The impact of information technology capability on firm performance; a focus on employeecustomer profit chain

Employee-customer-profit(ECP) chain is one of the guidelines for organizations‘success in their life cycle. Strong relationships have been found betweenemployees' attitudes and behaviors, employees' behaviors and customers'impressions, and customers' impressions and revenue growth. Out of this chain,there are some factors that can influence the processes through which these factorsinteract. One of these factors is information technology (IT) capability. In thisresearch, we modeled the effect of IT capability on ECP chain using structuralequation modeling (SEM). Service process innovation (SPI) was also used as amediating variable between IT capability and ECP chain. This was accomplishedbased upon quantitative data gathered from a sample of 212 employees of theTechnical and Vocational organization in Mashhad city. Results revealed a strongsupport for the proposed model. In particular, the association between IT capabilityand SPI with ECP chain and their leverage effect facilitate the organizations'movements along with the chain which was significantly confirmed.