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The power stage is that small flat electronic black gizmo fastened at the front of the left inner fender right next to the air box. If cleaning up the power stage connector doesn't fix your problem then it probably needs replacing.
FYI, Haynes is right, on a NA '89 740 you'll find the ICU buried up under the dash above the driver's right foot. These units don't really have a history of failing. BTW, for a B230F it should be an EZ-116K rather than an EZ-117K which was used on the B230FT. The EZ-116K was also used on the B234F. An EZ-118K was used on the B230K(jet) in some markets. The Volvo service manual also indicates some B230F's and B234F's may have been equipped with the Rex i ignition.
Before you go throwing too many more parts at the problem, you might want to check for stored diagnostic codes at the OBD socket on the left strut brace in case that points you in another direction. You'll find the information on how to do that in Steve Ringlee's 700/900 FAQ feature area here on this site. For the ignition side you want to pull the codes with the test lead in the #6 socket, but do the #2 socket as well. Just pray that it isn't your ECU, the original '89 LH 2.4 units were unfortunately known for failing. The normal symptom for that problem is a failure to run the fuel pumps (like during cranking), so in that regard you seem okay.
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