The Determinants Of It Governance Effectiveness And Its Impact On The Company Performance Of State-Owned Enterprises In Indonesia

Abstract

The alignment between business and IT has become an important topic amongst company’s top
management, and yet it has become a mandatory requirement in any organization, particularly in the stateownedenterprise companies in Indonesia. This alignment is expected to give an impact to the company
performance, particularly to the company profitability ratio. The IT governance plays an important role in
the alignment context, and it has become more important since the government obliges all stateownedenterprise to implement the IT governance as part of their good corporate governance practice. This
study examines the empirical influence of the individual IT governance determinant: roles of IT steering
committee, IT human resources, and roles of business stakeholders to the organization performance of the
state-ownedenterprises in Indonesia. This study found that each determinant have a strong influence on the
Effectiveness of IT Governance, and it affects the company performance, particularly to the company’s
profitability ratio.