The Governance of Information Technology and Its Formal and Informal Mechanisms: Proposing a Framework for The Context of Small and Medium Enterprises

Abstract

Objective: To understand the phenomenon of IT governance in context of SMEs the agency theory. Method: Qualitative, descriptive research with data collection. Are used as complementary visions to the agency's vision: the relational contract theory, dealing with contracts between principal and agent, and contingency theory, dealing with the contingent factors that influence the choices of IT governance mechanisms. Originality/Relevance: Small and medium-sized enterprises (SMEs) are essential for economic development and represent an important part of job creation. However, there are several difficulties in governing this type of organization, among them investments in Information Technology (IT). IT governance, as part of corporate governance, aims to direct investments in this area, enabling its effective return. But the frameworks available in the literature were developed for the context of large companies, generating a theoretical vacuum when it comes to SMEs. Results: From the framework proposed by Peterson (2004), this theoretical essay proposed a framework that would be more appropriate to the reality of the SME. Theoretical/methodological contributions: The proposed framework seeks to enlarge the understanding of the IT governance phenomenon in the context of SMEs, opening the way for further theoretical and empirical analysis of the phenomenon.

Keywords

• IT Governance
• Small and Medium-Sized Enterprises
• Theory of the Agency
• Relationship Relational Theory
• Contingency Theory