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Abstract
Since IT plays a critical role in leveraging or exploiting human and business resources, it is likely that HRM practices may have different effects on IT usage under the influence of different sources of IT capabilities. This study examines the moderating effects of the source of IT capability (Internal vs. External) on the relationship between HRM practices and IT usage. The results indicated that organizations with internal IT capability, HRM practices such as employee participation, clearly defined jobs and extensive formal training were significant in predicting IT usage. However for organizations that used external IT capability, only internal career opportunities was significant in predicting IT usage.