It Auditing and Enterprise Governance of It Mechanisms in the Banking Industry of Ethiopia
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Date
2018-06-04
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Addis Ababa University
Abstract
The digital world phenomenon creates both tremendous benefits and unprecedented risks across the business enterprise. Hence, measuring the current performance of IT Auditing and Enterprise Governance of IT practices becomes crucial. Prior studies have revealed that IT governance performance of firms was strongly and positively correlated with overall performance of firms. However, IT auditing practices were not rigorously designed and implemented in their studies as well.
This study mainly focused on investigating the influence of IT Auditing and Enterprise Governance of IT Mechanisms on Firm Performance in the Banking Industry of Ethiopia. Quantitative methods of data collection and analysis have been used. The primary data were collected from nine commercial banks using a survey. A total of 85 questionnaires were distributed, 68 (80%) of the respondents were returned.
The finding of the study indicates that there were strong and positive correlations between the constructs of both IT Auditing and EGIT Mechanisms, and their influence on EGIT Performance. Regardless, IT Audit Quality has positive and strong correlation to IT Auditing than the role of IT Auditors. Similarly, EGIT Structures and Relational Mechanisms have positive and strong correlation to EGIT Mechanisms. However, in this research, EGIT Processes were not statistically significant when compared to the other latent variables of EGIT Mechanisms. Overall, EGIT performance of firms was strongly and positively correlated with firm performance.
As key findings of this research, both IT Auditing and EGIT Mechanisms have positive influence on EGIT Performance. Consequently, Enterprise Governance of IT performance significantly and positively improves firm performance, and is a most worthy consideration for such firms. Finally, the researcher recommends to execute the proposed framework as a point of reference and for the firms to benefit from the IT auditing and EGIT model for mitigating some of the risks they face. Undoubtedly, further studies will expand the scope of this research in other IT/IS intensive sectors such as Insurance, Manufacturing, Aviation and Telecom.
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Keywords
Enterprise Governance of IT, IT Auditing, Firm performance