Governance Agility, Not Tech Itself: Real Options in IT Investment Governance as a Source of Advantage

Create a governance agility index capturing cadence of IT portfolio rebalancing, option discipline, and decision rights. Test whether firms that reconfigure IT investments faster and with better option logic outperform even with similar technology stacks. This isolates governance meta-capability as the scarce resource, challenging the assumption that capabilities come from tech assets alone. It reframes advantage as stemming from reallocation option quality and speed under uncertainty, embedding real options logic in governance. This connects to strategic agility but focuses on the portfolio governance layer. The idea explains why similarly digitized firms diverge in performance, especially during regulatory shocks and tech waves where governance agility converts into superior net present value capture. The impact is a new, measurable strategic capability with clear managerial levers (decision rights, kill rates, cadence). Methods include difference-in-differences around regulatory/tech shocks, portfolio trace data, and sector tests in MSMEs and capital-intensive agribusiness where option timing is pivotal.

References:

1. IT Investment Governance and Corporate Governance: Perspective and Approach. Abhishek Mahalle, J. Yong, Xiaohui Tao (2020). International Conference on Behavioral, Economic, and Socio-Cultural Computing.
2. Strategic Agility and Sustainable Competitive Advantage: How to Leverage Top Management Team Characteristics. Farida Karoney, Z. Awino, Evans Aosa, G. Wainaina (2024). Journal of Strategic Management.