The Impact of Information Sharing System on Organizational Adaptability and Innovation Performance

Abstract

Advances in information technology and the emergence of the global digital economy have compelled businesses to adopt Information Sharing System (ISS) to its full potential to thrive and fulfill rapidly changing customers’ behaviors. ISS has played a crucial and integral role in enhancing organizational performances in various industries that rely on products and service innovation to increase their competitive advantages. However, the complexities associated with understanding the impact of information sharing in engineering organizations has received scant attention in previous research. To fill this research gap, this research aims to investigates the relationship between the ISS and individuals' learning, adaptation to change, and innovation performance in engineering firms where attaining innovative practices is one of the key success factors. A total of 287 questionnaire surveys were collected from an electronic manufacturers firm in Hong Kong. The partial least squares structural equation modeling (PLS-SEM) was performed to analyze the data. The results indicate that ISS has a positive relationship with individuals' adaptability to change, learning motivation, and individual learning. Individuals’ adaptability to change was a substantial factor in fostering innovation performance for the organizations. Organizations that include the ISS in their organizational structure are more likely to increase their innovation performance by fostering a knowledge-sharing environment. Ultimately, the research findings enhance the understanding for both researchers and practitioners on how ISS might improve organizational innovation performance.