This study investigates the influencing mechanism between IT capabilities and firm’s performance. We believe that business process is the principal factor and suggest that IT capabilities improve business process and subsequently enhance firm’s performance. The study of the underlying factors among IT capabilities, business performance, and firm’s performance is considered rare and although some researchers have introduced conceptual models and empirical tests, they are not able to support the cumulative model. It is found out that IT capabilities have a significant and positive relationship to firm’s performance. Besides, business process re-engineering and process efficiency contribute more to this relationship by mediating effect. This study will benefit business researchers, strategic researchers and managers in various industries because this will contribute to a better understanding of IT capabilities, business process, and firm’s performance to a greater extent and provide fundamentals for strategic decisions in IT investments of a firm.
|International Journal of Technology Transfer and Commercialisation
|Accepted/In press - 3 Jun 2021