Information Technology Competencies: A Performance Booster for Organizations

The purpose of this study is to examine the influence of information technology competencies on financial performance, followed by organizational performance. The primary data collection technique was used to collect the data from 165 IT officers and top managers from Pakistan. Structural equation...

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Main Authors: Syed Zain ul Abdin, Ali Junaid Khan, Shahzad Ali Gill, Tanveer Ahmed
Format: Article
Language:English
Published: International Research Alliance for Sustainable Development - iRASD 2021-12-01
Series:iRASD Journal of Management
Subjects:
Online Access:https://www.journals.internationalrasd.org/index.php/jom/article/view/551
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author Syed Zain ul Abdin
Ali Junaid Khan
Shahzad Ali Gill
Tanveer Ahmed
author_facet Syed Zain ul Abdin
Ali Junaid Khan
Shahzad Ali Gill
Tanveer Ahmed
author_sort Syed Zain ul Abdin
collection DOAJ
description The purpose of this study is to examine the influence of information technology competencies on financial performance, followed by organizational performance. The primary data collection technique was used to collect the data from 165 IT officers and top managers from Pakistan. Structural equation modelling was applied using Smart PLS 3 to examine the hypothesized model. The direct findings reveal that all three components of IT competencies are statistically significant in organizational performance. Among the three components, information technology infrastructure is the strongest predictor of organizational performance. Further, organizational performance is statistically significant in determining financial performance. There are no direct significant influences of IT competencies toward financial performance. Indirect results show that all three components of IT competencies are statistically significant. IT infrastructure is the strongest predictor of financial performance through organizational performance. Moreover, this study reveals that IT competencies are not merely sufficient to maintain financial performance. Additionally, the firm is also required to focus on complementary indicators such as innovation, quality, customer satisfaction, customer retention, and reduction of operating cost—which are generated by proper utilization of IT competencies.
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institution OA Journals
issn 2709-8443
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language English
publishDate 2021-12-01
publisher International Research Alliance for Sustainable Development - iRASD
record_format Article
series iRASD Journal of Management
spelling doaj-art-d30f856414e54d42be29921d5c5cc8d12025-08-20T01:53:16ZengInternational Research Alliance for Sustainable Development - iRASDiRASD Journal of Management2709-84432709-84512021-12-013310.52131/jom.2021.0303.0054Information Technology Competencies: A Performance Booster for OrganizationsSyed Zain ul Abdin0Ali Junaid Khan1Shahzad Ali Gill2Tanveer Ahmed3The Islamia University of Bahawalpur, PakistanThe Islamia University of Bahawalpur, PakistanThe Islamia University of Bahawalpur, PakistanNational College of Business Administration & Economics, Lahore, Pakistan The purpose of this study is to examine the influence of information technology competencies on financial performance, followed by organizational performance. The primary data collection technique was used to collect the data from 165 IT officers and top managers from Pakistan. Structural equation modelling was applied using Smart PLS 3 to examine the hypothesized model. The direct findings reveal that all three components of IT competencies are statistically significant in organizational performance. Among the three components, information technology infrastructure is the strongest predictor of organizational performance. Further, organizational performance is statistically significant in determining financial performance. There are no direct significant influences of IT competencies toward financial performance. Indirect results show that all three components of IT competencies are statistically significant. IT infrastructure is the strongest predictor of financial performance through organizational performance. Moreover, this study reveals that IT competencies are not merely sufficient to maintain financial performance. Additionally, the firm is also required to focus on complementary indicators such as innovation, quality, customer satisfaction, customer retention, and reduction of operating cost—which are generated by proper utilization of IT competencies. https://www.journals.internationalrasd.org/index.php/jom/article/view/551IT competencyFinancial performanceOrganizational performancePakistanSmartPLS
spellingShingle Syed Zain ul Abdin
Ali Junaid Khan
Shahzad Ali Gill
Tanveer Ahmed
Information Technology Competencies: A Performance Booster for Organizations
iRASD Journal of Management
IT competency
Financial performance
Organizational performance
Pakistan
SmartPLS
title Information Technology Competencies: A Performance Booster for Organizations
title_full Information Technology Competencies: A Performance Booster for Organizations
title_fullStr Information Technology Competencies: A Performance Booster for Organizations
title_full_unstemmed Information Technology Competencies: A Performance Booster for Organizations
title_short Information Technology Competencies: A Performance Booster for Organizations
title_sort information technology competencies a performance booster for organizations
topic IT competency
Financial performance
Organizational performance
Pakistan
SmartPLS
url https://www.journals.internationalrasd.org/index.php/jom/article/view/551
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AT alijunaidkhan informationtechnologycompetenciesaperformanceboosterfororganizations
AT shahzadaligill informationtechnologycompetenciesaperformanceboosterfororganizations
AT tanveerahmed informationtechnologycompetenciesaperformanceboosterfororganizations