World number three McIlroy has missed the cut at his home event for the last three years and has recorded just two top-10 finishes in nine attempts.
"My performances haven't been what I'd want but it's a tournament I would love to win one day," said the 27-year-old.
"I feel like my game is in good enough shape to do that."
The Northern Irishman, who is tournament host for the second year, recorded his best result in 2008, when he finished seventh in his first full year as a professional.
That came two years after he watched the final day of the 2006 Ryder Cup on the course as a 17-year-old spectator.
But, despite being frustrated at failing to turn good performances into a victory so far in 2016, McIlroy thinks he can contend for the title.
"The Irish Open always was, but even more so now, one of the most important weeks of the year for me," said the four-time major winner.
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"I'm coming off a couple of decent weeks in the States where I felt I played better than the results suggested, and the K Club is a course I feel I can do well on.
"It would be huge [to win]. Anyone that plays professional golf, they dream of winning their home open. You don't get many opportunities so it would be very special. It's one tournament that is missing from my CV."
Asked if he could pinpoint why he had not performed well in Ireland, McIlroy said: "No, not really. Maybe the pressure of playing at home - we don't play at home often - and maybe trying too hard or putting too much pressure on myself.
"There were obviously reasons I wanted to get involved in this tournament. I wanted to contribute something, where coming to the Irish Open was becoming more of a burden instead of something I relished and enjoyed.
"Being able to get involved and not just play for myself, but play for and help other people, I enjoy that part of it.
"I want to help out. I want to make this one of the best tournaments in the world and we've made a few good strides towards doing that."
McIlroy believes he learnt a lot from acting as tournament host last year, when he slumped to an opening round of 80 and missed the cut at Royal County Down, but was on hand to present the trophy to eventual champion Soren Kjeldsen.
"There were times where I spread myself too thin last year with a lot of commitments and we've tried to scale that back this year," he added.
Rory McIlroy is confident he can improve on his poor record in the Irish Open when he competes at this week's event at the K Club in County Kildare.