The Impact of Mergers & Acquisitions on IT Governance Structures: A Case Study

Abstract

Developing information technology (IT) governance structures within an organization has always been challenging. This is particularly the case in organizations that have achieved growth through mergers and acquisitions. When the acquired organizations are geographically located in different regions than the host enterprise, the factors affecting this integration and the choice of IT governance structures are quite different than when this situation does not exist. This study performs an exploratory examination of the factors that affect the choice of IT governance structures in organizations that grow through mergers and acquisitions in developing countries using the results of a case study of an international telecommunications company. We find that in addition to the commonly recognized factors such as government regulation, competition and market stability, organizational culture, and IT competence, top management’s predisposition toward a specific business strategy and governance structure can profoundly influence the choice of IT governance in organizations. Managerial implications are discussed.