In this study, an analysis was conducted to investigate the process how information technology(IT) quality affects organizational performance. Acquisition of IT by itself is not sufficient for the improvement of organizational performance, which additionally requires the operations activity using IT to meditate between IT and organizational performance. This study classified the IT quality into functional quality and operational quality. The functional quality is defined as intrinsic characteristics of IT itself while the operational quality is defined as effective support of IT for organizational management activities. Our research model proposed that the functional quality has indirect effect meditated by the operational quality on organizational performance. The statistical test using structural equation modelling in empirical research showed insignificant direct effect and significant indirect meditation effect of the functional quality on organizational performance via the operational quality. This paper concludes with contribution of this study, managerial implication of the research findings and further research issues.