Abstract:
In recent years, the role of information system has grown in importance.
Thus, Information System(IS) is evolving into key part of a company's performance and
this paper provides an analysis on the relationship between Information system
resources and Information system capability in Sri Lankan Context; the basic idea is
that a firm's IS capability can be explained by how effective the firm is in using IS
resources to exchange Capability . Therefore, this concept developed "effect of IS
Resources and IS Capability of organization. This study is empirically tested using data
collected from IT managers or executives from IT department or IT unit from 46 firms
in Colombo metropolitan area in Sri Lanka. Information technology infrastructure
capabilities have been noted in prior research as having a significant impact on firm
performance. However, it is not clear how these infrastructures meant and impact on IS
capability and past study have implicitly assumed that IS assets could have direct
influence on firm performance.
This paper examines how effective the relationship is being between IS
Resources and IS Capability. IS Resources include Information System Human Capital
(ISHC) and Information Technology Infrastructure (ITI) and IS capability includes IS
Planning, System Development Capability, IS Support System, and IS Operations
Capability. Structured questionnaire was included in the questionnaire with S points
likert scale. Data analysis was done using correlation. Person's correlation coefficient
was used to measure the linear relationship between variables.
This results provide evidence that IS Human Capital has positive significant
effect on IS capability than IT Infrastructure has positive significant effect on capability.
These results have significant implication for future research and practice on
how IS Resources and ARE capability contributed development of business and
enhancement of firm performance.
