The influence of information technology on financial performance of organizations: A survey in IT-based companies of Iran

The aim of the present study is to investigate the relationship between applying Information Technology (IT) and financial performance of 50 manufacturing companies in Iran. Senior managers, middle managers, supply chain managers and IT managers where selected as appropriate respondents for this study. After distribution of 150 questionnaires among respondents, 130 usable questionnaires were returned and the rest of them were not useful due to incompleteness and other problems. The research method used for this study is descriptive-correlation. Further, the analysis was carried out utilizing Structural Equation Modeling (SEM) methodology by LISREL 8.8 software. The factors analysis and the findings show that applying Information Technology has a significant positive relationship with financial performance of selected organizations. The results of the current study imply that managers can invest on IT to improve their financial performance of their organizations to achieve competitive advantages.