Impact of software quality on organizational performance

Abstract

Software has emerged as a critical strategic asset that drives organizational success and competitive advantage. In today’s software-centric economy, businesses manage their software resources to enhance organizational performance effectively. However, low-quality software systems can significantly hinder this goal. This study investigates the impact of information quality (IQ), quality of service (QoS), and software quality (SQ) on organizational performance (OP). A quantitative research approach was employed, involving a survey of 360 participants. Data analysis techniques, including exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM), were utilized to test the proposed hypotheses. The findings reveal a significant positive correlation between information system quality and organizational performance. These results underscore the importance of prioritizing the quality of software systems, the quality of information, and the quality of service to achieve superior organizational performance. The implications of these findings for managers are discussed, highlighting the need to invest in software quality initiatives and to continuously monitor and improve information and service quality to drive business success.