How Do Firms Derive Value from Cloud Computing Investment? Examining the Role of Information Technology Governance

The emergence of cloud computing (CC) represents a fundamental change in the way information technology (IT) services are designed and delivered. Despite the growth in investing in CC, our understanding of the role of IT governance in the process of deriving value from CC investment is limited. Therefore, this study determines the relationship between IT governance and value derived from CC investment. A research model is developed, and a survey is designed and validated to investigate the relationship between IT governance mechanism and CC value. The contributions of this study include three areas. First, it shows that IT governance mechanisms are important antecedents of the value that a firm can achieve from investing in CC. Second, the value achieved from CC investment enhances organizational performance. Lastly, by providing a decision-making guideline to help organizations be successful in CC investment while achieving maximum benefits, the study provides implications for practice