Corporate Governance Framework

2. Literature Review

As IT becomes more important to organizations, new challenges naturally emerge in relation to its management. Recently, companies have been spending about 50% of all capital investment on IT (Maizlish & Handler, 2005), (Bloem et al., 2006); however, it has been very hard to see the real impact of these investments on organizational performance.

Although many organizations realize IT increasingly represents not only a significant expense but also one of their main organizational assets, decisions regarding IT adoption, implementation, and management are still complex and lot of money is wasted on bad IT acquisitions (Jeffery& Leliveld, 2004), (McAfee, 2004). According to Maizlish & Handler, (2005), 72% of IT projects

Thus, better understanding of corporate governance principle have high impact on well articulate the IT governance framework perform. The concept of Governance has several meanings.

Cutting, B. & Kouzmin (2001) presents the following generic meaning to the governance meaning:

• Governance is a system, pattern or structure of participants in such a way that they are a distinctive unit with some notion of a shared purpose.

• It roles played by the individual participants or elements and its applicable at each level of the individual, the group, organization or company, society or nation.

• In other words; It’s relate to the rule, management, regulation, direction, control or leadership of the affairs or participants of such

The pervasive use of technology has created a critical dependency on IT that calls for a specific focus on IT governance which been by the need for the transparency of enterprise risks and the protection of shareholder value (ITGI, 2003). Therefore, IT governance has been identified as an appropriate solution to deal with increasing IT changes and complexity.

Weil & Ross, (2004) introduced a widely used definition of IT governance as ‘specifying the decision rights and accountability framework to encourage the desirable behavior in the use of IT’. Similarly, IT Governance is the process by which firms align IT actions with their performance goals and assign accountability for those actions and their outcomes. In other words, they declared IT governance as dealing with the "distribution of IT decision-making rights and accountability framework for encouraging desirable behaviours’ in the use of IT. They focused on the implementation of structures and processes in an IT