Investigating information processing paradigm to predict performance in emerging firms: the mediating role of technological innovation

Abstract

Purpose This paper aims to investigate the influence of the information processing paradigm (information sharing and quality) on firm performance using organizational information processing theory (OIPT) in emerging marketing. This research also pursues to explore the underpinning mediation mechanism of technological innovation in the association between the information processing paradigm and firm performance. Design/methodology/approach Using the survey method, this study recruited 331 textile SME entrepreneurs and validated the proposed model and hypotheses in AMOS. Findings The outcomes reveal that information sharing, information quality and technological innovation are positively related to firm performance, while technological innovation mediates the association between the information processing paradigm (i.e. information sharing and information quality) and firm performance. Practical implications The findings enable the firms to bring technological innovation and realize the best performance by seeking and sharing valuable information across the firm. The managers should ensure a culture of quality information sharing, improve coordination among departments and discourage irrelevant/fake information. Such practices are beneficial for firm decision-makers when formulating business plans and focusing on communication mechanisms that will assist them in attaining higher innovation levels and firm performance. Originality/value This paper theoretically and empirically contributes to examining the influence of the information processing paradigm on firm performance, which was ignored in information and performance management literature. Moreover, to the best of the author’s knowledge, this is the first study that investigates the mediation mechanism between the information processing paradigm and firm performance.