The impact of IT governance wisdom on board decision-making: A perspective of the philosophy of The Art of War

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Abstract

Board decision-making is a complex process. It is represented by reasoning for choosing the most suitable alternative within a series of options for the operation of the corporation. In practice, strategic decision-making is an important function of the board of directors, especially in the information age. Although there are various determinants of the board for carrying out decision-making, there has been little research concerning the impact of information technology (IT) governance wisdom on board decision-making. This study seeks to investigate the origin of IT governance and analyze IT governance wisdom from the perspective of the philosophical thinking of The Art of War. The analysis indicates that the concept of IT governance must have been produced no earlier than the late 1990s, highly likely at the beginning of the 21st century. In addition, this study presents the results of qualitative field research of a Chinese information and communication technology (ICT) company which indicates that it has an important meaning in explaining IT governance wisdom might have a significant influence on board decision-making. In summary, the importance of information governance wisdom in the decision-making process of the board of directors is also a reflection of intelligent management while considering the interests of shareholders in the digital era.

Keywords: Board Decision-Making, IT Governance Wisdom, Philosophy, The Art of War

Authors’ individual contributions: Conceptualization — L.C. and P.P.; Methodology — L.C. and P.P.; Investigation — L.C. and P.P.; Writing — Review & Editing — L.C. and P.P.

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

Acknowledgements: The authors are grateful to Dr. Zappia Francesco for his valuable guidance.

JEL Classification: L10, L20, L21, M10, M14, M15

Received: 17.04.2021
Accepted: 03.08.2021
Published online: 06.08.2021

How to cite this paper: Chen, L., & Pavone, P. (2021). The impact of IT governance wisdom on board decision-making: A perspective of the philosophy of The Art of War. Corporate Board: Role, Duties and Composition, 17(2), 27–37. https://doi.org/10.22495/cbv17i2art3