An investigation on the relationship between information technology conceptualization and bank performance
An investigation on the relationship between information technology conceptualization and bank performance By: Muasa Mwania ABSTRACT It has been a matter of concern for firms to make decisions to invest or not in Information Technology (IT) to provide improvements in productivity and business efficiency. There has no conclusive evidence that the high levels of spending on IT by businesses improved their productivity, leading to the coining of the term IT Productivity Paradox. The impact of Information Technology investments in Kenyan banking system is an important issue as this type of investment constitutes a substantial component of costs and exerts a strong influence on bank operations and strategy. The main objective of this study was to investigate the relationship between conceptualization of information technology (IT) and banks' performance. A survey approach was deemed necessary in unearthing general views. This study adopted a simple random sampling technique to collect the data for the analysis of the relationship between conceptualizations of IT and bank performance. The study used primary data gathered from the respective banks through the use of questionnaires administered to the relevant departments of the various banks under study. The questionnaire was administered to at least 4 respondents comprising of managers at the same level of the organisation for each bank. This study will yield data that require both qualitative and quantitative analysis. From the findings and discussions, the study concludes that organizations conceptualize IT as means to create impact in its performance. Organizations make decisions to adopt IT due to industrial pressure. It concludes that firms make decisions to invest in IT depending on its financial capabilities as well as its technical features. Organizational culture or value also influences firms decision making in IT investment. The survey also made conclusion that implementation of IT is done to optimize resources, reduce costs and enable firms satisfy its customers as well as to generally improve firm performance. From the study it is recommended that organizations should invest in IT as it improves staff capabilities, provides choice of communication and provides quality products. This will make the organization to evaluate IT productivity capabilities and its impact in improving firms’ performance. The study also recommends business to focus on specific strategies for firms to improve in profitability and eventually increase it revenue.