The Effect of Information Technology on Organizational Structure and Firm Performance: An Analysis of Consultant Engineers Firms (CEF) in Iran

Abstract

The purpose of this paper is to investigate the effect of information technology (IT) on organizational structure (OS) and firm performance (FP). This study employed a causal and descriptive research design to determine the cause-and-effect relationships among IT, OS, and FP based on previous studies. A model incorporating these three constructs is examined using structural equation modeling (SEM). A 14-question self-administered questionnaire comprising three sections was employed. The target population for this study was Consultant Engineers firms’ owners, general and executive managers, and experts in the area of Tehran, Iran. A field survey was carried out and questionnaires were sent to all of the selected firms based on a cluster-sampling approach. The results show that IT has a direct and indirect impact on FP. OS is found to have a direct effect on FP. Finally, the results of the current study show that IT has a direct effect on OS.

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