahia, Salvador, Bahia, Brasil. https://repositorio.ufba.br/bitstream/ri/24535/1/RODRIGO%20REIS.pdf

Olutoyin, O., & Flowerday, S. (2016). Successful IT governance in SMES: An application of the Technology – Organisation – Environment theory. South African Journal of Information Management, 18(1), 1-8. https://doi.org/10.4102/sajim.v18i1.696

Peterson, R. (2004). Crafting Information Technology governance. Information Systems Management, 21(4), 7-22. https://doi.org/10.1201/1078/44705.21.4.20040901/84183.2

Prasad, D. B. (2008, January). Content Analysis: A method in Social Science Research. In D. K. Das (Ed.), Research methods for Social Work (pp. 173-193). New Delhi: Rawat Publications. http://doi.org/10.13140/RG.2.1.1748.1448

Ribbers, P. M. A., Peterson, R. R., & Parker, M. M. (2002). Designing Information Technology Governance Processes: Diagnosing Contemporary Practices and Competing Theories. Proceedings of the Hawaii International Conference on System Sciences, Big Island, HI, USA, 35. https://doi.org/10.1109/HICSS.2002.994351

Saillard, E. K. (2011). Interpretive Analysis with Two CAQDAS Packages : NVivo and MAXQDA. Forum: Qualitative Sozialforschung, 12(1), 21.

Sambamurthy, V., & Zmud, R. W. (1999). Arrangements for information technology governance: A theory of multiple contingencies. MIS Quarterly, 23(2), 261–290. https://doi.org/10.2307/249754

Silva, H. C. C. da, Dornelas, J. S., Silveira, D. S. da, & Lucena, R. B. (2019). A Governança da Tecnologia da Informação e seus Mecanismos Formais e Informais: Proposição de um Framework para o Contexto de Empresas de Pequeno e Médio Porte. Revista de Empreendedorismo e Gestão de Pequenas Empresas, 8(3), 200-230. https://doi.org/10.14211/regepe.v8i3.1347

Silva, H. C. C. da, Silveira, D. S. da, Dornelas, J. S., & Ferreira, H. S. (2020). Information Technology Governance in Small and Medium Enterprises – a Systematic Mapping. Journal of Information Systems and Technology Management, 17, 1-14. https://doi.org/10.4301/S1807-1775202017001

Teodoro, A. N., Przeybilovicz, É., & Cunha, M. A. (2014). Governança de tecnologia da informação: uma investigação sobre a representação do conceito. Revista de Administração, 49(2), 307-321. Recuperado de https://www.sciencedirect.com/science/article/pii/S008021071630348X

Thomas, C. A. (2010). IT Governance in small and medium enterprises post Sarbanes Oxley (Thesis of doctorate degree). usiness Administration (Information Systems and Decision Sciences), Louisiana State University, Tennessee, USA.

Torrès, O., & Julien, P.-A. (2005). Specificity and Denaturing of Small Business. International Small Business Journal, 23(4), 355-377. https://doi.org/10.1177%2F0266242605054049

Visentini, M. S., Dill, R. P., & Dalcin, D. (2016). Processo decisório em Sistemas de Informação: um levantamento bibliográfico da produção científica nacional. Revista Sociais e Humanas, 29(1), 37-57. https://doi.org/10.5902/2317175821836

Weill, P., & Ross, J. (2004). IT Governance: How Top Performers Manage IT Decision Rights for Superior Results. Boston: Harvard Business Review Press.

Wilkin, C. L. (2012). The Role of IT Governance Practices in creating business value in SMEs. Journal of Organizational and End User Computing, 24(2), 1-17. https://doi.org/10.4018/joeuc.2012040101

Wilkin, C. L., & Chenhall, R. H. (2010). A Review of IT Governance: A Taxonomy to Inform Accounting Information Systems. Journal of Information Systems, 24(2), 107-146. https://doi.org/10.2308/jis.2010.24.2.107

Wilkin, C. L., Couchman, P. K., Sohal, A., & Zutshi, A. (2016). Exploring differences between smaller and large organizations’ corporate governance of information technology. International Journal of Accounting Information Systems, 22, 6-25. https://doi.org/10.1016/j.accinf.2016.07.002

Xue, L., Ray, G., & Sambamurthy, V. (2012). Efficiency or Innovation: How Do Industry Environments Moderate the Effects of Firms’ IT Asset Portfolios? MIS Quarterly, 36(2), 509-528. https://doi.org/10.2307/41703465

Xue, Y., Liang, H., & Boulton, W. R. (2008). Information Technology Governance in Information Technology Investment Decision Processes: The Impact of Investment Characteristics, External Environment, and Internal Context. MIS Quarterly, 32(1), 67-96. https://doi.org/10.2307/25148829

Published

2021-05-01

How to Cite

Frogeri, R. F., Pardini, D. J., Cardoso, A. M. P., & Portugal Júnior, P. dos S. (2021). Decision archetypes in information technology governance: Reflections in small and medium-sized enterprises. REGEPE Entrepreneurship and Small Business Journal, 10(2), e1912. https://doi.org/10.14211/regepe.e1912

Issue

Section

Research Articles