ABSTRACT
This
study is on the Effects of Information and Communication Technology (ICT) on
the Performance of Commercial Banks in Enugu, Nigeria. The study seeks to
ascertain the relationship between ICT and organisational performance; identify
the effects of ICT on employees’ performance; identify
the challenges encountered in the application of ICT and to determine the impact of ICT on Nigerian commercial banks.
A sample size of 297 was determined from the population of 1,150 drawn from the
senior and junior staff of the selected commercial banks using Taro Yamane’s
sample size determination method. The sources of data for the study were primary
and secondary. The instruments used for
primary data collection were questionnaire and interview. The secondary data
were sourced from journals, textbooks and internet. The questionnaire was
structured in five-point Likert scale format in line with the objectives of the
study. The instrument was checked for reliability, using test-re-test method.
The result gave reliability co-efficient of 0.97 % showing high degree of item
consistency. The total number of questionnaire distributed for this study was
two hundred and ninety-seven (297) copies, while two hundred and sixty (260)
copies were completed and returned. The research design adopted was survey
design. The data generated from the field survey were presented and analysed
using frequency distribution table. The hypotheses were tested using Z-test and
Friedman Chi-square (X2). The findings indicate that there is
significant relationship between ICT and organisational performance; Error rate reduction and speed in operations are
the effects of ICT on employees’ performance;, Poor
infrastructure and inadequate government support on ICT are some of the
challenges encountered in the application of ICT in the banking sector; and Quality,
effective service delivery, reduction of cost of operation and increase of
output are some of the positive impact of ICT in Nigerian commercial banks. The
study recommends that investment in Information and Communication Technology
should be a priority to commercial banks because of its numerous benefits;
Banks should fully utilise ICT so as to increase profit by cutting down the
cost of operation.
TABLE OF CONTENTS
Title
Page.……………………………………………………………………………………..…….i
Certification………..………………………………………………………………………..………..ii
Approval…..……………..………………………………………………….iii
Dedication.……..…………………………………………………………………………………..iv
Acknowledgements.…………………………………….………………………..……v
Abstract.………………………………………………………………………………………………vi
Table of Contents..……………………….…………………………..……………….vii
List of Tables….………………………………………………………………………….ix
List
of figures…………………………………………………………………………..……………x
CHAPTER ONE
INTRODUCTION
- Background of the Study……..……………………………………….1
- Statement of the Problem……..…………………………………………….………3
- Objectives of the Study……………………………………………………4
- Research Questions…………………………………………………..…….4
- Research Hypotheses…………….………..………………………………..4
- Significance of the Study………..………………………….…………..…..5
- Scope of the Study…….…………………………………………..…….…….5
- Limitations of the Study…..………………………………..….….6
- Definition of relevant Terms…….……………………………….……..6
References………………………….………………………………………………………8
vii
CHAPTER TWO
REVIEW OF
RELATED LITERATURE
- Information and Communication Technology defined….………..10
- ICT: A perspective of Nigerian Banks…….………………..………11
- Products of Information and Communication Technology in the Banking Sector….……17
- Benefits of ICT in the Nigerian Banking Sector………………..24
- Challenges of ICT in the Nigerian Banking Sector….……………………29
- ICT and Organisational Performance……………………………………31
References.……………………………………………………………………………….40
CHAPTER THREE
RESEARCH
METHODOLOGY
3.1 Introduction…………………………………………………………………47
3.2 Research Design and Data Collection…………………………47
3.3 Population of the Study……………………………………………47
3.4 Sample Size Determination…………………………………………48
3.5 Description of Research Instrument……………………………………51
3.6 Data Analysis Techniques………………………………………………..52
3.7 Validity of the Research Instrument…………………………52
3.8 Reliability of the Research Instruments……………………………………..52
CHAPTER FOUR
PRESENTATION,
ANALYSIS AND INTERPRETATION OF DATA
CHAPTER FIVE
- Summary of Major Findings…………………………………………………..87
5.2 Conclusions………………..……………………………………………..……………….87
5.4 Recommendations………………………………………………..……………..87
5.5 Contribution to Knowledge……………………………………………88
5.6 Suggested Area for Future Research…………………………………….88
Bibliography……………………………………………………………………………..89
Appendix I………………………………………………………………………………98
Appendix II………………………………………………………………………………101
TABLES LIST
OF TABLES
3.1 Population of the Study……………………………………………………………………48
3.2 Break Down of the Sample Size…………………………………………………51
3.3 Reliability Test………………………………………………………………………………..53
4.1 Distribution and Return of the Questionnaire………………………..55
4.2 Sex Distribution of Respondents……………………………………………………….55
4.3 Age Distribution of Respondents…………………………………………………56
4.4 Educational Qualification…………………………………………………………………56
4.5 Respondents’ Working Experience……………………………………………………..57
4.6 Relationship between ICT and Organisational Performance…….58
4.7 Relationship between ICT and Organisational Performance…….59
4.8 Condensed Outcome of the Two Questions Administered
for Research Question 1……..60
4.9 Aggregate Response for the Three Organisations………………60
4.10 The Effect of ICT on Employees’ Performance…………………….61-64
4.14 Condensed Outcome of the Four Questions Administered
for Research Question 2……..65
4.15 Aggregate Response for the Three Organisations…………………………..65
4.16 The Challenges Encountered in the Application of ICT……………….66-70
4.21 Condensed Outcome of the Five Questions Administered
for Research Question 3……..71
4.22 Aggregate Response for the Three Organisations…………………………..71
4.23 Expected Frequencies for Hypothesis 3……………………………………….71
4.24 The Impact of ICT on Organisational Performance………72-76
4.29 Condensed Outcome of the Five Questions Administered
for Research Question 4……..77
4.30 Aggregate Response for the Three Organisations……………………………77
4.31 Expected Frequencies for Hypothesis 4…………………………………………77
LIST OF FIGURES
2.1 ICT Assessment Model…………………………………………………………………..32
2.2 Value Chain and ICT……………………………………………………………………….34
2.3 Strategic Alignment Model……………………………………………………………35
2.4 Model Procedural Value Creation of ICT…………………………………………….37
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
The
19th century saw astonishing developments in communication technology
originating in Europe. In 20th century information technology developed rapidly
due to the scientific gains directly tied to military research and development,
as they did in part due to World War II (Musiime and Biyaki, 2010).
Today’s
business environment is very dynamic and undergoes rapid changes as a result of
technological innovation, increased awareness and demand from customers. Organisations
are confronted with rapidly changing market conditions, indicated by high
merger rates and strong competitors. Under these conditions, traditional
management approaches that focus on financial figures and on centralised,
analytical planning methods are considered to be insufficient for effectively
steering the organisation in a dynamical environment (Hoffmann, 2002). Recent
management support approaches like intellectual capital or particularly the
balanced scorecard aim at providing a broader view of organisational performance.
They combine both financial and non-financial aspects and comprise activities
not only to monitor but also to plan and influence organisational performance
(Hoffmann, 2002). Their success demonstrates the strong demand for this
so-called comprehensive performance management.
The
role of technology in the “Information Age” is well recognized by business,
industry, and government and is completely woven into their organisational
structures and strategic planning processes. Glover (1993) emphasized technology’s
role when he said “that the quality of strategic planning is limited by the
quality of information available to decision makers…” and that executive
information systems were critical in furnishing the necessary data which
produced information. Business organisations,
especially the banking industry of the 21st century operate in a complex and
competitive environment characterized by these changing conditions and highly
unpredictable economic climate. ICT directly affects how managers decide, how they
plan and what products and services are offered in the banking industry. It has
continued to change the way banks and their corporate relationships are
organized worldwide and the variety of innovative devices available to enhance
the speed and quality of service delivery.
Laudon and Laudon (1991) contend that managers of both public and
private sector organisations cannot ignore Information Systems because they
play a critical role in contemporary organisation. They point out that the
entire cash flow of most fortune 500 companies in the world is linked to
Information System.
At
the corporate level, ICT represents an important venue for spending (Weill et
al, 2002) as a vehicle for growth. Increasingly, many of the IT-related
expenses are directed to developing nations (Roztocki, Pick et al, 2004). For
example, during the period 2002-2004, 500 global ICT companies including
Microsoft, IBM, Siemens, Alcatel, Motorola, Nokia, Intel, Hewlett-Packard and
Oracle implemented over 1000 projects in developing nations dominating the
largest share of ICT investments (O’Connell, 2004).
The ICT infrastructure evolved to become a critical
factor driving productivity and growth in global economies with varying
implications among developed and developing nations (Steinmueller, 2001). It is
important for developing nations not to isolate themselves from the changes
occurring due to the developments in the ICT globally (Gholami et al, 2004).
This is partially because ICT is transforming the global economy and creating new
networks that cross cultures as well as minimize distances. However, it is
important to note that increased investments in ICT without the involvement of
other socioeconomic factors may not improve growth in developing nations
(Mbarika et al, 2003).
Information
Technology (IT), also known as information and communication(s) technology
(ICT), is a term that describes the combination of computer technology which is
hardware and software with telecommunications technology such as data, image
and voice networks. According to Lucas (1997), Information Technology refers to
all forms of technology applied to processing, storing and transmitting
information in electronic form. The physical equipment used for this purpose
includes computers, communications equipment and networks.
Performance is defined as valued contribution to
reach the goals of an organization. Contributions can be made by individuals or
groups of employees as well as by external groups. In the past, the measurement
of performance was usually restricted to a financial perspective, resulting in
various limitations like a focus on the internal aspects of the company, a
limited transparency of the roots and causes of corporate performance, as well
as late availability of performance-related information. In order to overcome
these limitations, performance has to be considered as a multidimensional
phenomenon (Steven, 2002).
Performance requirements are derived from the
company’s strategy or vision as well as from its stakeholders, e.g. customers,
suppliers or shareholders. However, it is not sufficient to focus only on the
management perspective of the performance management concept. Like other
management approaches, performance management can only be implemented
successfully, if strategic planning is tightly linked to operational execution.
Therefore, the integration of strategies, organisational structures and
business processes by the use of specialised information technology is
considered a vital part of performance management concept. It has to be ensured
that strategy changes trigger modifications on the business process level and
the supporting information technology, and that innovations on the information
system or the process level initiate the adjustment of the company’s strategy.
Due to different life cycles and varying actor groups, the alignment of
strategy, business processes and information technology support often turns out
to be difficult and expensive (Steven, 2002).
1.2 STATEMENT
OF THE PROBLEM
EFFECTS OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON THE PERFORMANCE OF COMMERCIAL BANKS IN ENUGU, NIGERIA
