IT Governance for Dynamic Capabilities in Uncertain Environments: A Comparative Study of Firm Performance in Developing and Developed Economies
摘要
This study explores the influence of IT governance (ITG) mechanisms on strategic flexibility via dynamic capabilities (DC) and how these, in turn, enhance firm performance (FP) amid environmental uncertainty (EUN) in both developing and developed economies. The study employed partial least squares structural equation modeling (PLS-SEM) and fuzzy set qualitative comparative analysis (fsQCA) to examine data from 278 Brazilian and English enterprises in the products and services industries. The findings show that ITG mechanisms consistently enable strategic flexibility via DC across both economies, challenging assumptions about development-level differences. Moreover, the empirical findings also highlighted the influence of DC as a mediator in the relationship between ITG and FP. To further explore the impact of contingent factors, a fsQCA was conducted across clusters of countries. The analysis identified multiple equifinal combinations of ITG that influence dynamic capabilities, depending on EUN’s absence, presence, or core presence and firm characteristics, ultimately leading to improved FP. This empirical study offers valuable insights on service and manufacturing enterprises on implementing an ITG framework to build DC and enhance FP. It highlights how different organizational factors and combinations of EUN can be leveraged within emerging and developed economic contexts. The finding fills knowledge gaps in the literature on ITG and strategic flexibility.