IT competency and firm performance: is organizational learning a missing link?

This study proposes that organization learning plays a significant role in determining the outcomes of information technology

Michael J. Tippins; Ravipreet S. Sohi

2003

Scholarcy highlights

  • Many organizational leaders and strategy scholars would agree that the ability to effectively manage information within the firm has become critically important because it may provide a basis for gaining a competitive advantage
  • The mediating effect of organizational learning on the relationship between information technology competency and firm performance is said to be supported when: the partial mediation model explains more variance in firm performance than the direct model, there is a significant relationship between IT competency and organizational learning, a significant relationship between IT competency and firm performance is greatly diminished or eliminated in the partial mediation model, and there is a significant relationship between organizational learning and firm performance
  • The results show that organizational learning mediates the relationship between IT competency and firm performance
  • Positive relationships exist between IT competency and organizational learning and organizational learning and firm performance
  • We propose that to assess IT competency one needs to look beyond specific technologies, to three interrelated components: IT objects, IT knowledge, and IT operations
  • We further propose that all three components must be present for a firm to achieve IT competency
  • The results provide evidence that firms seeking strategic advantage solely by developing information technology competency may not necessarily realize enhanced performance; the firms must focus their attention on intervening processes such as organizational learning in order to determine what benefits are being derived from ITbased information systems

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