The impact of information technology capability on firm performance; a focus on employee-customer profit chain

Employee-customer-profit(ECP) chain is one of the guidelines for organizations 'success in their life cycle. Strong relationships have been found between employees' 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 factors interact. One of these factors is information technology (IT) capability. In this research, we modeled the effect of IT capability on ECP chain using structural equation modeling (SEM). Service process innovation (SPI) was also used as a mediating variable between IT capability and ECP chain. This was accomplished based upon quantitative data gathered from a sample of 212 employees of the Technical and Vocational organization in Mashhad city. Results revealed a strong support for the proposed model. In particular, the association between IT capability and SPI with ECP chain and their leverage effect facilitate the organizations' movements along with the chain which was significantly confirmed.