Effect of Dynamic Information Technology Capabilities on Organizational Performance of Deposits Money Banks in Nigeria

Kabiru Jinjiri Ringim, Mohammed Aliyu Dantsoho, Hanmaikyur Tyoapine John

Abstract


The objective of this paper to examined the effects of Dynamic Information Technology Capabilities (DITCs) on organizational performance using data from the Nigerian banking sector. The DITC dimensions include Information Technology (I.T) Knowledge, IT Management, IT Personnel Expertise and IT Infrastructures.Cross-sectional survey research design was used in the study. Population of the study consists of 191 employees of deposit money banks and 155 employees’ were drawn as sample size for the study. The sample size was selected using simple random technique. Data was collected by means of hand delivery using Research Assistant from the employees at management cadre representing the respective banks in the study. The data was processed using Statistical Package of Social Science (SPSS). Regression analysis was conducted to test the hypothesis and determine the best DITC predictor’s in the relationship between DITC and organizational performance of DMB in Nigeria. Also, factor analysis was done to reduce the dimensionality of a data set in which there are a large number of interrelated variables, while retaining as much as possible of the variation present in the data set. The result reveals that there is significant positive relationship between DITCs and organizational performance in terms of marketing and financial performance However, this relationship is higher in terms of IT infrastructure flexibility fallowed by IT personnel expertise, then IT management capability and lastly IT knowledge creation.  The outcome of this study provides important insights to both managers and researchers for further understanding on the effects of DITCs factors on organisational performance. It is therefore recommended that, mangers should pay attention on building, re-configuring, renewal and deploying of DITCs so as to deal with environmental changes effectively.


Full Text:

PDF

References


Aduloju, S. K. Information Technology Managerial Capabilities and Customer Service Performance among Insurance Firms in Nigeria, SAGE Journals, 2232-2245 1177/2158244014561198, 2014.

Ambrosini, V. & Bowman, C. What are dynamic capabilities and are they a useful construct in strategic management? International Journal of Management Reviews, 11, 29–49. 2009

Anand, A., Wamba, S. F., & Sharma, R. The Effects of Firm I.T Capabilities on Firm Performance: the Mediating Effects of Process Improvement. 24th Australasian Conference on Information Systems, by University of Wollongong Australia. 2013

Armstrong, C.E., &Shimizu, K. A review of approaches to empirical research on the resource-based view of the firm. Journal of Management, 33. 959– 986. 2007

Barney, J. Firm Resources and Sustained Competitive Advantage, Journal of Management17 (1) 99-120. 1991

Byrd, T. A., & Turner, D. E. An Exploratory Examination of the Relationship between Flexible IT Infrastructure and Competitive Advantage, Information Management, 39, 41–52. 2001

Chen, Y., & Wu, J. Information & Management IT Management Capability and its Impact on the Performance of a CIO, 48, 145–156. http://doi.org/10.1016/j.im.2011.04.001, 2011.

Chen, J. S., & Tsou, H. T. Performance Effects of I.T Capability, Service Innovation, and the Mediating Role of Customer Service. Journal of Engineering and Technology Management, 29(1), 71–94. http://doi.org/10.1016/j.jengtecman.2011.09.007, 2012.

Chung, S. H., Byrd, T. A., Lewis, B. R., & Ford, F. N. An Empirical study of the Relationships between IT Infrastructure Flexibility, Mass Customization, and Business Performance, The Database for Advances in Information Systems, 36(3) 26-44, 2005.

Dantsoho, M. A Effect of I.T Capabilities on Organisational performance In Nigeria, Second edition of Postgraduate Seminar Proceedings Department of Business Administration Ahmadu Bello University, Zaria Nigeria. 2015.

Dantsoho, M. A. Dynamic Information Technology Capabilities (DITC) and Organisational Performance: the Mediating effects of Process Improvement, Presented at 3rd International Conference on Accounting, Finance and Management (ICAFM, 2016) Obafemi Awolowo University, Ile-Ife, Nigeria, 2016.

Dantsoho, M. A., & Ringim, K. J. The Mediating Effects of Process Improvement on the Relationship between Dynamic Information Technology Capabilities (DITC) and Organisational Performance, Journal of Business Value Creation, 4(2), 2016.

Dillma, D. A. Mail and Interview Surveys: the tailored design Methods (2nd&4thEd.) New York: John Wiley and Sons.2007.

Dess, G. G., & Robinson, R. B. Measuring Organizational Performance in the Absence of Objective Measures: The case of the Privately-held Firm and Conglomerate Business Unit. Strategic Management Journal, 5, 265-273, 1984.

Eisenhardt, K. M., & Martin, J. A. Dynamic Capabilities: what are they? Strategic Management Journal, 21(10-11), 1105–1121. http://doi.org/10.1002/1097-0266 (200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E. 2000.

Feeny, D. F., &Willcocks, L. P. Core IS Capabilities for Exploiting Information Technology, Sloan Management Review, 39(3), 9-21, 1998.

Fernando, G. M., Gregorio, M. C., & Pedro, L. S. (nd). The knowledge-creation process: A critical examination of the seci model, 1-13

Hair, J. F., Anderson, R. E., & Tatham. R. L. Multivariate data analysis (7thed). Upper Saddle River, NJ: Pearson Prentice Hall. 2010,

Hulland, J., Wade, M.R., & Antia, K. D. The impact of capabilities and prior investments on online channel commitment and performance. Journal of Management Information Systems, 23, pp. 109–142, 2007.

Idroes, F. N. Distinctive Capabilities of Banking Industry, Proceedings of 8th Asia-Pacific Business Research Conference, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-71-9, 2015.

Kim, G., Shin, B., Kim, K. K. L., &Ho, G. I.T Capabilities, Process-Oriented Dynamic Capabilities, and Firm Financial Performance, Journal of the Association for Information Systems, 12(7), 2011.

KPMG, Nigeria Banking Industry Customer Satisfaction Survey, available at https://home.kpmg.com/content/dam/kpmg/pdf/2015/01/2014-Banking-Industry-Customer-Satisfaction-Survey-Final.pdf, accessed on December, 2015

Lee, Y. C., &Lee S. K. Capabilities, Processes, and Performance of Knowledge Management: A Structural Approach, Journal of Human Factors and Ergonomics in Manufacturing, and 17(1) 21–41, DOI: 10.1002/hfm.20065, 2007.

Lim, S., & Trimi, S. Impact of Information Technology Infrastructure Flexibility on the Competitive Advantage of Small and Medium Sized-Enterprises, Journal of Business &Management, 3(1), 01-12, 2014.

Lin, B. Information Technology Capability and Value Creation: Evidence from the US Banking Industry, Technology in Society, 29, 93–106, 2007.

Masrek, M. N. The Effect of Information Technology Infrastructure Flexibility on Intranet Effectiveness, Computer and Information Science, 2(2), 57–67, 2009.

Melville, N., Kenneth, K., & Vijay, G. Review: Information Technology and Organizational Performance: An Integrative Model of ITS Business Value, MIS Quarterly, and 28(2) 283-322, 2004.

Mithas, S., Ramasubbu, N., Krishnan, M.S., &Sambamurthy, V. Information Technology Infrastructure Capability and Firm Performance: An Empirical Analysis. Online article, retrieved on November, 2014.

Olufemi, A.O., Banjo. H. & Peter B. S. Dynamic Capabilities and Competitive Advantage: An Analysis of The Nigerian Banking Sector, Journal of accounting and management, 2(4), 29-36, 2014

Olufemi, A.O., Banjo. A. H., & Peter B. S. Competitive strategies, technological capabilities and Organizational performance: evidence from Nigerian manufacturing industry, Arabian Journal of Business and Management Review (Nigerian Chapter), 2(1), 11-22, 2014.

Osisioma, H. E., Nzewi, H. N., &Mgbemena, I. C. Dynamic Capabilities and Performance of Selected Commercial Banks in Awka, Anambra State, Nigeria, European Journal of Business and Social Sciences, 4(10), 98 – 110, 2016. URL: http://www.ejbss.com/recent.aspx-/ ISSN: 2235 -767X

Ringim, K. J. Effect of the Business Process Reengineering Factors and Information Technology Capability on Organization Performance. Thesis Submitted to Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, in Fulfilment of the Requirement for the Degree of Doctor of Philosophy, 1-431, 2012.

Ringim, K. J., Razalli M. R. &Hasnan N. The Relationship between Information Technology Capability and Organizational Performance in Nigerian Banks, International Journal of Technology and Management, (1)1, 1‐10 ISSN 1927‐9000, 2012.

Ringim, K. J., Razalli M. R. & Hasnan N. The Moderating Effect of I.T Capability on the Relationship between Business Process Reengineering Factors and Organizational Performance of Banks. Journal of Internet Banking and Commerce, 17, 2, 2012.

Ross, J., Beath, C. &Goodhue, D. Develop Long-term Competitiveness through ITS Assets, Sloan Management Review, and 38(1) 31-42, 1996.

Sekaran, U. & Bougie, R. Research methods for business: A Skills Building Approach (2th end) Chischester: John Willey and Sons ltd. 2010

Salawu, R. O., & Salawu, M. K. The Emergence of Internet Banking in Nigeria: an Appraisal, Journal of Information Technology, 6(4), 490, - 496, 2007.

Sambamurthy, V. Bharadwaj, A., & Grover, V. Shaping Agility through Digital options: reconceptualising the role of IT in contemporary firms, MIS Quarterly 27 (2), 237–263, 2003

Sher, J., & Lee, V. C. Information technology as a Facilitator for enhancing dynamic capabilities through knowledge management. Journal of Information & Management, 41, 933–945, 2004.

Spanos, Y. E., & Lioukas, S. An Examination into the Causal Logic of Rent generation: contrasting Porter’s competitive strategy framework and the resource-based perspective, Strategic Management Journal, 22, 907-934, 2001.

Tabachnick, B. G., & Fidell, L. S. Using Multivariate Statistic (6thed). Bonston: Pearson Education Limited. 2014.

Teece, D. J., Pisano, G., & Shuen, A. Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533, 1997.

Teece, D. J. Explicating Dynamic Capabilities: The Nature and Micro foundations of (sustainable) Enterprise Performance. Strategic Management Journal, 28(13), 1319–1350, 2007.

Wade, M., &Hulland, J. The Resource-Based View and Information Systems Research: Review, Extension and Suggestions for Future Research, MIS Quarterly, 28(1), 107-138, 2004.

Wang, C. L., & Ahmed, P. K. Dynamic Capabilities: a Review and Research Agenda. The International Journal of Management Reviews, 9(1): 31-51, 2007.

Xiao, L., & Dasgupta, S. The Effects of Dynamic IT Capability and Organizational Culture on Firm Performance: An Empirical Study, International Conference on Information Systems (ICIS) 2009 Proceedings. Paper170-179, 2009.

Zott, C. Dynamic Capabilities and Emergence of Intra-industry Differential Firm Performance: insight from simulation study, By Boulevard de Constance, France, 2000.


Refbacks



MAYFEB Journal of Business and Management
MAYFEB TECHNOLOGY DEVELOPMENT
Toronto, Ontario, Canada
ISSN 2371-7742