THE EFFECTS OF RELATIONSHIP BETWEEN INFORMATION TECHNOLOGY AND FIRM INNOVATION ON FIRM PERFORMANCE: THE CASE OF ALBANIA

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Abstract:

The aim of this study is to research the relationship between information technology IT, organizational learning, firm innovation and firm performance. For this study we developed a research model which includes IT practices, internal benefits of IT, organizational learning, dynamic benefits of IT, firm innovation and performance. For this reason, the data was obtained from a sample of 87 people who work in 18 different sectors. Results from our regression analysis were separated for each variable, and we found that IT practices, the internal benefits of IT, organizational learning, dynamic benefits of IT and firm innovation have a statistically significant effect on firm performance. However, with multiple regression analysis we saw that these variables, except firm innovation, do not have a statistically significant effect on the firm performance. So, we discovered that the result of firm innovation has a moderating effect between IT practices, internal benefits of IT, organizational learning, dynamic benefits of IT and firm performance. If the IT practices, internal benefits of IT, organizational learning, and dynamic benefits of IT are positive, firm innovation and performance will also be positive.

Keywords: Firm performance; information technology; innovation; organizational learning

Document Type: Research Article

DOI: http://dx.doi.org/10.5848/APBJ.2012.00023

Publication date: January 1, 2012

More about this publication?
  • The International Journal of Management Cases (IJMC) developed in 2002 from its predecessor The Journal of Management Cases, and present case studies across a broad range of management disciplines. The IJMC is the official journal of the CIRCLE Research Centre. CIRCLE (Centre for International Research Consumers, Locations and their Environments) is a virtual research group spreading over 70 universities.
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