Impact of ICT-based innovations on organizational performance

Abstract

Purpose Research has shown that information and communication technologies (ICT) are crucial for economic growth. The purpose of this paper is to develop a framework that would depict and examine the nature of the relationship between ICT use and organizational performance in the Lebanese market, taking into consideration the impact that innovation and corporate entrepreneurship may have on this relationship. Design/methodology/approach To investigate the proposed model a survey targeting employees, and managers who adopted ICT applications in SMEs located in Lebanon was conducted. Findings The results indicate that ICT and innovation are strategic resources. However, their contribution to sustainable competitive advantage vitally depends on the implicitness and entrepreneurial behaviors of those involved. It is through this capability that ICT and ICT-based innovations could make a difference in organization’s performance – both present and future. Research limitations/implications First, the respondents were selected using the convenience sampling technique. Second, the data were collected through self-report questionnaires. Finally, the use of perceptual data related to performance may have a bias effect on the study results. Practical/implications At the practical level, the study results have repercussions for managers, technology suppliers, and innovation adopters and managers, as this may contribute to better understanding of the factors that could influence the adoption, management, and use of ICT resources for enhancing the competitiveness level of the firm. Originality/value The results of this study have implications for ICT adoption in Lebanese SMEs. More importantly, they suggest a framework which depicts the relationship between ICT and the organization’s innovation level on one hand, and a company’s performance on the other, taking entrepreneurship as a mediator in this relationship.