Abstract:
The research examines the impact of IT governance on business-IT alignment and IT
investment performance to achieve firm business value. IT investment is a essential
part of a system of interrelated firm resources where the level of IT business value
depends on the degree of systems fit or misfit. This study drawn on the related literature
in IT governance, IT investment performance, business-IT alignment and firm business
value. The sample of 34 commercial banks and telecommunication companies in Sri
Lanka participated in this study. Accordingly, the findings of this study proved the
proposed hypotheses are supported except hypothesis 3. Accordingly, the first
hypothesis proved that the IT governance facilitates to create better business - IT
alignment. The second hypothesis proved that the IT governance practices create
improved IT investment performance for businesses. The fourth hypothesis confirmed
that the IT investment performance create firm business value. In contrary to the
expectation, the third hypothesis that the business IT alignment and firm business value
failed to support. The implications are also suggested from this study finding.
