Building information technology capability and organizational learning

IT capability has been touted as the “fourth era” in the development of information technology. It has been shown by researchers to make positive contributions to a firm’s business performance, competitive advantage and organizational effectiveness. But how can a firm build its IT capability and reap these benefits? This question is especially difficult to answer for firms in developing countries where such capability is lacking, and budgets are limited. This study focuses on understanding the building of IT capability and the role of organizational learning, using a case study in a developing country. It was found that organizational learning has positive effects on IT capability; especially on two out of its three dimensions: IT human resources, and the relationship between IT and business. This will hopefully help other firms in the same situation to find another option in their challenge of building an IT capability.