Impact of Information Technology Towards Organizational Performance
DOI:
https://doi.org/10.14738/assrj.106.2.15019Keywords:
Information Technology, Organization Performance, IT Knowledge, IT Competency, IT OperationAbstract
Since the beginning of the 21st century, numerous organizations have extensively implemented information technology into their operations. With regard to this, it captures the interest of researchers, practitioners, academicians, and policymakers to comprehend the role of organization dynamic capability in information technology and the role of digital leadership in enhancing organizational performance and enabling the information technology process. There was limited study on the impact of technology on the performance of government agencies. Therefore, this research focuses on government agencies in Malaysia. This study was conducted to seek the true role of information technology in organizational performance and the impact of information technology on organizational performance. Through an analysis of the 131 randomly selected workers, this paper investigates the impact of information technology on organizational performance. This study examines the effects of IT Operation, IT Knowledge, and IT Competence on the performance of an organization. In this research, SPSS was used for normality and reliability analysis, as well as descriptive organization multiple regression analysis. The result revealed that only IT Competence has a positive impact on organizational performance. The finding also revealed that the impact of information technology on the performance of an organization is minimal and contributes a minor impact.
References
Abouelmagd, M. M. (2016). The Impact of Technology Towards Organizational Performance.
Al-Azzawi, A. K., & Altmimi, L. A. (2015). Effect of information and communication technology investment on the profitability of the Jordanian commercial banks. European journal of business and management, 7(28), 166-173. 135
Buckley, J., Seery, N., Power, J., & Phelan, J. (2019). The importance of supporting technological knowledge in post-primary education: A cohort study. Research in Science & Technological Education, 37(1), 36-53.
Calvard. (2016). Big data, organizational learning, and sensemaking: Theorizing interpretive challenges under conditions of dynamic complexity.
Canessa-Terrazas, E. C., Morales-Flores, F. J., & Maldifassi-Pohlhammer, J. O. (2017). The impact of IT-enhanced organizational learning on performance: evidence from Chile. Revista Facultad de Ingeniería Universidad de Antioquia, (82), 60-67.
Chegus, M. (2018). Influence of Technology on Organizational Performance: The Mediating Effect of Organizational Learning.
Coakes, S. J. (2013). In SPSS: analysis without anguish: version 20 for Windows. Australia: WILEY Publication
Farhanghi, A.A., Abbaspour, A. & Ghassemi, A. (2013). The effect of information technology on organisational structure and firm performance: an analysis of consultant engineers’ firms (CEF) in Iran. Procedia – Social & Behavioral Sciences, 81, 644-649.
Farrington, T., & Alizadeh, A. (2017). On the Impact of Digitalization on R&D: R&D practitioners reflect on the range and type of digitalization’s likely effects on R&D management. Research-Technology Management, 60(5), 24-30.
Foroudi, P., Gupta, S., Nazarian, A., & Duda, M. (2017). Digital technology and marketing management capability: achieving growth in SMEs. Qualitative Market Research: An International Journal.
Hoffman, A. J. (1999). Institutional evolution and change: Environmentalism and the US chemical industry. Academy of management journal, 42(4), 351-371.
Khan, U., Zhang, Y., & Salik, M. (2020). The impact of information technology on organizational performance: The mediating effect of organizational learning. The Journal of Asian Finance, Economics and Business, 7(11), 987-998.
Kline, R. B. (2011). Principles and practice of structural equation modeling. New York: Guilford Press.
Norström, P. (2014). Technological knowledge and technology education (Doctoral dissertation, KTH Royal Institute of Technology).
Nunnaly, J. C., & Bernstein, I. H. (1994). Construction of conventional tests. Psychometric theory, 293-323.
Real, J. C., Roldán, J. L., & Leal, A. (2014). From entrepreneurial orientation and learning orientation to business performance: analysing the mediating role of organizational learning and the moderating effects of organizational size. British Journal of Management, 25(2), 186-208.
Robbins, S., Judge, T. A., Millett, B., & Boyle, M. (2013). Organisational behaviour. Pearson Higher Education AU
Siddique, M., Procter, S., & Gittell, J. H. (2019). The role of relational coordination in the relationship between high-performance work systems (HPWS) and organizational performance. Journal of Organizational Effectiveness: People and Performance.
Sileyew, K. J. (2019). Research design and methodology (pp. 1-12). Rijeka: IntechOpen.
Soelton, M., Noermijati, N., Rohman, F., & Mugiono, M. (2021). Conceptualizing the role of organizational performance in Indonesia. The Journal of Asian Finance, Economics and Business, 8(6), 1151-1160. 136
Soewarno, N., Mardijuwono, A. W., (2018). Mediating Effect of continuous improvements on management accounting innovations-information capital maturity levelorganizational performance relationships. Problems and Perspectives in Management, 16(3), 356-365.
Sundram, V. P. (2016). Research Methodology: Tools, Methods and Techniques: Malaysia Logistics and Supply Chain Association (MLSCA).
Tambe, P., & Hitt, L. M. (2014). Job hopping, information technology spillovers, and productivity growth. Management science, 60(2), 338-355.
Tippins, M. J., & Sohi, R. S. (2003). IT competency and firm performance: is organizational learning a missing link? Strategic management journal, 24(8), 745-761.
Ul Hassan, M., Shaukat, S., Shakeel, M., & Imran, M. (2012). Interrelations between organizational culture, Innovation and employee performance: Evidence from banking sector of Pakistan. Pakistan Journal of Social Sciences, 32(2), 339-355.
Wan, Z. G. (2022). IEEE Network Network, IEEE. The Road to Industry 4.0 and Beyond: A Communications-, Information-, and Operation Technology Collaboration Perspective, 157-164.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Ariff Othman Omar, Sri Fatiany Abdul Kader Jailani, Syukrina Alini Mat Ali, Noor’ain Mohamad Yunus

This work is licensed under a Creative Commons Attribution 4.0 International License.
