dc.description.abstract | Information Technology has emerged as a key component in solving complex strategic
issues. Relevant literatures have recognized Information technology as the driving force
behind the fast rate of changes in global markets. Organizations are becoming
increasingly dependent on Information Technology to improve their performance. While
the dependence on Information Technology is on the increase, Organizations are unsure
of the payoff of these heavy investments. It is on the backdrop of this dilemma that this
study set out to establish whether Information Technology have an effect on
Organizational Performance. The theory that anchored this study was Edith Penrose’s
(1959) Resource Based theory of the firm. This theory stipulates that a firm is a bundle of
resources within an administrative framework. The study considered Information
Technology as a critical resource for the bank. It was a case study that sought to utilize
longitudinal studies to establish the trends exhibited by the two variables during the
period studied. The study collected both primary data and secondary data to benefit from
triangulation. Primary data were collected using a pretested interview guide that was used
to interview 10 senior managers drawn from key functional areas of the bank. Secondary
data was collected from published annual financial statements of the bank. The data
findings were analyzed using Excel software tools and the findings showed a positive
relationship between Information Technology and Organizational performance. The key
findings of the study were that some of the internal benefits of Information Technology
included cost reduction, improved customer services, process and people efficiencies and
better employee performance. Under Information Technology practices, the key findings
were that the bank has hardware, which included personal computers, laptops, servers
and Internet protocol phones. It was also noted that there was a bank website to provide
information to the public. The existence of an intranet for employees and networks was
also a notable feature. The strategic benefits of Information Technology at the bank
included competitive advantages gained by the bank, innovation of products, organization
learning, restructuring, expansion and increased business opportunities. There were
challenges that arose with adoption of Information technology which included system
failures, frauds and high costs of IT investments. The study established that there is a
relationship between Information Technology and Organizational Performance though
the relationship was not very strong because of the existence of other variables that affect
Organizational Performance. This study recommends that managers in organizations need
to closely monitor the implementation of Information technology in order to optimize its
benefits. It further recommends that managers and policy makers need to keep abreast of
the developments in this dynamic information technology sector to ensure that
organizations survive in the global market place and craft necessary policies to guide and
regulate this critical industry. The study contributes to the resolution of the “productivity
paradox” where Information technology has often brought doubts to practitioners and
researchers alike as to its claims on productivity. | en |