The Impact of Information Technology on Organizational Performance: The Mediating Effect of Organizational Learning

This study aims to examine OL as a potential mediating variable in the relationship between IT and organizational performance. Organizational learning (OL) has been proposed as the mechanism to accomplish this task. Existing empirical research demonstrates that OL may indeed act as a mediator for the effect of IT on organizational outcomes. Also, existing literature discusses the use of technology in the organization, and the case for OL as the key knowledge process, and the intersection between technology and OL as a knowledgebased means for improving organizational performance. Many studies use a descriptive measure of OL despite the theory suggesting that a normative measure may be more appropriate. This study aims to address these concerns in a setting by using structural equation modelling (SEM) to compare the effectiveness of descriptive and normative measures of OL as mediating variables in knowledge-intensive organizations. Survey results support OL as a mediator between IT and organizational performance in addition to normative measures of OL outperforming descriptive measures. Implications for research and practice are discussed. To test the model, we will apply (SEM) structural equation modeling in the analysis of a moment structures (AMOS) on the empirical evidence collected from 218 Pakistani CEOs and top managers.