Summary of finding

Based on previous IT governance determinants researches and organizational culture researches, this study developed a research model that incorporates IT governance determinants, IT governance arrangement on IT decision area and cultural outcome. This study adopted interview and survey approach to gather data, and total of 24 survey cases are collected. All variables are standardized by using PLS. For the hypotheses validation, simple regression and ANOVA analysis is conducted.

The results showed that exploitation, business governance decentralization, information intensity, environment instability influenced various IT decisions governance centralization and the cultural factors for innovation capability influenced by IT architecture and business application needs. The detail list of hypothesis result showed in Table 27.

Business governance decentralization affected IT principle decision area. This implies that the decision on high-level IT vision setting is depends on the business governance structure.

Environment instability affected IT architecture and business application needs. This implies more turbulent environment promotes participations of lower level decision makers in decision making process. The increasing participation on IT architecture from lower area is helpful for improving the

responsiveness to the external environment. Information intensity induced decentralized business application needs. This result implies that the greater information intensity gives power to the owners of process regarding on business unit related to the IT application decisions, due to their specific knowledge.

Business application needs promoted support and collaboration.

Business application needs handle business unit related IT decision. Higher decentralization on this IT decision increases business application isolation among the business units. This could increase support and collaboration culture because whenever a department wants to utilizes other department’s business application, they need support and collaboration from the department.

Decentralized IT architecture arrangement promoted participative decision-making scale and absorptive capacity.

This decision area covers various sets of rules and policies regarding information. The decentralized arrangement on this area means participative lower level decision maker on overall policy, process and rules. It naturally promotes participative decision making scale.

Lastly, the influence of various company profile variable to IT governance is observed. As expected the result suggests that bigger and older organization tends to have more decentralized governance form on IT investment area.

Table 27. The result of hypotheses validation No. Result Hypotheses

H1a Not supported

Exploitation positively influences IT principle governance arrangement centralization.

H1b Not supported

Exploitation positively influences IT architecture governance arrangement centralization.

H1c Not supported

Exploitation positively influences IT infrastructure governance arrangement centralization.

H1d Not supported

Exploitation positively influences Business application needs governance arrangement centralization.

H1e Not supported

Exploitation positively influences IT investments governance arrangement centralization.

H2a Supported Business governance decentralization negatively influences IT principle governance arrangement centralization.

H2b Not supported

Business governance decentralization negatively influences IT architecture governance arrangement centralization.

H2c Not supported

Business governance decentralization negatively influences IT infrastructure governance arrangement centralization.

H2d Not supported

Business governance decentralization negatively influences Business application needs governance arrangement centralization.

H2e Not supported

Business governance decentralization negatively influences IT investments governance arrangement centralization.

H3a Not supported

Information intensity negatively influences IT principle governance arrangement centralization.

H3b Not supported

Information intensity negatively influences IT architecture governance arrangement centralization.

H3c Not supported

Information intensity negatively influences IT infrastructure governance arrangement centralization.

H3d Partially Supported

Information intensity negatively influences Business application needs governance arrangement centralization.

H3e Not supported

Information intensity negatively influences IT investments governance arrangement centralization.

H4a Not supported

Environment instability negatively influences IT principle governance arrangement centralization.

H4b Supported Environment instability negatively influences IT architecture governance arrangement centralization.

H4c Not supported

Environment instability negatively influences IT infrastructure governance arrangement centralization.

H4d Supported Environment instability negatively influences Business application needs governance arrangement centralization.

H4e Not supported

Environment instability negatively influences IT investments governance arrangement centralization.

H5a Not supported

Business competency negatively influences IT principle governance arrangement centralization.

H5b Not supported

Business competency negatively influences IT architecture governance arrangement centralization.

H5c Not supported

Business competency negatively influences IT infrastructure governance arrangement centralization.

H5d Not supported

Business competency negatively influences Business application needs governance arrangement centralization.

H5e Not supported

Business competency negatively influences IT investments governance arrangement centralization.

H6a Not supported

IT principle governance arrangement centralization negatively influences Learning and development culture H6b Not

supported

IT architecture governance arrangement centralization negatively influences Learning and development culture H6c Not

supported

IT infrastructure governance arrangement centralization negatively influences Learning and development culture H6d Not

supported

Business application needs governance arrangement centralization negatively influences Learning and development culture

H6e Not IT investments governance arrangement centralization

supported negatively influences Learning and development culture H7a Not

supported

IT Principle governance arrangement centralization negatively influences Support and collaboration culture H7b Not

supported

IT architecture governance arrangement centralization negatively influences Support and collaboration culture H7c Not

supported

IT infrastructure governance arrangement centralization negatively influences Support and collaboration culture H7d Supported Business application needs governance arrangement

negatively influences Support and collaboration culture H7e Not

supported

IT investments governance arrangement centralization negatively influences Support and collaboration culture H8a Not

supported

IT principle governance arrangement centralization positively influences Power no-sharing culture

H8b Not supported

IT architecture governance arrangement centralization positively influences Power no-sharing culture

H8c Not supported

IT infrastructure governance arrangement centralization positively influences Power no-sharing culture

H8d Not supported

Business application needs governance arrangement centralization positively influences Power no-sharing culture

H8e Not supported

IT investments governance arrangement centralization positively influences Power no-sharing culture

H9a Not supported

IT principle governance arrangement centralization negatively influences Participative Decision-Making Scale H9b Supported IT architecture governance arrangement centralization

negatively influences Participative Decision-Making Scale.

H9c Not supported

IT infrastructure governance arrangement centralization negatively influences Participative Decision-Making Scale H9d Not

supported

Business application needs governance arrangement centralization negatively influences Participative Decision-Making Scale

H9e Not supported

IT investments governance arrangement centralization negatively influences Participative Decision-Making Scale H10a Not IT principle governance arrangement centralization

supported negatively influences Absorptive capacity

H10b Supported IT architecture governance arrangement centralization negatively influences Absorptive capacity

H10c Not supported

IT infrastructure governance arrangement centralization negatively influences Absorptive capacity

H10d Not supported

Business application needs governance arrangement centralization negatively influences Absorptive capacity H10e Not

supported

IT investments governance arrangement centralization negatively influences Absorptive capacity

H11a Partially supported

IT governance arrangement patterns are different by IT governance determinant constructs

H11b Partially supported

organization’s cultural characteristics patterns are different by IT governance arrangements