In recent years Living Labs, which embody an open innovation milieu, have gained currency as representing a salient catalyst for Smart City research and development. However, the current body of Living Lab research, in conjunction with the fragmented isolated nature of existing Living Labs dispersed across the European Union (EU), indicate that a lack of common standardised IT governance procedures are currently being operationalised. While cross border pan European Living Lab initiatives are emerging to rectify this issue, further research is warranted to better understand the role of IT governance in Living Labs and identify how varying IT governance mechanisms impact the effectiveness of open innovation processes. Thus, this paper begins a theory building process for examining IT governance in living labs. The paper concludes by presenting a conceptual framework for future testing.