The Impact of Information Technology Capability, Business Intelligence Use and Collaboration Capability on Organizational Performance among Public Listed Companies in Malaysia

Purpose: In today's dynamic business environment, organizations face new issues and challenges which increase the needs to utilize organizational capabilities in ensuring sustainable performance. This study examines the impact of key organizational capabilities of information technology (IT) ca...

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Bibliographic Details
Published in:Global business and management research 2018-01, Vol.10 (1), p.293-312
Main Authors: Ping, Teoh Ai, Chinn, Chong Voon, Yin, Lim Yu, Muthuveloo, Rajendran
Format: Article
Language:English
Subjects:
Business intelligence
Collaboration
Competitive advantage
Economic crisis
Economic growth
Expenditures
Information management
Information technology
Management decisions
Operations management
Performance management
Questionnaires
Response rates
Securities markets
Supply chains
Technology adoption
Volatility
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Summary:Purpose: In today's dynamic business environment, organizations face new issues and challenges which increase the needs to utilize organizational capabilities in ensuring sustainable performance. This study examines the impact of key organizational capabilities of information technology (IT) capability, business intelligence (BI) use and collaboration capability on organizational performance among Public Listed Companies (PLCs) in Bursa Malaysia. In the context of today's business dynamism, the moderating role of environmental volatility and the mediating role of strategic agility are also investigated. Design/methodology/approach: A total of 103 usable responses were collected via mailed questionnaires addressed at Chief Executive-level officers of the companies in Bursa Malaysia. The responses were subsequently analyzed using SmartPLS software to test the hypotheses. Findings: The findings indicate that business intelligence use and collaboration capability are crucial predictors affecting organizational performance among PLCs in an emerging market, Malaysia. However, information technology capability does not impact organizational performance. Interestingly, strategic agility mediates the relationship between information technology capability, business intelligence use on organizational performance, but environmental volatility does not moderate the relationships. Research limitations/implications: The response rate was relatively low as only about 13% of the population responded. However, this is the common response rate for studies undertaken questionnaires surveys to obtain responses from Malaysian PLCs. This study selected only PLCs from Main Board of Bursa Malaysia as the targeted respondents. Thus, caution is needed when applying the findings to other types of organizations such as public sector, Small Medium Size Enterprises and Multinational corporations. Nevertheless, this study has significant research implications in contributing to the body of knowledge in organizational performance. Practical implications: The results from this study contributes practically to the management of PLCs in Malaysia and other emerging countries as it promotes greater insights into the crucial organization resources and capabilities of information technology, business intelligence use and collaboration on organizational performance. Furthermore, this study reminds the practitioners of the strategic element of agility which mediates IT capability and Business Inte
ISSN:1947-5667