Data Governance for Data Sharing: Why Is It So Hard?

Efficient firm-wide allocation of data resources is a key goal of data governance.One way enterprise assets are often allocated is by an internal market wherein the internal organizational units inside the firm sell resources to each other.However, not all resources are efficiently allocated through free markets.Computerized data possess economic characteristics that may make an internal market for data fail.This research uses a literature review to hypothesize a structural cause/effect model of how this market failure may occur and then analyzes the validity and quantitative implications of that model using exploratory partial least squares structural equation modeling.The research concludes that the market failure is occurring in practice and that enterprise management and data governance are not effectively recognizing or dealing with the market failure.The paper concludes with recommendations for improving data governance practices and for additional research.