Board-level information technology governance and firm performance: evidence in Vietnam

Abstract

This paper aims to examine the change of firm performance of listed companies by considering the board-level influence of information technology governance. Furthermore, the moderating effect of transformational leadership is also considered in this study with Southeast Asian countries context. Currently, the board-level information technology governance of Vietnamese firms is not understood and its impact mechanism for performance has not been discovered. Therefore, this study aims to examine an antecedent and outcome of board-level information technology governance of Vietnamese firms. Specifically, the information technology risk is considered as the main antecedent factor and the firm performance is examined as the outcome in this context. Quantitative research methods are used with rigorous testing to determine the most accurate results and ensure reliability. Collected data is analyzed and corrected by SPSS, including descriptive statistics of variables, common method bias tests and nonresponse bias test. The partial least squares structural equation modeling is used to test and confirm the research hypotheses through Smart-PLS. Research results show that the information technology risk has a significant impact on board-level information technology governance. And board-level information technology governance has a positive effect on firm performance in the context of southern provinces in Vietnam. Lastly, transformational leadership positively moderates the relationship between board-level information technology governance and firm performance. Accompanying today’s outstanding technological development are ever-expanding technological risks. Managers need to focus the organization’s resources on these issues. It is necessary to motivate all members of the unit to change their attitude and consciousness in a positive direction to boldly apply new technology to work, all for the common goal of the organization.