Assessing Trust Variable Impact on the Information

Technology Governance Using Business-IT

Alignment Models: A Model Development Study
Resad Setyadi
Dept. of Information System
University of Bung Karno
Jakarta, Indonesia Country
resadsetyadi@gmail.com

Abstract—Information technology (IT) governance is still a at five focus areas in IT governance, namely Strategic
problem for most institutions. IT governance is still something Alignment [5]. In his research, Wilkin reviewed several other
not easy to understand especially to run. Trust is one of the studies relating to Strategic Alignment (SA). In this study, it
important attributes used as parameters in IT governance. The was seen that the SA area received considerable attention
purpose of this paper is to develop a research model of trust in (31%) from other areas. Another researcher describes the
IT governance implementation model in educational relationship between IT governance practices and business-
institutions that it is influenced by business strategy and IT IT alignment by making a comparison of the maturity of IT-
alignment as a connecting variable between trust variables and business alignment [6]. The study also compared
IT governance variables. The method and theories in this study
qualitatively about the usefulness of IT governance practices
uses the previous studies by adopting, integrating and adapting
in extreme cases. The purpose of this paper is to develop a
the business-IT alignment into IT governance trust model then
the new model proposed and developed. The new model research model of trust in IT governance implementation
consists of 4 variables in 5 influential relationships. This study model in educational institutions influents by business
also shows coherent aspects of the process model, the causal strategy and IT alignment as a connecting variable between
model, the questionnaire of each indicator. Determination trust variables and IT governance variables. The second
alignment of business strategies and IT strategies to support IT objective is the educational institutions become more focused
governance reach of 83 % and this result conclude the on aligning business and IT strategies in terms of IT
variable system trust, business strategy and IT strategy has governance. By focusing on the strategy alignment area, this
real influenced to IT governance. Therefore, the goal of paper presents each attribute that is concerned in trusting IT
educational institutions is achieved a good IT governance so governance, so that it is expected to help organizations or
the business-IT alignment can be reach. companies understand what is the focus in measuring
alignment of business and IT strategies for achieving
Keywords— IT governance, business-IT alignment, trust, IT institutional goals. There are two questions in this study.
governance trust They are :
Q1: How does the conceptual relation between
I. INTRODUCTION
technology of IT governance and Business-IT alignment?
Strategic alignment is one focus area of trust in
Information Technology (IT) governance [1]. Strategic Q2: How does the integration between IT trust variable,
alignment aims to achieve effectiveness and efficiency in IT governance and Business-IT alignment in to a model ?
achieving business and IT so that it can work well and The discussion of this paper is divided into 5 sections
institutional goals can be achieved [2]. One of the criteria for First, the conceptual introduction. Second, the literature
measuring the maturity of business strategy and IT alignment review aims to discuss theoretical frameworks. Third, the
[3] by shows that IT governance is an important thing to description of research method. Fourth, result and
understand more deeply. discussion. The final section is conclusion.
Every educational institution, large and small, public and
private, requires IT governance. To ascertain whether IT II. LITERATURE REVIEW
supports the strategies and objectives of institutions, the level
of implementation of IT governance in different institutions A. Luftman IT-Business Alignment Maturity Model
depends on the form of institutions, industries or regulations The previous research (Fig. 1), IT-Business Alignment
applied to these institutions. In general, the regulations are Maturity provides a measurement framework for alignment
bigger and tighter in institutions. then the IT governance maturity between business strategies and IT strategies [3].
structure is increasingly detailed [4]. In fact, in some The business and IT alignment model (Fig. 2) Focuses on
institutions, the importance of IT governance is still not fully corporate activities to achieve cohesive goals through IT
understood, not even implemented and is still a debate. management units as technical units and business units as a
Business culture still does not assess IT as a unit in business functional company. "The six Business-IT Alignment
and sees IT as merely a supporter in running a business. Criteria" includes 5 focuses of strategy alignment maturity,
Some studies on IT governance that are the reference in this namely initial process, committed process, established
paper who conducted a review of IT governance by looking

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focused process, improve / manage process and optimized TABLE I. ENABLERS AND INHIBITORS [7]
process [3]. Table Factor enabler and inhibitor
Enablers Inhibitors
Senior Executive support for IT IT business lack close
relationships.
IT involved in stratgey IT does not prioritize well.
development
IT understand the business. IT fails to meet commitments.

Business-IT partnerships. IT does not understand the

business.

Well-proritised IT projects. Senior executives do not support

IT.

IT demonstrates leadership. IT management lack leadership.

C. Trust System
The use of trust variable is to describe the ITG
performance when it is used to assess the ITG education
institution [8, 9]. Trust [10, 11] is defined as follows:
• Accumulated values from history and expected values
for the future.
• can be measured quantitatively in order to evaluate
the physical component values, value chain, and
Fig. 1. Strategy Alignment Maturity [3]
human behavior for decision making process.
• Applied to the social domain, cyberspace and
physical.
• The entity is "trust" at that time if there is an
assumption that the next entity will become exactly as
expected at the beginning entity.
• The relationship between two entities when each
believes that the other will behave exactly as
expected.
• The strong trust in the reliability and correctness of
the information or in the ability and disposition of
entities to act appropriately, in certain contexts.
Fig. 2. Business-IT alignmement model [3]
• Dependence on someone's character, ability, strength,
B. Inhibitor Factors and Enables of Success in Business or truth.
and IT Alignment
The inhibiting factor of harmony can be caused by poor D. IT governance
communication between business units and IT, then there is According to Tonneli, IT Governance is a capability that
no decision from the organization to retain talented personnel is very important for IT strategic alignment and business
within the company [7]. The absence of exchanges between delivery [12]. The relational mechanism between IT and
business staff and IT staff is also one of the reasons for the business is a determining factor for IT performance, and also
lack of optimal alignment between business and IT. Enabler positively correlates with organizational performance.
factors (determinants of success) of the maturity of business
and IT alignment can be realized by prioritizing IT as a Benaroch argues that the board-level ITG is responsible
business supporter. Establish good communication between for monitoring managerial IT decisions and provides
business units and IT units, as well as implementing policies for controlling IT resources [13]. The companies
procedures where IT units have an obligation to understand need to make particularly their broad IT competency level. In
business and business units that are obliged to understand IT addition, it is expected that CIO turnover is lower in IT-
can realize maximum business and IT harmony. Table I intensive companies where the change can be more
below is a factor of enablers and inhibitors that influence the disruptive.
business-IT alignment.
Based on the previous model in Fig. 3 [8-10], the
researcher try to adopt, integrate and adapt business-IT
alignment to ITG trust model and develop a new model. A
business and IT should evolve to a point where IT both

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enables and drives changes to both business processes as literature related to developing the model for initial research
strategies. initiation. Secondly, develop a model with the assumption,
adoption and integration between business-IT alignment
model [3] and ITG trust model [8, 10] and finally a
proposed model created.

IV. RESULT AND DISCUSSION

The proposed model with its 4 variables and 5 relational
idea (Fig. 5). The development model generated from the
integrating of the ITG trust model [ 8 - 1 0 ] and Business-IT
alignment model [3].

Fig. 3. The previous research model of ITG trust [8-10]

Zhang also explains if IT governance is an important

precursor of IT capabilities and builds superior IT
capabilities and indirectly creates companies achieving
competitive advantage [14].

E. The gap of The Previous Research and Current

Research
The gap from the previous research are, first, in the
previous research the analysis of IT governance in high
school level education institutions uses IT governance
analysis with trust variables as new variables in the adoption, Fig. 5. A business-IT governance trust alignment model
integration and adaptation of the parasuraman model [15]
and the Nielsen model [16] so that a trust governance model Following the assumptions of ITG trust on Business-IT
is formed. Secondly, for the present research, there is the model it was found from the ITG trust model [8, 10], they
adoption, integration and adaptation of the IT-business are: System Trust (SYT) and IT governance (ITG) then it
model [3] into the trust governance model [8-10] which is integrate to Business-IT alignment model [3] which consists
placed between the system trust and IT governance. Because, of business strategy (BUS) and IT strategy (ITS).
researchers see the need for the placement of strategic The proposed variable of confidence in the expectations
variables in business and IT management between system of ITG quality as a product (Q1). Logic concept of the
trust and IT governance trust is important so IT governance integration of ITG trust model [8, 10] into Business-IT
is increasingly realized. alignment model [3] becomes a linear presentation. The
Table II explain the variables definition of the models. Table
III. RESEARCH METHOD III explain the indicators of the models. Table IV explain the
questions proposed (Q2).
Based on the literature review, there are four main
progress to develop a model (Fig. 4). The research
methodology starts from study literature. Continue, by TABLE II. VARIABLES AND DEFINITIONS [3, 5, 8-11]
assume, adopt, combine, integrate and adapt the variable Var Definitions
business-IT [3] to ITG trust model [8-10]. The quality of the satisfaction level of users during utilizing
SYT
of the IT system.
ITG The achievement of the IT governance
BUS Collaboration on business and IT alignment
ITS Quality of IT system level

TABLE III. INDICATORS AND DEFINITIONS [3, 5, 8-11]

No Indicators Definitions
The quality of the adaptable IT and
SYT1 Resilience
suitable to the required demands.
Generally The best pleasure quality of the overall
SYT2
Pleasure aspect of the IT system use.
Business The business value creates a good IT
ITG1
Pleasure governance quality.
Competitive The quality of an integrated IT
ITG2 advantage system connected to the business
competitions.
the quality of knowing and understanding
BUS1 Sophistication
Fig. 4. The research procedure [8-10] of business-IT strategy is good.
The benefit of I T u s e that giving to us
BUS2 Profitable
First, observe IT governance in institution that already The function of IT system features is
ITS 1 Efficient
have a computerized system, then researchers conduct efficient

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 ITS 2 Effective The IT system features is effective Based on validity model, the author refers to the model of
the validity point. The model validity point is how the model
TABLE IV. THE QUESTIONNAIRE STATEMENTS [3, 5, 8-11] can present the real phenomenon. It can be done by
SYT1 Users are happy with the adaptable of the IT system employing the inverse retrieval from the model development
SYT2 Users are happy with the performance of the IT system process. The cohesive interrelation among the proposed
ITG1 Integration of business satisfaction improves the IT system. model and the question measurement may present the
ITG2 Integration of the system improves the operational
productivity of the institution validity point of the model.
BUS1 Users are understood of business-IT strategy. The second step is to do a collinearity statistic test.
BUS2 Users feel the profitable when using IT systems from the From Fig.7 shown if the value is less than 5, it means that
business strategy of the company. the collinearity statistic test requirements are safe and
ITS1 The quality of IT system is good rarely influenced from have the requirements to be used as good data.
constraints, difficulties, and troubles.
ITS2 The quality of easiness IT system use when its maintenance is
good

In developing the model there is an initial conclusion,

first, the implementation of the research is transparent, as
explained in the research method. Second, questions can be
taken upside down based on indicators, variables, and
assumptions.
The study of the perspectives development model
demonstrates how to do the validity. In the beginning, the
study would be conducted intelligible and this is the validity
process point. In this study, the researcher use the
development assumptions, adopt the business-IT
alignment model [3] and ITG trust model [8-10], combine Fig. 7. Collinearity statistic test
both models, and adapt the variables, indicators, and
questions, in terms of the IT governance. Second, to make The next step is to look at the extent of the influence
the validity of this study, then researcher using SMART of the system trust variable, business strategy, and IT
PLS to analyze and check the questionnaire and also strategy to the final variable, the IT governance variable
researcher invites someone who is an expert in the field of (Fig. 8). Evidently, the influence of system trust, business
IT governance like a government expert in the field of IT or strategy and IT strategy on the IT governance variable is
lecturers who are experts in the field of IT governance to 83%. It means, the system trust variable, business
b e c o m e the reader a n d t h e y can also be seen inversely strategy, and IT strategy significantly influence the IT
based on the indicators, variables, and the assumptions governance variable
besides the utilization of the assumptions, adoption,
combination, and adaptation processes.
The 30 data population used in this study are teachers,
vice principals, principals, non-academic staff
(administrative staff, library employees) who are in several
high school institutions in the city of Bekasi.
From the results of testing reliability and validity (Fig.
6), the first time seen is the Cronbach’s Alpha value and the
resulting value turns out to be more than the standard value
of 0.7, so the data is declared reliable. Likewise, the results
shown in the AVE value with values above the standard
value of 0.5 are shown in green in the value displayed. If the
value is below 0.5, the color displayed will be red.

Fig. 8. The influence of other variables on IT governance variables (R2

test )

There are two contributions from the research, which

are a transparent of the development model will be
processed and the rationality model will be developed.
Different model propositions can be shown from the use of
other understandings, assumptions, and perspective points.
Thus, it is necessary to re-evaluate the model and
instrument of research because of the existence of study
boundaries so the limitations that arise are the consideration
points for future work
Fig. 6. Reliability and Validity of business-IT governance model

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 V. CONCLUSION [14] P. Zhang, K. Zhao, and R. L. Kumar, "Impact of IT Governance and
IT Capability on Firm Performance," Infromation Systems
This study explains the connection between ITG, trust Management, vol. 33, p. 17, 2016.
factors and business-IT alignment in terms of the use of IT [15] Parasuraman, Ananthanarayanan, and Colby, "An updated and
governance trust. Secondly, it is how to combine ITG trust streamlined technology readiness index: TRI 2.0," Journal of service
model and business-IT alignment model in the use of research, vol. 18, pp. 59-74, 2015.
[16] J. Nielsen, "Usability 101: Introduction to usability," ed, 2003.
information technology. The model proposed and developed
by adopting, integrating and adapting the Luftman business-
IT alignment into IT governance trust model. The model is a
model development study that proposed to respond user trust
on system use impact in the IT governance using business-IT
alignment model. The result of the study is a business-IT
governance trust alignment model. The model consists of 4
variables in 5 influential relationships. This study also shows
coherent aspects of the process model, the causal model, the
questionnaire of each indicator. The variable of system trust,
business strategy and IT strategy has impact on the IT
governance variable is 83%. It means, the system trust
variable, business strategy, and IT strategy significantly
influence the IT governance variable.Determination of trust
attributes is used for the assessment of IT-business
alignment, thereby helping to achieve alignment of business
and IT strategies so the goals of educational institutions are
achieved and one of them is through from IT governance. In
consideration of research material for the future work of the
next model can be added additional variables besides
business-IT strategy between the system trust variables and
IT governance. to proceed to the examination stage.

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