To illustrate IT value creation in business networks, the concept of inter-organizational information systems (IOS) governance is proposed, and a research model based on its antecedents and consequences is built. Through literature review and hierarchical confirmative factor analysis (HCFA), IOS governance is featured by dimensions of structure and process as structure integration and joint action. IOS assets and inter-firm communications are the main contingency factors from technical and organizational aspects respectively. Consequences are measured by cooperative performance. Using survey data from China, the transitive effect of IOS governance is tested and verified. Two-way interactions analysis reveals the dominating contingency in the governance decision making. Centralized or decentralized governance mode is applied to align with the cooperative patterns of exploitation or exploration. Through a hierarchical model and contingency analysis, the value creation mechanism of IOS governance is revealed. Our studies expand and enrich the research on IT governance in networks, and provide inspirations for practice.