Evaluating the Effect of Communication and Shared Knowledge Between IS and Line Organizations on IS Performance

Intensified competition, splintered mass market, shortened product life cycles, and advanced technology and automation let companies to increase the IT investment to meet the changes. Although IT investment increased, IS did not show the visible outcome. One of the major interests of IS managers is how to demonstrate the business value of the firm’s investment in information technology. his paper proposes the revised model of Nelson & Cooprider[13] that adds communication as an antecedent of regarding shared knowledge between IS and line groups. Knowledge can be shared through mutual trust, mutual influence and communication between these two groups. The revised model including communication is tested empirically using LISREL. The results show that shared knowledge has an effect on IS performance mediating with mutual trust, mutual influence and communication. Thus, IS managers should develop mutual trust, mutual influence and communication between these groups to achieve more shared knowledge, which proceeds higher IS performance