Data governance and the secondary use of data: The board influence |
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| Affiliation: | 1. Faculty of Business and Economics, The University of Melbourne, Parkville VIC, Australia;2. School of Computing and Information Systems, Faculty of Engineering and Information Technology, The University of Melbourne, Parkville, VIC, Australia;3. School of Accounting, Information Systems and Supply Chain, College of Business and Law, RMIT University, Melbourne, Australia;1. Information and Process Management Dept., Bentley University, 175 Forest Street, Waltham, MA 02452, USA;2. Department of Operations, Information, and Technology, IESE Business School, University of Navarra, Av. de Pearson, 21, 08034 Barcelona, Spain;1. Business Information Systems, Business Information Systems Discipline, University of Sydney, Australia;2. Information Systems, School of Information Management, Victoria University of Wellington, New Zealand;3. Information Management, Department of Informatics, University of Zurich, Switzerland;4. Computer Information Systems, Robinson College of Business, Georgia State University, USA;1. Department of Management Studies, IIT Madras, Chennai, India;2. Business School, The University of Sydney, Australia;1. Utrecht University, Copernicus Institute of Sustainable Development, Princetonlaan 8a, 3584 CB Utrecht, the Netherlands;2. Örebro University, School of Business, Örebro 701 82, Sweden;3. Delft University of Technology, Faculty of Technology, Policy and Management, Jaffalaan 5, Delft 2628 BX, the Netherlands;4. CTG at University at Albany, SUNY, 1400 Washington Avenue, UAB 120, Albany, NY 12222, USA;5. Universidad de las Americas Puebla, Ex Hacienda Sta. Catarina Mártir S/N. San Andrés Cholula, Puebla, C.P 72810, Mexico |
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| Abstract: | The business analytics and strategic management literatures suggest that organizations should seek to exploit data as a key mechanism for competitive advantage. However, the rules of engagement are evolving, the regulatory landscape is becoming increasingly complex, and examples of poor outcomes are increasingly common. The board – in its role of setting and monitoring risk appetite – needs to be able to govern the risk/reward trade-off of the data asset. Contemporary data governance approaches are inadequate: they are overly rigid and risk oriented, limited in scope to an organization's self-interest rather than considering the broad set of stakeholders, and do not provide a platform for the board to manage this critical risk. This paper uses a unique set of informants – 41 board directors – to demonstrate that differences in board perspectives influence how organizations explore the secondary use of data. Furthermore, this paper identifies a set of relevant individual, organizational and environmental factors and presents empirically based configurations of these factors that lead organizations to consider (or neglect) the secondary use of data as a critical enabler of competitive advantage. |
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