The impact of information technology capability on firm performance; a focus on employeecustomer profit chain

Document Type : Research Paper

Authors

1 Ph.D. Student of Behavioral Management; Ferdowsi University of Mashhad; Faculty of Economic and Administrative Sciences

2 Assistant Professor of Industrial Management; Imam Sadiq (as) University; Faculty of Islamic Sciences and Management

Abstract

Employee-customer-profit(ECP) chain is one of the guidelines for organizations
‘success in their life cycle. Strong relationships have been found between
employees' attitudes and behaviors, employees' behaviors and customers'
impressions, and customers' impressions and revenue growth. Out of this chain,
there are some factors that can influence the processes through which these factors
interact. One of these factors is information technology (IT) capability. In this
research, we modeled the effect of IT capability on ECP chain using structural
equation modeling (SEM). Service process innovation (SPI) was also used as a
mediating variable between IT capability and ECP chain. This was accomplished
based upon quantitative data gathered from a sample of 212 employees of the
Technical and Vocational organization in Mashhad city. Results revealed a strong
support for the proposed model. In particular, the association between IT capability
and SPI with ECP chain and their leverage effect facilitate the organizations'
movements along with the chain which was significantly confirmed.

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Interdisciplinary Journal of Management Studies
Volume 7, Issue 1 - Serial Number 1
Iranian Journal of Management Studies
January 2014
Pages 95-120

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