Balancing Act: External Stakeholder Salience in IT Governance

Abstract

This study explores how IT executives prioritize external stakeholders based on their perceived salience in various IT governance decision domains. Through a combination of computed salience scores and content analysis of interviews, we uncover that the prioritization of external stakeholders varies significantly across IT strategic vision, architecture, investments, infrastructure, applications development, and outsourcing decisions. Key external groups investors and shareholders, compliance and external audit bodies, IT vendors, business customers, and joint ventures are examined for their influence, legitimacy, and urgency. Notably, investors and shareholders exert direct influence on strategic vision and investment decisions, while compliance bodies shape architecture and infrastructure governance. Conversely, IT vendors and joint ventures play pivotal roles in application development and outsourcing. The findings underscore the necessity for IT executives to manage these stakeholders proactively, anticipating conflicts, mitigating risks, and leveraging opportunities. This study lays the groundwork for deeper empirical inquiries, ultimately aiming to refine IT governance practices and enhance organizational performance.