Many researchers have studied the theme on CASE technology. However, there are no many researches which lightened the diffusion of CASE technology and organizational change. The purpose of this study is to investigate the factors that influence on the diffusion of CASE technology and the way how IS organization changes as a result of the diffusion. We exploited a case study research as a methodology. We selected five software development firms which possessed the leading IS technology abilities as the case companies. We realized that the diffusion of CASE technology proceeded under the three context variables - managerial context of information systems, the intent and behavior of key players and implementation strategy of organization - to enhance the performance of information systems. The contribution of this study is to clarify the change of IS organization as a result of CASE technology diffusion. This study has the limitation that tried to analyze the organizational change only in a direction.