Influence of Information Technology Governance to Company Performance with Mediation of Information Technology Capabilities in Indonesia

ABSTRACT : This research was conducted to implement the research model undertaken by Zhang, Zhao, and Kumar (2016) who found the relationship between information technology governance, information technology capability, and company performance. The study was conducted by taking samples of listed companies listed on the Indonesia Stock Exchange as many as 553 companies to retrieve the data required in this study. Hypothesis testing is done by using statistical tool Warppls version 5 where the test results indicate that information technology capabilities have a non-significant positive relationship to company performance. The results also show that information technology capabilities do not mediate the relationship between information technology governance and company performance. The low significance of the relationship between information technology capabilities and company performance because companies in Indonesia who use information technology in their daily operations are still low where this is indicated by at least open companies in Indonesia who won awards in the field of information technology.
KEYWORDS: capabilities, companay performance, governance, information technology