The productivity paradox of information technology
Communications of the ACM
Stochastic frontier analysis
IT Governance: How Top Performers Manage IT Decision Rights for Superior Results
IT Governance: How Top Performers Manage IT Decision Rights for Superior Results
Data warehouse governance: best practices at blue cross and blue shield of North Carolina
Decision Support Systems
A Framework for Assessing the Business Value of Information Technology Infrastructures
Journal of Management Information Systems
The influence of governance equilibrium on ERP project success
Decision Support Systems - Special issue: Economics and information systems
Environmental Uncertainty and IT Infrastructure Governance: A Curvilinear Relationship
Information Systems Research
Journal of Management Information Systems
Governance practices and software maintenance: A study of open source projects
Decision Support Systems
Journal of Management Information Systems
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This paper studies IT business value in the public sector organizations, to which the information systems (IS) literature so far has paid little attention. Specifically, we investigate the moderating effect of IT governance on the relationship between IT investments and government performance. Drawing upon the theory of political control on bureaucracy from the political sciences literature, we hypothesize that the presence of legislative controls on IT management increases returns to IT spending, which are measured by cost efficiency. Our empirical analysis in the context of U.S. state governments shows that formal establishment of a chief information officer (CIO) position by legislation is a key prerequisite to positive returns from IT expenditures in state governments. Also, the impact of IT spending on state cost efficiency increases when a state senate approves appointment of CIO nomination than when it does not. This study contributes to the IS literature by demonstrating the importance of elected representatives as part of IT governance in the public sector organizations.