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

Abstract

Many companies have developed strategies that include investing heavily in information technology (IT) in order to enhance their performance. Yet, this investment pays off for some companies but not others. This study proposes that organization learning plays a significant role in determining the outcomes of IT. Drawing from resource theory and IT literature, the authors develop the concept of IT competency. Using structural equations modeling with data collected from managers in 271 manufacturing firms, they show that organizational learning plays a significant role in mediating the effects of IT competency on firm performance. Copyright © 2003 John Wiley & Sons, Ltd.

Organizational Learning Supported by Reference Architecture Models: Industry 4.0 Laboratory Study

“…At its most basic level, organizational learning is "the process by which new knowledge or insights are developed by a firm" [2]. In organizational learning literature, this process is generally perceived as four sub processes [3]: information acquisition, information dissemination, shared interpretation, and development of organizational memory.…”

“…First, the information acquisition process allows an organization to actively look for and gather useable information [2]. For this sub process there are three distinct sources [3]: direct experience, experience of others, and organization's own memory mechanisms.…”

“…For this sub process there are three distinct sources [3]: direct experience, experience of others, and organization's own memory mechanisms. Once information is acquired by the organization, through the information dissemination process it is "distributed to those individuals who need it in order for the learning process to be effective" [2]. After the information is disseminated, consensus as to the meaning of the information evolves in the organization [2].…”

“…Once information is acquired by the organization, through the information dissemination process it is "distributed to those individuals who need it in order for the learning process to be effective" [2]. After the information is disseminated, consensus as to the meaning of the information evolves in the organization [2]. This process, known as the shared interpretation process, refers to the presence of consensus among organizational members with regard to the meaning of information [3].…”

“…Organizational learning is intended as "the process by which new knowledge or insights are developed by a firm" [2]. It is divided in four consecutive sub processes: information acquisition, information dissemination, shared interpretation, and development of organizational memory [3].…”