It Governance in China

IT GOVERNANCE IN CHINA: CULTRAL FIT AND IT

GOVERNANCE CAPABILITIES

Xijin Zhong, Faculty of Business and Economics, Macquarie University, Sydney, NSW,

Australia, xijin.zhong@mq.edu.au

Savanid Vatanasakdakul, Faculty of Business and Economics, Macquarie University,

Sydney, NSW, Australia, savanid.vatanasakdakul@mq.edu.au

Chadi Aoun, Faculty of Engineering and Information Technology, University of

Technology, Sydney, Sydney, NSW, Australia, chadi.aoun@uts.edu.au

Abstract

Despite the researchers’ and practitioners’ enthusiasm for the global diffusion of information

technology governance (ITG) concept and frameworks, there is a general lack of cultural

awareness in ITG research. This paper examines both whether Chinese culture influences the

performance ITG capabilities in organizations and how this influence is manifested. An analytical

framework rooted in contingency theory is used in this paper to examine the fit (i.e.,

complementarity or conflicting) between ITG capabilities and Chinese cultural values. On the basis

of the dynamic nature of cultural values, this paper proposes four conditions that are expected to

compensate existing conflicts. These conditions are: a firm’s dependency on Confucian

entrepreneurship; social reputation; and shared goals; as well as its exposure to international

business environment. The authors also bridge general cultural dimensions and indigenous

Chinese culture values, which enables a cross-cultural comparison to be made. By exploring the

potential influences of national culture on ITG, this paper contributes to the contextualization of

ITG and benefits the cross-country transfer of ITG concepts and practices.

Keywords: IT governance, capabilities, Chinese culture, contingency theory

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INTRODUCTION

Information Technology (IT) plays an undeniably essential role in today’s business world.

Increasing expenditures and investment costs associated with IT, along with the risk of failing to

achieve...