Information technology governance by design: investigating hybrid configurations and integration mechanisms

This study aims to enrich and expand the conceptualization of IT governance by identifying the diversity of hybrid configurations and integration mechanisms and exploring the IT performance effects. While literature describes the prevailing configurations for formally allocating IT decision-making authority, previous studies have not addressed the complexity of hybrid configurations, the required integration mechanisms, and the associated performance effects. Building forth on organization theory, a conceptual framework is developed for conducting multiple comparative case study research in the financial services industry. The findings indicate that as companies experience increased uncertainty and complexity, and adopt multi-focused strategies, IT governance designs are more hybrid with increased coordination needs. A federal configuration for IT governance by itself is not related to improved IT performance. IT performance effectiveness is associated with both hybrid configuration and complex integration mechanisms. The implications for research and practice are discussed.