A Model of Effective IT Governance for Collaborative Networked Organizations

Inter-organizational collaboration based on the use of IT systems is now essential for organizations working as Collaborative Networked Organizations (CNOs). However, little research has been done to examine the critical success factors involved in shared IT governance among members of a CNO. Accordingly, this research develops a model of inter-organizational IT governance composed of critical success factors (CSFs) and key performance indicators (KPIs). The study defines fourteen CSFs that are classified under the main four categories of IT governance, which include strategic alignment, resource management, value delivery and risk management, and performance measurement. The main dimensions of the KPIs include consensus, alignment, accountability, trust, involvement and transparency. To validate the research model, we conduct a case study of a healthcare CNO by gathering insights from CNO participants on the importance of the proposed CSFs and performance indicators included. The findings of the research validate the importance of the CSFs but suggest that they could be ranked in order of criticality. In addition, certain CSFs were redefined based on the experience of CNO participants and questions were raised related to the context of the CNO, which influences participant perceptions, as well as to the degree of formalization noted in the CNO.