Study On Motivation Factors For IT Governance

The information technology (IT) development of Chinese enterprises is in a rapid and puzzling stage, while the period is in conjunction with the construction adjustment of corporation governance. How to avoid the risk of IT progress, to align the useful IT strategy, to make suitable investment decision, became a critical challenge to Chinese enterprises while they are performing the IT activity. Most researches are still stay in the method or model proposition to avoid the IT risk and make proper IT decisions currently, while they ignore the most vigorously part in IT activity, the person, and the vital person in the enterprises is chief executive officer (manger). Manager has different interest with investor, so the investor should utilize certain motivation method, to maintain manger perform for the sake of investor.This thesis gives attention to both academic theory development and the realism application. It build the framework of IT governance and motivations in the IT governance, refer to principal-agent theory, asymmetric information theory, corporation governance theory, the motivation theory in economics and the motivation theory in management science, and set up several model to prove the necessary of the motivation in IT governance, and the importance of the spiritual motivation in IT governance. We also carry out an empirical study on the current stage of motivation practice in IT governance, we distinguish and categorize several motivation factors in IT governance effectively through interview and questionnaire, we analyze the motivation factors in IT governance and the factors which influence the effect of utilizing the motivation factors guided by the theory, that will assist investor to motivation managers effectively.The first contribution of this thesis is to redefine the concept of IT governance, formerly research on IT governance concentrate on the aspect of the IT strategy, the IT decision-making and the IT organization designs , this paper propose that IT governance is part of corporate governance, it is IT related decision making, motivation and restriction mechanism to work out the asymmetric information problem between shareholders and managers and to maximize IT revenue designed by shareholders-centered stakeholders. This paper also compare the differences among motivations in IT governance, corporation governance and IT management based on the IT governance theory. , indicate the new characteristics of motivations in IT governance. This paper then construct a necessary model of motivations in IT governance derived from asymmetry information theory, reveal motivation are at the central of IT governance.The second contribution of this thesis is to distinguish the facts that affect the IT governance, and analyze them the mutual relation. The research has not limited to the company governance which emphasis the material facts, This paper extends the bound of motivation in IT governance; add many factors which influence the incentive effect by the viewpoint of contingency. Furthermore it proved spiritual motivation has more significant effect than material motivation in some circumstance. We recognize 32 motivation method and 28 factors that influence the effect of motivation in IT governance by literature review, interview and questionnaire, which draw the whole picture of motivation in IT governance. data was collected from 114 general manager in Wuhan, China, we use structural equation modeling convince rewards motivations, residual rights motivations, reputation motivations, achievement motivation, restriction motivations have significant impact to the overall motivations in IT governance, these will exert important function to guide company to practice their motivation activity in IT governance.The third contribution of this thesis is to propose the evaluation method of the performance of IT governance which is a difficult problem; the former appraisal system is complex and not easy to operate. The paper propose that the performance of IT governance evaluation can be determined by corporate governance, the level of information accompany with a time lag factor, we give the formula as "Performance of IT governance evaluation = F (corporate governance evaluation, evaluation of the level of information, time),"The reason is the evaluation of corporate governance and the evaluation of the level of information are relative maturity and integrity, it is easier to find suitable criterion; IT governance and corporate governance positive correlation; The effect of IT governance can be measured by the level information. The effectiveness and validation of IT governance evaluation system is proved in the empirical study.Finally, this thesis discusses the main contribution of our research work and provides some possible future extensions.