Developing a Framework for Assessing IT Competences of Boards of Directors: A Malaysian Case Study

Abstract

Information technology (IT) systems are becoming increasingly indispensable for organizations in their daily operations. Organizations therefore invest considerable capital in IT assets to support the IT needs of employees and other stakeholders. As the contemporary global business environment becomes increasingly reliant on IT, the need for IT to be governed effectively and efficiently grows. Boards of Directors (Boards) play a critical role in the governance of organizations, yet despite the continued call for improved IT governance (ITG), there has been little research into how Boards actually govern IT. Current research appears to indicate that Boards struggle to understand the state of IT within their companies and/or they lack appropriate IT competences in examining IT issues. This study developed a model of IT competences that Boards should have, to achieve an appropriate standard of ITG. The model is developed from a review of IT competence frameworks in three domains, namely IT organizations/associations, professional accounting associations and academic research. A review of current critical IT issues is also undertaken from the extant literature and the model is adjusted to incorporate these specific issues.