Premium
The IT Productivity Paradox: Evidence from the Nigerian Banking Industry
Author(s) -
Ekata Godfrey E.
Publication year - 2012
Publication title -
the electronic journal of information systems in developing countries
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.41
H-Index - 18
ISSN - 1681-4835
DOI - 10.1002/j.1681-4835.2012.tb00361.x
Subject(s) - banking industry , productivity , profit (economics) , net profit , business , gross profit , test (biology) , economics , actuarial science , econometrics , finance , economic growth , microeconomics , paleontology , biology
This paper reports the study of an investigation conducted to determine whether or not a relationship exists between IT expenditure and the financial performance of the Nigerian banking industry. A non‐experimental quantitative, correlation method was used in the investigation. The IT expenditure data were collected for the period 2005 through 2009 from the Nigerian banking industry using a survey instrument, while the financial performance data were collected from the banks’ annuals reports for the same period. The total IT expenditure was analyzed against certain financial performance indicators (ROA, ROI, and net profit) using the SPSS software. Spearman's correlation coefficient was used to analyze the data and to test the hypotheses formulated for the study. The results suggest the presence of IT productivity paradox in the Nigerian banking industry.