The Vicious Cycle of Magical Thinking: How IT Governance Counteracts Digital Transformation

Digital transformation is associated with a fundamental change in the operating models of organizations and industries alike. At the same time, previous research highlights that existing governance practices may act as a deterrent to digital transformation. In this study, we explore how the IT governance of a large university counteracts necessary digital transformation in higher education over time. We show how the adoption of an industry-standard IT governance framework, through a series of generative mechanisms, leads to a vicious cycle that restricts digital transformation into mere computerization, thereby successfully counteracting digital transformation. In other words, the IT governance framework increasingly protects the organization from the organizational change brought on by new digital opportunities. This is discussed in relation to the literature on IT governance and digital transformation with the intent of contributing with a critical perspective on the widespread adoption and use of standard IT governance framework.