Page 1 of 11
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 7
July 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 1
The Role of Technology in Enhancing Organizational Performance.
Kugathasan Pushpaharan
Senior lecturer, Faculty of Commerce and Management, Eastern University, Sri Lanka.
pushpaharankugathasan@yahoo.com
Abstract
The introduction and enhancement of its
application in the organization is recognized
as an important weapon for sustaining
competitive advantage and improving
performance. The application of technology
to improve organizational processes has
become increasingly important since it
provides the reference for directing the
organizations to enhance their performance
and competitiveness. This paper provides an
understanding of the role of technology to
enhance organizational performance. Also,
it provides an assessment tool that helps
organizations to assess their technological
capabilities and identify the possible
existing gaps in their level of application
and suggest the possible ways to enhance
organizational performance. The results
show that all elements of the role of
technology have a positive significant
relationship with all measures of the
performance at 5% level of significant; it
means that there is a greater influence of the
role of technology on organizational
performance
Key words: — Role of Technology;
Competitiveness; Organizational
Performance
1. Introduction
The twenty first century is the era of
technology economy, in which most
organizations possess considerable level of
advanced technology that enables them to
improve their performance. How does the
organization enhance technological
capabilities to boost internal performance
and external competitiveness is a critical
issue. Many scholars had attempted to
measure the contribution of the Technology
by different models, and found that
introduction of advanced technology and its
level of application are the drivers of
organizational effectiveness
2. Literature Review
Changes in technology, the marketplace,
information systems, the global economy,
social values, workforce demographics, and
the political environment all have a
significant effect on the processes, products
Page 2 of 11
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 7
July 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 2
and services produced. The culmination of
these forces has resulted in an external
environment that is dynamic, unpredictable,
demanding and often devastating to those
organizations which are unprepared or
unable to respond (Burnes, 2004).
Technologies can only lead to increased
productivity or improve performance when
combined with other resources effectively
by human resources or when done
effectively, and use technology productively
and ethically (Dauda & Akingbade, 2011).
Human resource performance is intimately
linked to technological changes and
technological innovations. Technological
change could be effectively managed
collectively through human resource.
Individuals can innovate and achieve great
technological breakthrough but the
complexities of modern technology require
effective combination of different
innovations based on different aspects of
technology.
Employee more rapidly acquires new
knowledge and further advancement of
competencies through training (Chi et al.,
1989). Motivation of the employee has
direct influence on technological
advancement (Hennessey and Amabile,
1998). Employee‟s performance is closely
linked with technological advancement.
Technological advancement is the process of
combining and reorganizing knowledge to
generate new ideas. The development of
technology has an impact on firm
performance (Mumford, 2000).
Technological advancement comes from
internal advancement (Pavitt, 1990), and
internal advancement comes from employee
capability. So there is a close relationship
between technological advancement and
employee performance (Huselid, 1995).
Advancement makes employees more
effective and makes organizations more
efficient (Lawless and Anderson, 1996).
Technological advancement can improve
organizations performance as well (Li and
Deng, 1999). Productions of goods and
services in the world today have been
greatly influenced by the systematic
application of physical forces through
different types of technology. Technology in
most organization provided the required
forces through various forms by which
goods and services were produced.
Page 3 of 11
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e-ISSN: 2395-0463
Volume 02 Issue 7
July 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 3
In this modern world of repaid, high level of
technology changes and technological
advancement will continue to accelerate the
future. Technological advancement changes
the organizational policies and strategies
(Hampel and Martinsons, 2009). In any
organization, most of challenges are
generated by competition, advanced
technology, enhancing employee efficiency
and repaid growth, new leadership and
management (Madsen et al., 2005).
Most of the firms involved the employee in
management, working for technological
advancement and implementation. Firms
invest on employees training to improve the
employee knowledge and skills and
development of employees prior to the
introduction of new technology. They must
ensure that workers to consider the effects of
technological advancement on their own
physiology.
It is clear that the staff who worked under
both the old and new systems have
expressed less positive attitudes about their
jobs, due to mere introduction of advanced
technology, and these attitudes circulated to
the organization because it has become less
committed and more likely to leave. So
firms must motivate the employees to adopt
the new technology and also organization
gives incentive to employee for better
performance (Dauda & Akingbade, 2011).
Moreover organizations purchase the
advance technological tool for improving
the employee’s performance, facilitated job- tasks, improved communication, increased
efficiencies, and higher-levels of
effectiveness in work management. The
introduction of advance technology has
changed the way of performing job.
Technological advancement improved the
employee performance as well as less the
employee working effort and task
completion time.
New technology is not only essential for
company or government, it is also important
for nation. Companies cannot run with old
technologies. Technology increase human
performance when human or employees use
technology for the benefits of the
organization and use with ethical values.
Individual person cannot adopt technology
easily and on the other side group of people
can adopt technology easily. Computer is a
greatest invention; it is useful only in that
case when employees use it for their work.
