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

Authors

  • Laith Walid Fatafta University of Jordan, Amman, Jordan
  • Bader Obeidat University of Jordan http://orcid.org/0000-0002-1335-4057
  • Ashraf Bany Mohammed The University of Jordan, Amman, Jordan
  • Raed Kareem Kanaan, Dr. Amman Arab University, Amman, Jordan

DOI:

https://doi.org/10.25255/jss.2019.8.3.456.480

Keywords:

Information technology, quality management capabilities, organizational performance, Jordanian pharmaceutical companies

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.

Downloads

Download data is not yet available.

References

Aldmour, R., Hammdan, F., Dmour, H., Alrowwad, A., and Khwaldeh, S. (2017). The Effect of Lifestyle on Online Purchasing Decision for Electronic Services: The Jordanian Flying E-Tickets Case. Asian Social Science, 13(11), 157-169.

Alenezi, H., Tarhini, A., and Masa'deh, R. (2015). Investigating the Strategic Relationship between Information Quality and E-Government Benefits: A Literature Review. International Review of Social Sciences and Humanities, 9(1), 33-50.

Alenezi, H., Tarhini, A., Alalwan, A., & Al-Qirim, N. (2017). Factors Affecting the Adoption of E-Government in Kuwait: A Qualitative Study. Electronic Journal of e-Government, 15(2), 84-102.

Allison, P. (1999). Multiple Regression: A Primer. Thousand Oaks, Pine Forge Press, CA.Analysis, (7th ed.). Pearson, Upper Saddle River, NJ.

Al-Shaikh, M.S., Torres, I.M., Zuniga, M.A., and Ghunaim, A. (2011). Jordanian Pharmaceutical Companies: Are their Marketing Efforts Paying off?. Health Marketing Quarterly, 28(2), 174-189.

Altamony, H., Alshurideh, M., & Obeidat, B. (2012). Information Systems for Competitive Advantage: Implementation of an Organizational Strategic Management Process. Proceedings of the 18th IBIMA Conference on Innovation and Sustainable Economic Competitive Advantage: From Regional Development to World Economic, Istanbul, Turkey, 9th-10th May.

Ang, C.L., Davies, M., and Finlay, P.N. (2000). Measures to Assess the Impact of Information Technology on Quality Management. International Journal of Quality & Reliability Management, 17(1), 42-66.

Baron, R.M., and Kenny, D. (1986). The Moderator-Mediator Variable Distinction in Social Psychological Research: Conceptual, Strategic, and Statistical Considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182.

Bhatt, G.D. (2001). Business Process Improvement through Electronic Data Interchange (EDI) Systems: An Empirical Study. Supply Chain Management: An International Journal, 6(2), 60-74.

Biesanz, J.C., Falk, C.F., and Savalei, V. (2010). Assessing Mediational Models: Testing and Interval Estimation for Indirect Effects. Multivariate Behavioral Research, 45(4), 661-701.

Chandler, K. (1998). Quality in the Age of the Networked Society. Quality Progress, 31(1), 49.

Chavez, R., Yu, W., Jacobs, M.A., and Feng, M. (2017). Manufacturing Capability and Organizational Performance: The Role of Entrepreneurial Orientation. International Journal of Production Economics, 184, 33-46.

De Toni, A.F., Fornasier, A., and Nonino, F. (2015). The Impact of Implementation Process on the Perception of Enterprise Resource Planning Success. Business Process Management Journal, 21(2), 332-352.

Gay, L.R., and Airasian, P. (2000). Educational Research, (6th ed.). Columbus, OH: 169.

Hair, G. Black, B. Babin, B. Anderson, R. and Tatham, R. (2009). Multivariate Data Analysis, (7th ed.).

Hajli, M., Sims, J.M., and Ibragimov,V. (2015). Information Technology (IT) Productivity Paradox in the 21st Century. International Journal of Productivity and Performance Management, 64(4), 457-478.

Jahanshahi, A. (2016). Disentangling the Emergence of Perceived Environmental Uncertainty among Technology Entrepreneurs. Kybernetes, 45(6), 962-976.

Kanaan, R., & Masa'deh, R. (2018). Increasing Citizen Engagement and Participation through eGovernment in Jordan. Modern Applied Science, 12(11), 225-231.

Karajeh, H., & Maqableh, M. (2014). Security of Cloud Computing Environment. The 23rd IBIMA Conference on Vision 2020: Sustainable Growth, Economic Development, and Global Competitiveness, USA, 2202-2215.

Khwaldeh, S., Al-Hadid, I., Masa'deh, R., & Alrowwad, A. (2017). The Association between E-Services Web Portals Information Quality and ICT Competence in the Jordanian Universities. Asian Social Science, 13(3), 156-169.

Kasiri, L.A., Cheng, K.T.G., Sambasivan, M., and Sidin, S.M. (2017). Integration of Standardization and Customization: Impact on Service Quality, Customer Satisfaction, and Loyalty. Journal of Retailing and Consumer Services, 35, 91-97.

Kelsey, P. (2015). Implementing EDIX12 Book Acquisitions at a Medium-Sized University Library. New Library World, 116(7/8), 383-396.

Lai, F., Zhao, X., and Wang, Q. (2006). The Impact of Information Technology on the Competitive Advantage of Logistics Firms in China. Industrial Management & Data Systems, 106(9), 1249-1271.

Lakhal, L., Pasin, F., and Limam, M. (2006). Quality Management Practices and their Impact on Performance. International Journal of Quality & Reliability Management, 23(6), 625-646.

Li, D., Zhao, Y., Zhang, L., Chen, X., and Cao, C. (2018). Impact of Quality Management on Green Innovation. Journal of Cleaner Production, 170, 462-470.

MacKinnon, D.P., Fairchild, A.J. and Fritz, M.S. (2007). Mediation Analysis. Annual Review of Psychology, 58, 593-614.

Malik, A., Sinha, A., and Blumenfeld, S. (2012). Role of Quality Management Capabilities in Developing Market-based Organisational Learning Capabilities: Case Study Evidence from Four Indian Business Process Outsourcing Firms. Industrial Marketing Management, 41(4), 639-648.

Mandal, S. (2015). An Empirical-Relational Investigation on Supply Chain Responsiveness. International Journal of Logistics Systems and Management, 20(1), 59-82.

Middleton, K., Peh, W., Southern, S., Griffin, H., Sotlar, K., Nakahara, T., ...and Jenkins, D. (2003). Organization of Human Papillomavirus Productive Cycle during Neoplastic Progression provides a Basis for Selection of Diagnostic Markers. Journal of Virology, 77(19), 10186-10201.

Mjema, E.A.M., Victor, M.A.M., and Mwinuka, M.S.M. (2005). Analysis of Roles of IT on Quality Management. The TQM Magazine, 17(4), 364-374.

Narayanan, S., Narasimhan, R., and Schoenherr, T. (2015). Assessing the Contingent Effects of Collaboration on Agility Performance in Buyer–Supplier Relationships. Journal of Operations Management, 33, 140-154.

Nunnally, J. (1978). Psychometric Theory (2nd ed.), McGraw-Hill, NY.

Oly Ndubisi, N., Kok Wah, C., and Ndubisi, G.C. (2007). Supplier-Customer Relationship Management and Customer Loyalty: The Banking Industry Perspective. Journal of Enterprise Information Management, 20(2), 222-236.

Patyal, V.S., and Maddulety, K. (2015). Interrelationship between Total Quality Management and Six Sigma: A Review. Global Business Review, 16(6), 1025-1060.

Pehrsson, A. (2014). Firms' Customer Responsiveness and Performance: The Moderating Roles of Dyadic Competition and Firm's Age. Journal of Business & Industrial Marketing, 29(1), 34-44.

Power, D. (2014). Competence and Capability in Quality in the High-tech Sector: An International Comparison. International Journal of Operations & Production Management, 34(9), 1184-1209.

Rodríguez-Escobar, J.A., and González-Benito, J. (2015). The Role of Information Technology in Purchasing Function. Journal of Business & Industrial Marketing, 30(5), 498-510.

Sanchez-Rodriguez, C., and Rafael Martinez-Lorente, A. (2011). Effect of IT and Quality Management on Performance. Industrial Management & Data Systems, 111(6), 830-848.

Sekaran, U., and Bougie, R.J. (2016). Research Methods for Business: A Skill Building Approach (7th ed). John Wiley & Sons.

Shatat, S., and Udin, M. (2012). The Relationship between ERP System and Supply Chain Management Performance in Malaysian Manufacturing Companies. Journal of Enterprise Information Management, 25(6), 576-604.

Tabachnick, B., and Fidell, L. (2007). Using Multivariate Statistics, (6th ed.), Boston: Allyn and Bacon.

Tan, K., Kannan,V.R., Hsu, C.C., and Leong, G. (2010). Supply Chain Information and Relational Alignments: Mediators of EDI on Firm Performance. International Journal of Physical Distribution & Logistics Management, 40(5), 377-394.

Tarhini, A., Al-Badi, A., Almajali, M., & Alrabayaah, S. (2017a). Factors Influencing Employees’ Intention to Use Cloud Computing. Journal of Management and Strategy, 8(2), 47.

Tarhini, A., Al-Busaidi, K., Bany Mohammed, A., & Maqableh, M. (2017b). Factors Influencing Students' Adoption of E-Learning: A Structural Equation Modeling Approach. Journal of International Education in Business, 10(2), 164-182.

Tarhini, A., Mgbemena, C., & Trab, MSA. (2015). User Adoption of Online Banking in Nigeria: A Qualitative Study. Journal of Internet Banking and Commerce, 20(3), 1-8.

Tseng, S.M., and Wu, P.H. (2014). The Impact of Customer Knowledge and Customer Relationship Management on Service Quality. International Journal of Quality and Service Sciences, 6(1), 77-96.

UPA (2015). Testing Mediation with Regression Analysis. Available from: http://www.upa.pdx.edu/IOA/newsom/da2/ho_mediation.pdf [Accessed December 2015].

Wai, L., Seebaluck, A., and Teeroovengadum, V. (2011). Impact of Information Technology on Quality Management Dimensions and its Implications. European Business Review, 23(6), 592-608.

Williams, B., Brown, T., and Onsman, A. (2010). Exploratory Factor Analysis: A Five-Step Guide for Novices. Australasian Journal of Paramedicine, 8(3), 1-13.

Winniford, M., Conger, S., and Erickson-Harris, L. (2009). Confusion in the Ranks: IT Service Management Practice and Terminology. Information Systems Management, 26(2), 153-163.

Xia, Y., Singhal, V.R., and Zhang, G. (2015). Product Design Awards and the Market Value of the Firm. Production and Operations Management, 25(6), 1038-1055.

Yassien, E., & Mufleh, M. (2017). The Impact of ERP System's Usability on Enterprise Resource Planning Project Implementation Success via the Mediating Role of User Satisfaction. Journal of Management Research, 9(3), 49-71.

Downloads

Published

2019-07-01

How to Cite

Fatafta, L. W., Obeidat, B., Bany Mohammed, A., & Kanaan, R. K. (2019). The Effect of Information Technology on Organizational Performance: The Mediating Role of Quality Management Capabilities. Journal of Social Sciences (COES&Amp;RJ-JSS), 8(3), 456–480. https://doi.org/10.25255/jss.2019.8.3.456.480

Most read articles by the same author(s)