Academic journal article Global Business and Management Research: An International Journal

The Impact of Information Technology Capability, Business Intelligence Use and Collaboration Capability on Organizational Performance among Public Listed Companies in Malaysia

Academic journal article Global Business and Management Research: An International Journal

The Impact of Information Technology Capability, Business Intelligence Use and Collaboration Capability on Organizational Performance among Public Listed Companies in Malaysia

Article excerpt

Introduction

In today's dynamic business environment, organizations are facing new encounters, such as intense competition, technological change, and economic downturn which challenge top management to create value for shareholders. Organizational performance has been identified as an important criterion in evaluating results of the organization's operation utilizing rare resources and unique capabilities in responding to market opportunities and detecting threats (Thomas, 2014).

Financial crisis has shattered the Malaysia's economy and required few years to recover economy of Malaysia. Malaysia economy rebounded strongly with growth rates of between 4.1% and 7.1% in 2000 after the financial crisis in 1997 and 1998 but contracted 1.7% in 2009 after economy downturn between 2007 and 2008 (PricewaterhouseCoppers, 2013). Economy recovered in 2010 to 2012 with growth rates between 5.0% and 7.0%. The Malaysian capital market grew from a total size of RM717.5 billion in 2000 to RM2.0 trillion in 2010. From 2000, the stock market's capitalization grew by 11.1% on average annually and reach about RM1.3 trillion at the end of 2010, the stock market capitalization was 165% of nominal GDP respectively (Securities Commission, 2013). Stock market performance for public listed companies (PLCs) in Malaysia was positive in 2013 and expanded by 14.4% from RM1.67 trillion in 2016 to RM1.91 trillion in 2017 (Securities Commission, 2017). PLCs play an important role to contribute major part of economy in Malaysia as the nation's economy expanded and reached 5.6% in 2012 compared with 5.2% in 2011 (Yeap, 2013). In Forbes Global ranking 2013, 20 Malaysian listed companies become top 2,000 companies in the world based on four criteria which are sales, profit, assets and market value. PLCs has contributed significantly to the Malaysian economic growth (Sabariah & Norhafiza, 2013). Thus, it is important to study on the crucial factors that affect the organizational performance of Malaysian PLCs.

Malaysia is one of information technology (IT) hubs in the Asia region as the government announced to invest and develop Digital Malaysia Master Plan for Malaysia's ICT sector (Market Research, 2013). Malaysia IT spending is expected to reach US$5.6 billion in 2013, up 7% compare to the year of 2012 (Trading Economics, 2014). The plan stimulate organizations to focus ICT development for business expansion, indicating vital role of IT to enhance organizational performance. The growth of IT and business intelligence (BI) becomes central in business operating in fast-changing environment alongside Industrial Revolution 4.0. Information technology capability integrates with BI use to enable IT flexibility and competitive information towards enhancing performance (Ravichandran & Lertwongsatein, 2005; Teoh, Muthuveloo & Lim, 2014). The ability of organizations to exchange information is viewed as a key to survive in global business environment. Hence, collaboration has been a capability to achieve business goals when working across boundaries (Eisenhardt & Martin, 2000; Allred, Fawcett, Wallin & Magnan; 2011). Public listed companies are recognized as the backbone of the country's globalized economy, hence organizations are eagerly and actively seeking resources and capabilities to sustain competitive advantage (Ogunsiji & Akanbi, 2013).

This study incorporated the role of strategic agility as the mediator as it is the ability of the organizations to move quickly and continuously adapt and adjust the changing circumstances for business sustainability (McCann, Selsky & Lee, 2009; Ofoegbu & Akanbi, 2012). Agility has been regarded as a necessary way in changing environment for organizational performance (Yang & Liu, 2012). If organizations need to survive in the complex environment, agility is necessity compared with a traditional strategy (Alavi & Wahab, 2013) due to organizations with agility can achieve the goals (Fateme et al. …

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