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Purpose

– The purpose of this paper is to investigate how and why information systems (IS) enhance firm performance (FP) from a knowledge management perspective. Drawing upon the knowledge-view of the firm and organizational learning theories, we develop and empirically test a theoretical model where knowledge sharing (KS) plays a mediating role between IS maturity (ISM) and FP.

Design/methodology/approach

– Data were collected through a survey of business managers in China. The model was tested by using the partial least squares structural equation modeling approach.

Findings

– The results provide support for the propose research model and confirm that ISM is positively associated with FP, and KS partially mediates the effects of ISM.

Originality/value

– This study contributes to the IS literature by reconceptualizing the ISM construct and testing the mediating effect of KS and, thus, offers some answers to the “how-and-why” question about the value of IS.

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