Investigating the Impact of Customer Response Capability on Infusion of Information Systems: A Cross-Sectoral Study of Banking and Higher Education Sector Institutions from Pakistan

Abstract

Effective infusion of information systems by employees has emerged as a critical enabler of organizational performance in this age of digital transformation, particularly in service-oriented sectors. This study investigates the role of firm-level Customer Response Capability (CRC) in shaping Employees’ Infusion Use of Information Systems (EIUIS) across two distinct service domains—higher education institutions and the banking sector in Pakistan. Drawing on data collected from 95 customer relationship managers and 283 frontline employees from 95 organizations from both sectors, separate regression analyses were conducted to assess the strength of the CRC-EIUIS relationship within each sector. The findings reveal a significant and positive association between CRC and EIUIS in both sectors, with a notably stronger effect observed in the banking industry compared to higher education institutions. These results highlight the critical role of responsive organizational capabilities in enhancing employee engagement with IS tools. The comparatively weaker relationship in higher education suggests the presence of institutional barriers such as siloed structures and limited system integration, which may hinder the translation of response capability into system use. The study contributes to the growing body of knowledge on digital adoption and service performance by emphasizing the sectoral contingencies that shape IS infusion behaviours. Practical implications are offered for managers seeking to leverage technology-driven responsiveness to foster deeper IS use among employees and improve service quality.