Information technology and learning: Their relationship and impact on organisational performance in small businesses

Information technology is seen as a key tool in knowledge management processes. Nevertheless, the presence of information technology neither guarantees knowledge creation, knowledge distribution nor knowledge use. In addition to information technology, a job environment and a culture that encourage sharing and continuous learning should also be created and maintained by management. This paper provides empirical evidence of the relationship between information technology and learning in small businesses as well as their impact on organisational performance. Furthermore, the level of sector knowledge-intensity is taken into consideration. Results show that individual learning along with individual and collaborative information technologies have a positive and significant impact on organisational learning. On the other hand, unlike individual and collaborative information technologies, individual and organisational learning have shown significant and positive effects on organisational performance. Therefore, information technology has a significant impact on outcomes only when in a proper context of learning is in place. Small businesses in sectors with high knowledgeintensity levels are more likely to use more frequently information technology tools and organisational learning practices. r 2005 Elsevier Ltd. All rights reserved.