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IT competency and firm performance: is organizational learning a missing link?
Author(s) -
Tippins Michael J.,
Sohi Ravipreet S.
Publication year - 2003
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/smj.337
Subject(s) - order (exchange) , knowledge management , organizational learning , business , investment (military) , structural equation modeling , resource (disambiguation) , resource based view , organizational performance , industrial organization , marketing , computer science , competitive advantage , finance , computer network , machine learning , politics , political science , law
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.