THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON ORGANIZATIONAL PERFORMANCE: A REVIEWED ARTICLE

Abstract

This article critically reviews the impact of Information and Communication Technology (ICT) on organizational performance, synthesizing insights from ten peer-reviewed studies including prominent Sri Lankan empirical research to provide a comprehensive understanding of ICT's role in evolving business contexts. The research objective is to examine diverse perspectives on ICT adoption and management, analyze the technological, structural, and cultural factors mediating its effects, and explore the challenges and opportunities arising from both core and advanced ICT systems. Employing an integrative literature review methodology, the study bridges global frameworks with localized evidence, particularly focusing on small and medium enterprises (SMEs) in Sri Lanka. Findings reveal that ICT adoption significantly enhances operational efficiency through process automation, real-time data access, and improved coordination, leading to cost reductions and productivity gains. Additionally, ICT acts as a catalyst for innovation and strategic agility, fostering innovation-friendly cultures and enabling rapid adaptation to market dynamics, especially with emerging technologies like artificial intelligence and Industry 5.0 human-machine collaboration. Critical human and managerial factors such as digital literacy, entrepreneurial orientation, and dynamic capabilities are identified as vital enablers that translate ICT investment into performance improvements. The review also highlights contextual challenges in emerging economies, including resource constraints, skill gaps, and cognitive barriers, which modulate ICT's impact. The article concludes that sustainable organizational performance depends on aligning ICT capabilities with human capital, organizational culture, and strategy while addressing local infrastructural and behavioral realities. It recommends developing dynamic ICT capabilities, fostering organizational agility, customizing ICT strategies to local contexts, and strengthening ethical and cybersecurity governance. Additionally, it also highlights the need to transform workforce in order to maximize the interaction between machines and humans in Industry 5.0.