Effect Of Information Technology Infrastructure Flexibility On Competitive Advantage And Organizational Performance

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Abstract

In our country, government has recently invested many investments in part of Information Technology. Researchers have taken note of the potential efficiency and effectiveness of those investments. IT infrastructure expenditure accounts for over 58 percent of an organization's IT budgets. This research objective is: design a model for effect of flexible IT infrastructure on competitive advantage and organizational performance. For achieving this objective, a research model is presented after literature review. Model includs three construct of flexible IT infrastructure (three latent variables: flexible IT personnel, integration, modularity), competitive advantage (five latent variables: time to market, price/cost, quality, product innovation, delivery dependability), and organizational performance (two latent variables: market and financial performance). Based on research model, questionnaire was designed for measurement of observed variables. Questionnaires are posted to companies. Then, questionnaires are gathered and acquired 256 proper questionnaires. Data based on hypothesis are analyzed by LISREL version 8.54. Results showed that all of model indices are significant and flexibility of IT infrastructure is effective in competitive advantage and organizational performance, and competitive advantage also affects on organizational performance.

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