ARTICLE

International Journal of Engineering Business Management

Perceived Effectiveness of Information

Technology Governance Initiatives
Among IT Practitioners
Regular Paper

Wil Ly Teo1,*, Azizah Abd Manaf1 and Phyllis Lai Fong Choong2
1 Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia
2 Multinational High-Tech Manufacturing Company, Malaysia
* Corresponding author E-mail: [email protected]

Received 15 March 2013; Accepted 20 May 2013

DOI: 10.5772/56661

© 2013 Teo et al.; licensee InTech. This is an open access article distributed under the terms of the Creative
Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,
distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract Information Technology (IT) governance has 1. Introduction

risen in importance in recent years, driven by various
trends in IT development. With rapid growth in the IT governance has risen in importance in recent years,
country and the globalization of the IT sector, there is becoming a priority in most organizations [1]. In the
growing interest in IT governance in Malaysia. This study information economy, intellectual assets, information and
aims to explore whether IT practitioners with different IT have become a strategic tool for competitive advantage
[2]. Although value creation of IT investments is
job functions, education levels, education areas of
increasingly recognized as providing an important
specialization, certifications and experience levels have
contribution to business, IT costs continue to rise [1] and
different perceptions of IT governance effectiveness in
have to be managed well.
their organization. The results reveal differences in
perceived IT governance effectiveness between different
Organizations are increasingly dependent on IT due to
job function groups, but not between groups with
the pervasive use of technology [3]. Business operations
different education levels, certification or experience are at risk due to exposure to threats to intellectual assets,
levels. The findings for education area of specialization information and IT from internal and external hackers,
are not conclusive. The findings of this study will help IT viruses, malware and phishing [4].
managers to identify areas of focus to maximize
effectiveness of IT governance initiatives through their IT As a part of overall corporate governance, IT has been
staff. The implications of the findings are discussed at the required to comply with tighter regulations for corporate
end of the paper. governance since the Enron and WorldCom scandals
(after, for example, the Sarbanes‐Oxley Act of 2002). IT as
Keywords Information Technology (IT) Governance, the custodian of data has to comply with more and more
Practitioner‐Centric Approach, Perceived IT Governance information and privacy‐related legislation, such as the
Effectiveness Malaysian Personal Data Protection Act of 2010.

www.intechopen.com Wil Ly Teo, Azizah Abd Manaf and Phyllis

Int. j. Lai
eng.Fong
bus.Choong:
manag.,Perceived
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of Information Technology Governance Initiatives Among IT Practitioners
 1.1 Rapid Growth and Globalization levels, education areas of specialization, certifications and
of the IT Sector in Malaysia experience levels have different perceptions of IT
governance effectiveness in their organization.
The IT sector in Malaysia is growing at a quick pace.
Based on the latest annual report from the Multimedia 2. Literature Review
Development Corporation [5], total revenue stands in
excess of RM 30 billion, the highest figure since the 2.1 Perceived IT Governance Effectiveness
financial crisis of 2008. The MDeC also reported a figure
Prior studies examining the effectiveness of IT
of RM 9.6 billion and 25% growth in the sector’s
governance have taken different approaches. These
contribution to Malaysia’s Gross Domestic Product
focused on structures, processes and relational
(GDP), compared to the previous year.
mechanisms [22], specific conditions under which these
mechanisms work [23], IT capabilities [24] and culture
The IT sector in Malaysia is also undergoing rapid
[25].
globalization. Exports grew by 9% to 10.12 billion, while
investments grew at 69.2% to RM 2.5 billion [5]. Based on
As the dependent factor, effectiveness of IT governance is
the Multimedia Super Corridor (MSC) company directory
measured by perceived effectiveness [26]. The prior
[6], there is one company of foreign origin for every two
studies that have been mentioned examine the issue from
Malaysian companies.
the organizational perspective. Assessing the issue from
1.2 Growing Interest in IT Governance in Malaysia the angle of IT practitioners gives another view.

Early published research on IT governance in Malaysia Weill and Ross [27] argue that the ultimate outcome of
began in the education sector [7, 8] and continues to be successful IT governance is the effective delivering of
explored [9]. In 2006 studies on electronics manufacturing four objectives: cost, growth, asset utilization and
companies, Tan, Eze and Teo [10] and Teo and Tan [11] business flexibility. This could be extended to the level of
conclude that adoption of IT governance is at an early individual IT practitioners, where perceived IT
stage, and that there is room for improvement in governance effectiveness is the outcome.
familiarity with the technicalities of IT governance
frameworks. 2.2 Job Function

IT governance standards and best practices for specific

IT governance research for Small and Medium
aspects of the IT function do exist; however, the specific
Enterprises (SMEs) in Malaysia has taken two different
nature of such regulations, standards and best practices
approaches: one approach attempts to generalize IT
imposes different extents of influence on the day‐to‐day
governance implementation in SMEs [12, 13], while the
work of the IT practitioner based on his/her job
other seeks to tailor IT governance frameworks to suit
function.
specific characteristics of SMEs [14, 15].

Examples of standards and best practices for IT

IT governance research in Malaysia continues to receive
governance include ISO/IEC 38500:2008 “Corporate
increasing interest (see, for example, [16‐21]).
governance of information technology” [28] and Control
1.3 Practitioner‐centric Approach to IT Governance Objectives for Information and Related Technology
(COBIT) [29]. In the area of IT service management, the IT
IT governance begins with the board but action happens Infrastructure Library (ITIL) is widely used [30] as well as
at the working level; this highlights the importance of IT ISO/IEC 20000, the international standard for IT service
practitioners in IT governance initiatives. This study management [31].
examines IT governance from the perspective of IT
practitioners. Dixon (2002) defines an IT practitioner as For project management, two popular project
“someone who designs, develops, operates, maintains, management best practices are Project Management Body
supports, services, and/or improves IT systems, in of Knowledge (PMBOK) [32] and Projects IN Controlled
support of end‐users of such systems”. Based on this Environments (PRINCE) [33]. For software development,
definition, various IT functions throughout an there is Capability Maturity Model Integration (CMMI)
Information System’s lifecycle fall within the scope of IT [34]. These are just several examples to highlight the
practitioners. These functions include strategy and variety of standards and best practices in IT.
planning, management and administration, development,
implementation, and service delivery. It is hypothesized that perceived IT governance
effectiveness differs among IT practitioners with different
The objective of this study is to explore whether IT job functions, relating for example to infrastructure,
practitioners with different job functions, education application, projects, or service.

2 Int. j. eng. bus. manag., 2013, Vol. 5, 19:2013 www.intechopen.com

H1: There is a difference in perceived IT governance 2.6 Experience Level
effectiveness between IT practitioners with different job
functions. IT practitioners are expected to bring knowledge and
skills with their related work experience. However,
2.3 Education Level previous studies have not found prior experience to have
as positive an impact as expected [35]. Research carried
Formal education provides foundational knowledge for out on call centre employees found that the effect of prior
IT practitioners. This foundational knowledge prepares related experience on task‐relevant knowledge and skills
them for a fast‐changing world with the ability to learn was overall less as expected [35].
new skills when needed. On the other hand, IT
governance initiatives in organizations require skills In anticipating whether experience level has an effect,
with specific strategies, objectives and processes. two issues are considered. Firstly, IT practitioners with IT
Therefore, it is hypothesized that education level does work experience do not necessarily have specific
not translate into differences in perceived IT governance experience in IT governance. Secondly, IT governance at
effectiveness. the organizational level is usually directed at specific
processes and procedures imposed on the IT
practitioners. This research covers IT practitioners in
H2: There is no difference between IT practitioners with
general; therefore, it is hypothesized that perceived IT
different education levels in terms of perceived IT governance
governance effectiveness does not differ between groups
effectiveness.
of IT practitioners with different levels of experience.
2.4 Education Area of Specialization
H5: There is no difference in perceived IT governance
In the previous section, it was hypothesised that effectiveness between IT practitioners with different experience
perceived IT governance effectiveness would not differ levels.
according to the education level of IT practitioners
3. Methodology
because formal education provides foundational
knowledge, whereas IT governance initiatives in 3.1 Population and Sample
organizations require specific skills. Consequently, it is
also hypothesised that area of specialization does not The sampling frame consists of IT practitioners in
differentiate perceived IT governance effectiveness Malaysia according to the definition by Dixon [36]. Due
among IT practitioners, either. to the limitation of not having a national registry of IT
practitioners, purposive sampling was used to solicit
H3: There is no difference in perceived IT governance potential respondents from Multimedia Super Corridor
effectiveness between IT practitioners with different education (MSC)‐status companies in Cyberjaya, Malaysia.
areas of specialization.
Eligible respondents received e‐mail invitations to the
2.5 Certification online survey website. Out of 198 invitations, 167 valid
responses were received, representing a response rate of
Certifications provide third‐party recognition that an IT
84%, which is very good (see [37]). The high response rate
practitioner is competent in the area of certification. These
was expected because respondents had agreed to
cover diverse functions in IT, for example IT governance‐
participate during survey sign‐up.
relevant functions such as project management, service
management and security management. Therefore, it is
Non‐response bias was checked based on the assumption
hypothesized that perceived IT governance effectiveness
that characteristics of non‐respondents were similar to
does not differ among IT practitioners according to
those of late respondents, as suggested by Armstrong and
certifications.
Overton [38]. An independent samples t‐test confirmed
that none of the demographics are statistically significant
IT practitioners are classified in groups: no certification at
(p > 0.05, two‐tail tests) thus suggesting that non‐response
all, certification which is not directly related to IT
bias may not exist.
governance, certification which is related to IT
governance (e.g., project management, service 3.2 Measurement Instrument
management and security management) or certifications
specific to IT governance. Perceptual measure of perceived IT governance
effectiveness was adapted from Weill and Ross [27]. The
H4: There is no difference in perceived IT governance questionnaire was designed with a five‐point Likert scale
effectiveness in relation to certification of IT practitioner. to measure the multi‐item constructs (1 = strongly

www.intechopen.com Wil Ly Teo, Azizah Abd Manaf and Phyllis Lai Fong Choong: Perceived Effectiveness 3
of Information Technology Governance Initiatives Among IT Practitioners
 disagree and 5 = strongly agree). The survey management as their job scope perceive that IT
questionnaire used is included in the appendix. governance initiatives in their organizations are more
effective compared to the other groups. Also, the
3.3 Respondent Profile relatively large standard deviations for application and
project management job function groups indicate
The respondent profile is shown in Table 1. The majority
variability in perceptions of IT governance effectiveness
of respondents have job functions in the area of
within these groups.
application and infrastructure. A small number of them
are in project management and service management. The
Similarly, respondents with non‐IT‐related majors
others have cross‐functional job functions.
reported a higher perceived IT governance effectiveness
compared to their counterparts with IT‐related majors.
Most respondents have a bachelor degree. They mainly
However, it should also be noted that the group with IT‐
studied IT and related majors, with only a small number
related majors has a relatively large standard deviation,
studying non‐IT related majors. The remainder had a
hence also indicating variability in perceived IT
mixed education background.
governance effectiveness within this group. In addition,
the group with IT‐related majors is much larger(145) than
Certification is relatively widespread, with nine of ten
the non‐IT‐related major (8) and mixed (14) groups.
respondents having one or more certifications. However,
IT governance certification is rare. More than half of
In contrast, the results of the independent‐sample
respondents have project management, service
Kruskal‐Wallis test are not significant for education level,
management or security certifications.
certification or experience level. The outcome of the
hypothesis testing is summarized in Table 3. Out of the
The respondents represent a relatively young IT
five hypotheses, three are supported while two are not.
workforce, with the majority within the ten‐year
experience band. Respondents with two to five years of 4. Discussion
work experience constitute the largest group, followed by
those in the five to ten years category. Overall, the The results show that there is a difference in perceived IT
different experience levels are adequately represented. governance effectiveness between IT practitioners with
different job functions. This is expected because there are
3.4 Results IT governance frameworks for specific aspects of IT,
imposing different extents of influence on IT
Analysis of Variance (ANOVA) is a parametric test used
practitioners’ jobs.
to test differences between two or more groups. When
assumptions of ANOVA are not met, the equivalent non‐
The hypothesis that the education level of IT practitioners
parametric test should be used. Kruskal‐Wallis is used for
does not matter in the perception of IT governance
comparing more than two samples that are independent.
effectiveness is also supported. Formal education only
provides foundational knowledge to IT practitioners,
In this research, Kolmogorov‐Smirnov with Lilliefors
which is not specific to IT governance.
Significance Correction and Shapiro‐Wilk are used for
testing normality. Based on the results shown in Table 1, As was hypothesized, there is no difference in perceived
none of the profiles or categories are normally distributed IT governance effectiveness between IT practitioners with
according to both Kolmogorov‐Smirnov and Shapiro‐ different levels of experience. This is expected, since IT
Wilk tests. Since assumptions of normality are not met, practitioners with work experience do not necessarily
the non‐parametric test should be used instead of have specific experience in IT governance. Furthermore,
ANOVA. IT governance initiatives are possibly specific to the
organizations they are currently operating in.
The significant results of the Kruskal‐Wallis test indicate
that at least one of the samples is different from the other The surprising finding is that perceived IT governance
samples. As shown in Table 2, the Kruskal‐Wallis test is effectiveness is far more differentiated by education area
significant for perceived IT governance effectiveness by of specialization than by certification. The group with
job function and education area of specialization. This non‐IT‐related majors showed higher perceived IT
indicates that at least one job function group is different governance effectiveness than the group with IT‐related
from the other groups. A similar outcome applies to majors. These results are inconclusive because the non‐IT‐
education area of specialization. related major group is insufficiently represented.
Furthermore, there is high variability in perceived IT
Based on the mean values of perceived IT governance in governance effectiveness within the group with IT‐related
Table 1, respondents with infrastructure and project majors.

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The next hypothesis was that perception of IT governance governance certifications), but there is high variability
effectiveness is differentiated by certification, but the among these respondents in perceived IT governance
results show that certification does not matter. More than effectiveness. This implies that a greater level of
half of the respondents possess one or more certification certification alone does not correlate with a higher
related to IT governance (such as project management, perception of IT governance effectiveness.
service management, security management or IT

Significance Standard
Per
Profile variable Category Frequency Kolmogorov‐ Shapiro‐ Mean Deviation
cent
Smirnov Wilk
Infrastructure 51 30.5 .000 .000 3.7794 .47076
Application 68 40.7 .000 .000 3.3713 .67951
Job function Project 17 10.2 .036 .005 3.7941 .73013
Service 20 12.0 .000 .001 3.2750 .42068
Mixed 11 6.6 .012 .002 3.5455 .47194
Diploma/Pre‐university 10 6.0 .020 .004 3.5250 .46323
Education level Bachelor 144 86.2 .000 .000 3.5243 .41000
Master 13 7.8 .000 .000 3.7115 .45468
IT‐related major 145 86.8 .000 .000 3.5017 .63703
Education area of
Non‐IT‐related major 8 4.8 .000 .000 3.9063 .26517
specialization
Mixed 14 8.4 .000 .000 3.7143 .46881
No certification 16 9.6 .118* .029 3.2813 .79517
No ITG, IT PM, SM or
Security certification, 58 34.7 .000 .000 3.4914 .63170
has other certifications
No ITG, ITG
Certification certification, has IT PM,
SM or Security 90 53.9 .000 .000 3.6278 .55870
certification, optionally
others
Has ITG certification,
3 1.8 .637* 3.1667 .76376
optionally others
Less than 1 year 13 7.8 .046 .017 3.6346 .60909
1‐2 years 28 16.8 .000 .000 3.3839 .82069
2‐5 years 58 34.7 .000 .000 3.5431 .51965
Level of experience
5‐10 years 47 28.1 .000 .000 3.5957 .62674
10‐20 years 17 10.2 .026 .003 3.6029 .58699
More than 20 years 4 2.4 .086* 3.3125 .47324
Notes:
1. Abbreviations used: ITG (IT Governance); PM (Project Management); SM (Service Management).
2. * p≥0.05 indicates normality is met.
3. Entries without Kolmogorov‐Smirnov statistics indicate that these are not calculated due to the small number of respondents in these categories.

Table 1. Respondent profile, normality, mean and standard deviation of perceived IT governance effectiveness for practitioner profiles

Decision on Null Hypothesis Findings Decision

Null Hypothesis Significance
Hypothesis There is difference between … of IT practitioners in perceived
The distribution of perceived IT governance effectiveness is the IT governance effectiveness.
same across categories of …
H1: Job function Difference Supported
Job function .001* Reject
Education level .382 Retain H2: Education level No difference Supported
Education area of .031* Reject H3: Education area of Difference Not supported
specialization specialization
Certification .342 Retain H4: Certification No difference Not supported
Experience level .956 Retain
H5: Experience level No difference Supported
Table 2. Results of independent‐sample Kruskal‐Wallis test
Table 3. Results of hypothesis testing

www.intechopen.com Wil Ly Teo, Azizah Abd Manaf and Phyllis Lai Fong Choong: Perceived Effectiveness 5
of Information Technology Governance Initiatives Among IT Practitioners
 4.1 Contribution About This Survey

This study presents an alternative view on IT governance. IT governance initiatives include a wide range of
It serves to bridge the gap between direction and processes and practices in the day‐to‐day delivery of IT
execution, helping to translate strategy into action. The services, including project management, IT operations
findings from this study help IT management to identify management and IT investment decisions. Significant
areas of focus to maximize effectiveness of IT governance research has been carried out to study the organizational
initiatives through their IT staff. and management aspects of IT governance. This survey is
intended to help us gain an insight into IT governance
4.2 Implications from the perspective of IT practitioners. It is structured in
five sections and will take approximately 20 minutes to
There are two implications to be considered. Firstly, since
complete.
IT practitioners with different education levels,
certifications and experience levels do not have different Target Respondents
levels of perceived IT governance effectiveness,
management should not give too much attention to these This survey is intended for IT practitioners (non‐
factors. However, the findings for education area of managerial level, i.e., main job function is not to manage
specialization are not conclusive. people) working full time (either permanent or contract)
at an MSC‐status company.
Secondly, IT practitioners with different job functions
reported different levels of perceived IT governance The job function of IT practitioners includes one or more
of the following activities for IT systems:
effectiveness. Although IT governance best practices have
different levels of impact on different job functions,
 Design
management guidance in the form of organizational
 Development
structures, processes, goals, reward system and learning
 Operation
and development could be considered to improve
 Maintenance
perceived IT governance effectiveness. Continuous  Support
commitment from management is needed. IT governance  Service
is usually a long and arduous journey. Without  Improvement
continuous commitment, such initiatives are not
sustainable. The scope of work of IT practitioners covers one or more
of the following IT functions throughout an Information
5. Limitations and Suggestions for Future Research
System lifecycle:
Since no register of IT practitioners is available in the
 Strategy & planning
population, purposive sampling was used, which is a
 Management & administration
non‐probability technique that limits generalizability.
 Development
 Implementation
This limitation is mitigated to some extent through the
 Service delivery.
representativeness of the sample, since the demographics
of the respondents are comparable to the workforce Statement of Confidentiality
demographics of MSC‐status companies. Caution should
be observed when generalizing these conclusions to Your response will be kept strictly confidential. Any form
apply to organizations with very different organizational of identification code is only used to ensure no duplicates
contexts to these MSC‐status organizations. in data collection.

This study only considers certain IT practitioner factors, I work in an MSC‐status company. My job function and
which are mainly demographic in nature. Future IT scope of work fulfil the definition of IT practitioner
governance research on IT practitioners could consider described above.
the characteristics of the practitioners themselves, as well
as management guidance factors. o Yes (start the survey now)
o No (decline participation in the survey)
6. Appendix: Survey Questionnaire
Section 1: Respondent profile
Note: Only questions which are relevant to this article are
included here. The complete survey questionnaire can be 1. With a sum of 10, please indicate your day‐to‐day job
obtained from the corresponding author. functional areas.

6 Int. j. eng. bus. manag., 2013, Vol. 5, 19:2013 www.intechopen.com

 Service desk/Helpdesk/Call centre __________ 4. If you possess IT certifications, please indicate here.
Server/database/network operation __________  Database/systems administration (e.g., MCSE,
Desktop support (e.g., PC, laptop, mobile devices) RHCE, MCDBA, OCP, VMware)
__________
Application operation/support __________  Software development (e.g., MCSD)
Software design and development __________  Network (e.g., CCNA, CCNP, CCIE)
Project management __________  Security (e.g., CISA)

2. What is your highest education level?  Application (e.g., SAP)

oHigh school/SPM  Project management (e.g., PMP, PRINCE2,
oDiploma/Pre‐university/STPM IPMA)
oBachelor  IT service management (e.g., ITIL)
oMaster degree
oDoctorate degree  IT auditing (e.g., CISA)
 IT governance (e.g., CGEIT)
3. What was your field of study at all previous education  Other
levels? Please indicate all applicable answers.
 Computer Science/Information 5. How long have you been working in IT‐related
Technology/Information Systems/Software fields?
Engineering (technical specialisation) oLess than 1 year
 Management Information Systems/Information o1‐2 years
Technology (business/management o2‐5 years
specialization) o5‐10 years
o10‐20 years
 Electrical/Electronics/Computer Engineering oMore than 20 years
 Engineering (Others)
 Business
 Mathematics/Statistics
 Other
Perceived IT governance effectiveness
I feel that IT governance in my organization has resulted in the following improvements.
Strongly Disagree Neutral Agree Strong
Disagree Agree
1. Cost‐effective use of IT     
2. Effective use of IT for growth     
3. Effective use of IT for asset utilization     
4. Effective use of IT for business flexibility     

Your anonymity is absolutely assured. Personal data is 6. References

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