IT capability, capital availability and firm performance

Abstract

Information technology capability (ITC) enhances firm performance, reflecting the constructs' positive relation. Namely ICT enables continual improvements in uncertain environments, despite its extant shortcomings. This article assesses the role that ITC plays in firm performance, mediated by capital availability and sustainable competitive position (SCP). Research hypotheses are tested through structural equation modeling, using the analysis moments of structure (AMOS) statistical software, applied on the data collected from 316 small and medium enterprises (SMEs) in Pakistan, through a structured questionnaire. The results show that ITC might significantly contribute to SCP and firm performance, wherein capital availability and SCP play their mediating roles, strengthening the positive relation between ITC and SCP. These relations' unconcealment suggests that owners, managers and partners of SMEs and other policymakers must promote ITC's self-development, in order to effectively enhance financial capital productivity and to achieve superior performance in turbulent markets. The results generalizability is restricted to SMEs in Pakistan, yet it would be challenging to explore this study's relations in other emerging economies. Most encouraged are researchers willing to test the study's model in other industries, especially in non-profit organizations in developed and emerging economies, in order to expedite ITC's potential contribution to firm performance.

The impact of technological alignment and advancement on firms’ project performance with mediating role of technology acceptance model1

“…Technology advancement is an important incident of the different performance of the organizations [40,41]. Over the past decades, several researchers explored the impact of technology integration and revealed the positive connection on organizational performance [1,40,41]. The study of [41] concluded the positive relationships between technology and organizational performance.…”

“…The study of [41] concluded the positive relationships between technology and organizational performance. A study of [42] unveiled the significant relationships between technology and project performance in terms of R&D. In general, there are several studies that have recommended the positive connection between the integration of technology and organizational performance as well as encourages the organizational to advance its technological capabilities [1,14,39,41]. However, the literature is witnessed that there is still lack of known studies that examined the connection of technological advancement (TAD) on organizational project performance (OPP).…”

“…Technology has become an essential part of all business operations which supports enhancing a firm's performance in today's modern era [1,2]. The living standards of humans also have been transformed toward flouring means of information communication technologies to interact with each other [2,3].…”

“…According to Memon, An [1], incorporation of information technology improves the performance of the organizations. Technology is a prime source for business processes in order to survive in today's digital and dynamic world [9].…”

The status quo of digital transformation in China: A pilot study

“…All of the functional and process strategies are encompassed under the digital transformation strategy, with a close focus on policy and the competitive environment. For most firms, digital transformation is initiated at an early stage, and their strategic goals are to improve internal operation efficiency and reduce operation costs, so as to improve their competitiveness [31]. For the time being, most companies still need a long time to complete their digital transformation.…”