Linking IT Governance to Organizational Performance in Higher Education: The Role of Digital Capability and Organizational Agility

Authors

  • Amrullah Amrullah STMIK Lombok, Indonesia
  • Khairul Imtihan STMIK Lombok, Indonesia
  • Baiq Yulia Fitriyani STMIK Lombok, Indonesia
  • Mardi STMIK Lombok, Indonesia
  • Muhamad Rodi STMIK Lombok, Indonesia
Pages Icon

DOI:

https://doi.org/10.63158/journalisi.v8i2.1581

Keywords:

IT Governance, Digital Capability, Organizational Agility, Organizational Performance, Higher Education

Abstract

This study examines how IT governance contributes to organizational performance through information systems (IS) success, digital capability, and organizational agility in higher education institutions. It addresses a critical gap by exploring why improvements in IT governance and system quality do not always translate into higher organizational capabilities and performance. A quantitative survey was conducted with 342 respondents from higher education institutions in Nusa Tenggara Barat (NTB), Indonesia, and analyzed using PLS-SEM. The results show that IT governance significantly improves system, information, and service quality. However, these dimensions do not significantly influence digital capability, and digital capability does not significantly affect organizational agility. Instead, organizational agility is the only construct that significantly enhances organizational performance, while IT governance shows no direct effect. These findings suggest that IT value creation is not linear but depends on the organization’s ability to translate technological resources into adaptive capabilities. This study provides empirical evidence on the indirect role of IT governance and offers a contextual clarification of IS success and digital capability relationships within NTB higher education institutions.

Downloads

Download data is not yet available.

References

[1] A. Joshi, J. Benitez, T. Huygh, L. Ruiz, and S. De Haes, “Impact of IT governance process capability on business performance: Theory and empirical evidence,” Decis. Support Syst., vol. 153, p. 113668, 2022, doi: 10.1016/j.dss.2021.113668.

[2] B. Wu, Y. Gong, H. Zheng, Y. Zhang, J. Huang, and J. Xu, “Enterprise cloud resource optimization and management based on cloud operations,” Applied and Computational Engineering, vol. 67, pp. 8–14, 2024, doi: 10.54254/2755-2721/67/20240667.

[3] A. Y. Alodat, Z. Salleh, H. A. Hashim, and F. Sulong, “Corporate governance and firm performance: empirical evidence from Jordan,” Journal of Financial Reporting and Accounting, vol. 20, no. 5, pp. 866–896, 2022, doi: 10.1108/JFRA-12-2020-0361.

[4] G. Danilov, “The impact of corporate governance on firm performance: panel data evidence from S&P 500 Information Technology,” Future Business Journal, vol. 10, no. 1, p. 86, 2024, doi: 10.1186/s43093-024-00376-8.

[5] A. Al-Surmi, M. Bashiri, and I. Koliousis, “AI based decision making: combining strategies to improve operational performance,” Int. J. Prod. Res., vol. 60, no. 14, pp. 4464–4486, 2022, doi: 10.1080/00207543.2021.1966540.

[6] F. Olan, E. O. Arakpogun, J. Suklan, F. Nakpodia, N. Damij, and U. Jayawickrama, “Artificial intelligence and knowledge sharing: Contributing factors to organizational performance,” J. Bus. Res., vol. 145, pp. 605–615, 2022, doi: 10.1016/j.jbusres.2022.03.008.

[7] M. Y. Alduaij, M. A. Alterkait, and S. Alainati, “Using the Delone and McLean success model to evaluate moodle’s information system success,” Engineering, Technology & Applied Science Research, vol. 14, no. 4, pp. 15008–15015, 2024, doi: 10.48084/etasr.7300.

[8] W. M. Al-Rahmi et al., “Validation of an Integrated IS Success Model in the Study of E‐Government,” Mobile Information Systems, vol. 2022, no. 1, p. 8909724, 2022, doi: 10.1155/2022/8909724.

[9] Y. Yang, Y. Xiao, and T. Li, “A survey of autonomous underwater vehicle formation: Performance, formation control, and communication capability,” IEEE Communications Surveys & Tutorials, vol. 23, no. 2, pp. 815–841, 2021, doi: 10.1109/COMST.2021.3059998.

[10] Y. Li and J. Wang, “Evaluating the impact of information system quality on continuance intention toward cloud financial information system,” Front. Psychol., vol. 12, p. 713353, 2021, doi: 10.3389/fpsyg.2021.713353.

[11] K. P. Fadahunsi et al., “Information quality frameworks for digital health technologies: systematic review,” J. Med. Internet Res., vol. 23, no. 5, pp. e23479–e23479, 2021, doi: 10.2196/23479.

[12] A. Demir, L. Maroof, N. U. Sabbah Khan, and B. J. Ali, “The role of E-service quality in shaping online meeting platforms: a case study from higher education sector,” Journal of Applied Research in Higher Education, vol. 13, no. 5, pp. 1436–1463, 2021, doi: 10.1108/JARHE-08-2020-0253.

[13] K. Agustian, A. Pohan, A. Zen, W. Wiwin, and A. J. Malik, “Human resource management strategies in achieving competitive advantage in business administration,” Journal of Contemporary Administration and Management (ADMAN), vol. 1, no. 2, pp. 108–117, 2023, doi: 10.61100/adman.v1i2.53.

[14] M. Tutak and J. Brodny, “Business digital maturity in Europe and its implication for open innovation,” Journal of Open Innovation: Technology, Market, and Complexity, vol. 8, no. 1, p. 27, 2022, doi: 10.3390/joitmc8010027.

[15] M. Nasiri, M. Saunila, and J. Ukko, “Digital orientation, digital maturity, and digital intensity: determinants of financial success in digital transformation settings,” International Journal of Operations & Production Management, vol. 42, no. 13, pp. 274–298, 2022, doi: 10.1108/IJOPM-09-2021-0616.

[16] M. Nasiri, M. Saunila, J. Ukko, T. Rantala, and H. Rantanen, “Shaping digital innovation via digital-related capabilities,” Information Systems Frontiers, vol. 25, no. 3, pp. 1063–1080, 2023, doi: 10.1007/s10796-020-10089-2.

[17] J. Benitez, A. Arenas, A. Castillo, and J. Esteves, “Impact of digital leadership capability on innovation performance: The role of platform digitization capability,” Information & Management, vol. 59, no. 2, p. 103590, 2022, doi: 10.1016/j.im.2022.103590.

[18] H. Mao, Y. Gong, and R. Titah, “Understanding the relationship between IT capabilities and operational agility: a multi-method approach,” Journal of Enterprise Information Management, vol. 36, no. 2, pp. 409–436, 2023, doi: 10.1108/JEIM-12-2021-0521.

[19] A.-T. Walter, “Organizational agility: ill-defined and somewhat confusing? A systematic literature review and conceptualization,” Management Review Quarterly, vol. 71, no. 2, pp. 343–391, 2021, doi: 10.1007/s11301-020-00186-6.

[20] Z. Çakmak, “Adapting to environmental change: The importance of organizational agility in the business landscape,” Florya Chronicles of Political Economy, vol. 9, no. 1, pp. 67–87, 2023.

[21] A. Ilmudeen, “Information technology (IT) governance and IT capability to realize firm performance: enabling role of agility and innovative capability,” Benchmarking: An International Journal, vol. 29, no. 4, pp. 1137–1161, 2022, doi: 10.1108/BIJ-02-2021-0069.

[22] A. Ilmudeen, “IT Governance mechanism and IT-enabled dynamic capabilities drives firm performance: An empirical study in Sri Lanka,” Information Development, vol. 40, no. 1, pp. 3–19, 2024, doi: 10.1177/02666669221074.

[23] I. M. Menshawy, R. Basiruddin, R. Mohdali, and N. Qahatan, “Board information technology governance mechanisms and firm performance among iraqi medium-sized enterprises: Do IT capabilities matter?,” Journal of Risk and Financial Management, vol. 15, no. 2, p. 72, 2022, doi: 10.3390/jrfm15020072.

[24] K. Imtihan, M. Rodi, W. Bagye, and B. Y. Fitriyani, “Integrating Technology Acceptance and Government Trust to Explain Public Engagement on Social Media: An IPMA-Based Study in Local E-Government Communication,” Applied Information System and Management (AISM), vol. 8, no. 2, pp. 245–256, 2025, doi: 10.15408/aism.v8i2.46660.

[25] M. A. Camilleri, “Using the balanced scorecard as a performance management tool in higher education,” Management in Education, vol. 35, no. 1, pp. 10–21, 2021, doi: 10.1177/0892020620921412.

[26] G. F. Frederico, J. A. Garza-Reyes, A. Kumar, and V. Kumar, “Performance measurement for supply chains in the Industry 4.0 era: a balanced scorecard approach,” International journal of productivity and performance management, vol. 70, no. 4, pp. 789–807, 2021, doi: 10.1108/IJPPM-08-2019-0400.

[27] R. Adyaputra, K. Imtihan, and M. Saleh, “Assessing User Satisfaction of Local Government Websites Through ISO 25010 and Technology Acceptance Model (TAM): A SmartPLS and IPMA-Based Study in Lombok Tengah,” Journal of Information and Organizational Sciences, vol. 49, no. 2, pp. 291–312, 2025, doi: 10.31341/jios.49.2.8.

[28] J. Hair and A. Alamer, “Partial Least Squares Structural Equation Modeling (PLS-SEM) in second language and education research: Guidelines using an applied example,” Research Methods in Applied Linguistics, vol. 1, no. 3, p. 100027, 2022, doi: https://doi.org/10.1016/j.rmal.2022.100027.

[29] G. Anwar and N. N. Abdullah, “The impact of Human resource management practice on Organizational performance,” International journal of Engineering, Business and Management (IJEBM), vol. 5, 2021, doi: 10.22161/ijebm.5.1.1.

[30] M. H. Karataş and H. Çakır, “A systematic literature review on it governance mechanisms and frameworks,” Journal of Learning and Teaching in Digital Age, vol. 9, no. 1, pp. 88–101, 2023, doi: 10.53850/joltida.1300262.

[31] L. Chen, H. Liu, Z. Zhou, M. Chen, and Y. Chen, “IT-business alignment, big data analytics capability, and strategic decision-making: Moderating roles of event criticality and disruption of COVID-19,” Decis. Support Syst., vol. 161, p. 113745, 2022, doi: 10.1016/j.dss.2022.113745.

[32] S. Ghosh, M. Hughes, I. Hodgkinson, and P. Hughes, “Digital transformation of industrial businesses: A dynamic capability approach,” Technovation, vol. 113, p. 102414, 2022, doi: 10.1016/j.technovation.2021.102414.

[33] C. Gong and V. Ribiere, “Understanding the role of organizational agility in the context of digital transformation: an integrative literature review,” VINE Journal of Information and Knowledge Management Systems, vol. 55, no. 2, pp. 351–378, 2025, doi: 10.1108/VJIKMS-09-2022-0312.

[34] V. Roy, T. Schoenherr, and J. Jayaram, “Digital enabled agility: Industry 4.0 unlocking real-time information processing, traceability, and visibility to unleash the next extent of agility,” Int. J. Prod. Res., vol. 62, no. 14, pp. 5127–5148, 2024, doi: 10.1080/00207543.2023.2284835.

[35] J. Motwani and A. Katatria, “Organization agility: a literature review and research agenda,” International Journal of Productivity and Performance Management, vol. 73, no. 9, pp. 2709–2754, 2024, doi: 10.1108/IJPPM-07-2023-0383.

[36] A. Buchwald, N. Urbach, and F. Ahlemann, “Business value through controlled IT: Toward an integrated model of IT governance success and its impact,” Journal of Information Technology, vol. 29, no. 2, pp. 128–147, 2014, doi: 10.1057/jit.2014.3.

[37] P. Mikalef, A. Pateli, and R. van de Wetering, “IT architecture flexibility and IT governance decentralisation as drivers of IT-enabled dynamic capabilities and competitive performance: The moderating effect of the external environment,” European Journal of Information Systems, vol. 30, no. 5, pp. 512–540, 2021, doi: 10.1080/0960085X.2020.1808541.

[38] T. Gruchmann, G. M. Stadtfeld, M. Thürer, and D. Ivanov, “Supply chain resilience as a system quality: survey-based evidence from multiple industries,” International Journal of Physical Distribution & Logistics Management, vol. 54, no. 1, pp. 92–117, 2024, doi: 10.1108/IJPDLM-06-2023-0203.

[39] R. Rupeika-Apoga, K. Petrovska, and L. Bule, “The effect of digital orientation and digital capability on digital transformation of SMEs during the COVID-19 pandemic,” Journal of Theoretical and Applied Electronic Commerce Research, vol. 17, no. 2, pp. 669–685, 2022, doi: 10.3390/jtaer17020035.

[40] D. Tortora, R. Chierici, M. F. Briamonte, and R. Tiscini, “‘I digitize so I exist’. Searching for critical capabilities affecting firms’ digital innovation,” J. Bus. Res., vol. 129, pp. 193–204, 2021, doi: 10.1016/j.jbusres.2021.02.048.

[41] D. Ellström, J. Holtström, E. Berg, and C. Josefsson, “Dynamic capabilities for digital transformation,” Journal of Strategy and Management, vol. 15, no. 2, pp. 272–286, 2022, doi: 10.1108/JSMA-04-2021-0089.

[42] M. H. G. Schneider, D. K. Kanbach, S. Kraus, and M. Dabić, “Transform me if you can: leveraging dynamic capabilities to manage digital transformation,” IEEE Trans. Eng. Manag., vol. 71, pp. 9094–9108, 2023, doi: 10.1109/TEM.2023.3319406.

[43] A. C. Yoshikuni, R. Dwivedi, J. E. R. Favaretto, and D. Zhou, “How enterprise information systems strategies-enabled strategy-making influences organizational agility: mediated role of IT-enabled dynamic capabilities in two BRICS countries study,” Journal of Enterprise Information Management, vol. 37, no. 1, pp. 230–258, 2024, doi: 10.1108/JEIM-06-2023-0275.

[44] K. Saeed, M. Malhotra, and S. Abdinnour, “Enhancing supply chain agility through information systems artifacts and process standardization: an empirical assessment,” Journal of Systems and Information Technology, vol. 26, no. 3, pp. 337–362, 2024, doi: 10.1108/JSIT-11-2023-0271.

Downloads

Published

2026-04-12

Issue

Vol. 8 No. 2 (2026): April

Section

Articles

License

Copyright (c) 2026 Journal of Information Systems and Informatics

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors Declaration

  1. The Authors certify that they have read, understood, and agreed to the Journal of Information Systems and Informatics (JournalISI) submission guidelines, policies, and submission declaration. The submission has been prepared using the provided template.
  2. The Authors certify that all authors have approved the publication of this manuscript and that there is no conflict of interest.
  3. The Authors confirm that the manuscript is their original work, has not received prior publication, is not under consideration for publication elsewhere, and has not been previously published.
  4. The Authors confirm that all authors listed on the title page have contributed significantly to the work, have read the manuscript, attest to the validity and legitimacy of the data and its interpretation, and agree to its submission.
  5. The Authors confirm that the manuscript is not copied from or plagiarized from any other published work.
  6. The Authors declare that the manuscript will not be submitted for publication in any other journal or magazine until a decision is made by the journal editors.
  7. If the manuscript is finally accepted for publication, the Authors confirm that they will either proceed with publication immediately or withdraw the manuscript in accordance with the journal’s withdrawal policies.
  8. The Authors agree that, upon publication of the manuscript in this journal, they transfer copyright or assign exclusive rights to the publisher, including commercial rights

How to Cite

[1]
A. Amrullah, K. Imtihan, B. Y. Fitriyani, Mardi, and M. Rodi, “Linking IT Governance to Organizational Performance in Higher Education: The Role of Digital Capability and Organizational Agility”, journalisi, vol. 8, no. 2, pp. 1843–1870, Apr. 2026, doi: 10.63158/journalisi.v8i2.1581.

Most read articles by the same author(s)