Corporate Governance Strategy and Commitments

Question: Discuss about the Corporate Governance for Strategy and Commitments. Answer: Introduction: For a business venture to achieve success, appropriate information along with correct data is required (Denis, 2016, p.1). With the help of the appropriate data, it is always possible to make suitable decisions for the organisations taking part in the venture. With the help of latest IT developments, the business models can be improved, however, along with the IT developments, it is essential to gather and interchange appropriate knowledge and information. The collection helps in finding new solutions to the problems aroused in the venture. Interchange of data is very essential with application of suitable technology. This would help in improving the cooperation between the venturing companies. The conceptual model that has been explained in the article elucidates different concepts related to the exchange of information within cooperation. The model is also helpful in situation when any cooperation fails due to the misappropriate exchange of information and knowledge (Kravets and Zimmermann, 2012, p.12). Most of the ventures requirecooperation through the exchange of key data. Whether it is formation of any cooperation or the failure of it, this conceptual model presented in the article is necessary to be analysed. With the help of the model, detailed suggestion can be achieved in order to build an appropriate structure to enable proper governance of cooperation. To maintain proper exchange of effective information and cooperation, there are certain processes which are required to be fulfilled. Hence, an effective system plays key role in bring in success in a joint ventured cooperation. However, it has been argued that the model might face certain limitation because it requires extensive data and information about the other supporting tools (Ocasio and Radoynovska, 2016, p.1476127015625040). Application of the tool might not be effective in big organisations where it is always not possible to collect extensive data. Hence, the conceptual model requires empirical research to carry on with the explanations. Thus, those organisations who have established professional IT departments might find difficulty in using the model. It can be reviewed that IT has become an important aspect in proper maintenance of cross-border collaboration. In case of cross borders, the type of exchange makes a great difference to the cooperation that is received from the both ends. Also, in case of cross organisational cooperation, IT plays an important role with lots of research work that needs to be done. The concept of information governance is laid down to understand the details of the failure of the IT governance (Van Grembergen and De Haes, 2016, p.4890). It is necessary to focus on the governance as it plays an important role in achieving success in the long run. However, the IT governance has always been seen applicable for a single organisation as such and when it came to be applied in cooperation, IT management is to be referred. In the current business scenario, business has become more of joint ventures where business is performed through cooperation. However, the organisation is facing challenges in maintaining the cooperation and leading it towards success. This requires proper allocation of resources and information within the network for both the organisations as well as for individually. There is always a tendency of passing of asymmetric information which causes uncertainty and manipulations in the business level giving space to loss of trust. This is directly proportional to the poor performance of the venture and finally dissolving the joint enterprise with a great loss (Denis, 2016, p.2). There should be changes introduced in the pattern of the information flow and in the type of the information that is being passed on to the organisation level (Wu et al.2015, p.497). IT governance should be well managed and relied on the hand of effective team. Cooperation between organisations takes place to gain competitive advantage in the market. However, IT plays an important role in determine the longevity of the cooperation. Often due to wrong decision making technique, problems arise and the collaboration dissolves over time. Hence, the organisations going into joint ventures should properly manage their flow of information leaving transparency between them. This would help in avoiding misinterpretation of the collected data and information. Annotation: Information technology Governance mechanism and strategic alignment influence organizational performance In spite of the significance, IT governance has always been neglected by the organisations and well as the researchers in this field. Less available empirical studies have led the negligence on the important topic (Kravets and Zimmermann, 2012, p.66). Organisations should not forget that organisational assessment is generated through proper IT governance. Suitable strategic alignment is the key to effective IT governance, improving the performance of the organisation. The research study deals with the three interlinked themes of IT and they are IT governance, organisational; performance and strategic alignment. Social alignment is very much required within an organisation so that the different levels can work in harmony with each other. It has been noticed that due to the poor strategic alignment, the performance of the organisation depreciates to a great extent. Though the mechanism is quite vague, it can be considered that there are factors which are affecting the performance of the organisation. Here, in the study, the researcher takes the help of survey to collect information on the relation between IT governance and strategic Alignment and also strategic alignment influence of the performance of the organisation (Ocasio and Radoynovska, 2016, p.1476127015625040). Right from the very beginning, strategic alignment and IT governance has been helping organisations to achieve their set goals and targets. Without the help of IT, it has been difficult to sustain the highly competitive market. However, the success of any organisation is totally dependent on the IT governance. There must be an alignment between the IT governance and the organisational governance. When these two fall apart, the success of the organisation is to be doomed (Van Grembergen and De Haes, 2016, p. 4890). This has been proven over time with great examples. IT governance is subsequently important because it helps an organisation to create a value for itself through achieving the organisational goals. Different researchers have given different views on the relation between the proper IT governance and the performance of the organisation. Some are of the opinion that there is a positive relation as proper IT governance makes the organisation work more effectively and efficiently. IT governance of an organisation depends on upon the management of the organisation which strives towards achieving the organisation goal. It has also been seen that organisations find IT governance importance, however, do not understand how to co-relate it to the objectives of the company. It is quite evident that the IT related jobs are dependent on the IT professionals of an organisation. Those company head who belong to the non-IT group is failing to use it for their benefit. Along with this, strategic alignment has always been proven advantageous for the organisations who try to improve their performance. The question that arises is how to connect the two concepts of strategic alignment and IT governance to the performance of the organisation. However, some are of the view that strategic alignment is related to IT governance and can be gained through the proper IT governance. Though research has been done in the same field, yet there are gaps where there is no explanation available for certain mechanisms. With the help of proper mechanics and structure, it is possible for the firms to execute their part in alignment to the IT governance. The IT people who are responsible for the governance of the information should be able to transfer the knowledge and information to the other managerial people so that organisation can be run in a proper manner with appropriate dedication. After all the researches done to establish a relation with the profitability of the organisation and IT governance, it can be stated that there is a positive undertone that is available. With the help of shared information, organismal transparency increases and it becomes easier to reach the set target in the long run. Reference list Denis, D.K., (2016). Corporate Governance and the Goal of the Firm: In Defense of Shareholder Wealth Maximization.Forthcoming in the Financial Review. Kravets, J. and Zimmermann, K., (2012). Inter-organizational Information Alignment: A Conceptual Model of Structure and Governance for Cooperations. Ocasio, W. and Radoynovska, N., (2016). Strategy and commitments to institutional logics: Organizational heterogeneity in business models and governance.Strategic Organization, p.1476127015625040. Van Grembergen, W. and De Haes, S., (2016), January.Introduction to the IT Governance and Its Mechanisms Minitrack.In2016 49th Hawaii International Conference on System Sciences (HICSS)(pp. 4890-4890).IEEE. Wu, S.P.J., Straub, D.W. and Liang, T.P., (2015). How information technology governance mechanisms and strategic alignment influence organizational performance: Insights from a matched survey of business and IT managers.Mis Quarterly,39(2), pp.497-518.