Shepherd Or Servant: Centralization And Decentralization In Information Technology Governance

Abstract

Information Technology (IT) governance deals with how decision-making authority concerning IT is distributed across the firm.  Based upon that distribution of authority, different behaviors and consequent decisions can be observed.  A fundamental question is the degree of centralization and decentralization of that authority and the ability to standardize.  Standardization often has benefits, but there can be negative repercussions if the standard does not take into account localized needs.  The dominant governance mechanism has changed as technology and available tradeoffs have changed.