The Effect of Information Technology on Organizational Performance: The Mediating Role of Quality Management Capabilities

Laith Walid Fatafta, Bader Obeidat, Ashraf Bany Mohammed and Raed Kareem Kanaan
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Laith Walid Fatafta: Department of Business Management, School of Business, The University of Jordan, Amman, Jordan
Bader Obeidat: Department of Business Management, School of Business, The University of Jordan, Amman, Jordan
Ashraf Bany Mohammed: School of Business, The University of Jordan, Amman, Jordan
Raed Kareem Kanaan: Amman Arab University, Amman, Jordan

Journal of Social Sciences (COES&RJ-JSS), 2019, vol. 8, issue 3, 456-480

Abstract: This study aims to investigate the effect of information technology on organizational performance in Jordanian pharmaceutical companies, and whether quality management capabilities mediate the effect of information technology on organizational performance. Adopting a quantitative research design, data was collected by means of a questionnaire-based survey of employees in Jordanian pharmaceutical companies. Based on 338 usable responses, the results revealed a significant effect of information technology and one of its dimensions (enterprise resource planning) on organizational performance. The Other dimension (electronic data interchange) did not contribute to quality management capabilities. Additionally, the results showed that information technology has a significant effect on quality management capabilities, and that quality management capabilities in turn affect organizational performance. The findings confirm that quality management capabilities partially mediate the effect of information technology on organizational performance. The study emphases that Jordanian pharmaceutical companies should improve and promote information technology methods and practices in order to improve their performance. Pharmaceutical companies should also consider improving their quality management capabilities, as this plays a significant role in enhancing and supporting the effect of information technology on organizational performance. This study states many recommendations for future researches, but the most important ones are to apply such a research on other sectors.

Keywords: Information technology; quality management capabilities; organizational performance; Jordanian pharmaceutical companies (search for similar items in EconPapers)
Date: 2019
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