Information system capabilities and firm performance: Opening the black box through decision-making performance and business-process performance

Abstract

This study contributes to the extant literature on information management by investigating the interrelationships between information systems (IS)-related capabilities and their effects on firm performance. Using the resource-based view (RBV), a set of hypotheses is formulated to examine these links, considering the role that may be played by decision-making performance and business-process performance as mediating variables. Structural equation modeling (SEM) has been applied to a sample of 204 firms in Turkey. The test results obtained confirm the proposed serially mediating model according to which decision-making performance and business-process performance play a critical mediating role in the human resource and administrative-related IS capabilities, and firm-performance relationships. No support, however, has been found concerning the serial mediation effect between infrastructure-related IS capabilities and firm performance.