A study of the impact of learning organization on performance of IT organizations: an investigation using second-order SEM

Purpose In the present competing environment, it is essential to understand how some information technology (IT) organizations do well and outperform others. This paper aims to assess the impact of the learning disciplines proposed by Peter Senge (1990) on the performance of IT organizations. The study also aims to find the impact of “type” and “size” of the organization on its performance. Design/methodology/approach The study uses a quantitative survey research design based on the learning organization (LO) theory. The study has engaged a purposive sampling method. Responses were gathered from 171 employees from different IT services and IT product organizations. Data analysis was done using structural equation modeling (SEM) with AMOS 21 software. Findings The findings of SEM indicate that learning IT organizations have a positive impact on their performance. Confirmatory factor analysis showed that the first-order construct model as well as the second-order construct model have acceptable fit, indicating that mental models, personal mastery, shared vision, systems learning and team learning are good indicators of LO. It was also found that adaptive performance, contextual performance and task performance are good indicators of organizational performance (OP). The moderation effect of the “size of IT organization” was insignificant and the moderation effect of “type of IT organization” was found to be significant in the study of the relationship of LO on OP for the IT product organizations. Research limitations/implications This research gains significance as it has empirically tested and validated two theoretical models for IT organizations. The result of this study is expected to aid IT organization management with guidelines for learning, leading to improved performance. Originality/value This study focuses on the ability of the learning IT organization to perform well and grow. It is an outcome of independent and original work and is free from any plagiarism. This study has not been submitted elsewhere for publication.