The Influence of Information Technology Investment on the Organizational Performance: The Moderating Role of External Environment

In the information era, enterprises can enhance organizational performance through advanced information technology. Based on the resource-based view, this paper examines the mechanism by which information technology (IT) investment influences organizational performance, with the external environment as a moderating variable. Using 265 valid samples collected from agricultural enterprises in Shandong province, this study conducts an empirical test through partial least squares structural equation modeling. The results demonstrate that IT investment has a significant positive effect on organizational performance, and the external environment significantly moderates the relationship between IT investment and organizational performance. This research contributes to a deeper understanding of the relationship between IT investment and organizational performance, enriches resource-based theory, expands the research framework on IT investment, and offers guidance for enterprises seeking sustainable growth.

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Publication Details

Journal
Proceedings of Business and Economic Studies
Published
2024-10-22
DOI
https://doi.org/10.26689/pbes.v7i5.8600
Primary Topic
Technology Adoption and User Behaviour
Type
article
Field-Weighted Citation Impact
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article

The Influence of Information Technology Investment on the Organizational Performance: The Moderating Role of External Environment

Zhilin Shi, Simon Choong Mun Kwong
Proceedings of Business and Economic Studies
Technology Adoption and User Behaviour
article

The Influence of Information Technology Investment on the Organizational Performance: The Moderating Role of External Environment

Zhilin Shi, Simon Choong Mun Kwong
article en

Abstract

In the information era, enterprises can enhance organizational performance through advanced information technology. Based on the resource-based view, this paper examines the mechanism by which information technology (IT) investment influences organizational performance, with the external environment as a moderating variable. Using 265 valid samples collected from agricultural enterprises in Shandong province, this study conducts an empirical test through partial least squares structural equation modeling. The results demonstrate that IT investment has a significant positive effect on organizational performance, and the external environment significantly moderates the relationship between IT investment and organizational performance. This research contributes to a deeper understanding of the relationship between IT investment and organizational performance, enriches resource-based theory, expands the research framework on IT investment, and offers guidance for enterprises seeking sustainable growth.

Proceedings of Business and Economic StudiesVol. 7(5)
Shandong University of Aeronautics (CN), City University Malaysia (MY)
Openalex Percentile: Top 79%
Technology Adoption and User Behaviour
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The Influence of Information Technology Investment on the Organizational Performance: The Moderating Role of External Environment — Zhilin Shi, Simon Choong Mun Kwong · Proceedings of Business and Economic Studies (2024) | TGRS Research Map | TGRS