An information technology and innovation committee to guide digital transformations

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Abstract

In corporate governance, more dedicated attention to digital transformations is becoming essential. This research applies design science to design an information technology and innovation (IT&I) committee as an integral part of corporate governance for organisations that are engaging in digital transformations. This research builds on the work of Turel and Bart (2014). In our research, we conclude that the seven Dutch studied organisations, which are engaging in digital transformations, have corporate governance challenges for the board of directors related to these transformations. These challenges include the presence of digital capabilities and experience, as well as having sufficient dedication and focus on digital transformation. In most organizations, the audit committee addresses the risks associated with information technology including digital transformations. However, our research shows that the audit committee by default does not focus on business opportunities of digital transformations. Our research proposes a design for an IT&I committee, which enhances corporate governance, as well as the long-term value creation by means of IT, technology, and innovation. The IT&I committee councils and monitors digital transformations and facilitates decision-making by the board of directors. Overall, the results of our research suggest that installing an IT&I committee improves corporate governance for organisations that are engaging in digital transformations.

Keywords: Audit Committee, Board of Directors, Corporate Governance, Design Science, Digital Transformation, Information Technology and Innovation Committee

Authors’ individual contributions: Conceptualisation — E.B. and R.B.; Methodology — E.B.; Investigation — R.B. and E.B.; Writing — Original Draft — E.B.; Writing — Review & Editing — R.B.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: The Authors would like to thank prof. Carol Ou, Tilburg University, the Netherlands, and Marla Dans for providing feedback to earlier versions of this publication.

JEL Classification: O31, O33

Received: 18.06.2021
Accepted: 27.08.2021
Published online: 30.08.2021

How to cite this paper: Beulen, E., & Bode, R. (2021). An information technology and innovation committee to guide digital transformations. Corporate Board: Role, Duties and Composition, 17(2), 38–53. https://doi.org/10.22495/cbv17i2art4