DOES INFORMATION TECHNOLOGY CAPABILITY IMPROVE BANK PERFORMANCE? EVIDENCE FROM TURKEY

DOES INFORMATION TECHNOLOGY CAPABILITY IMPROVE BANK PERFORMANCE? EVIDENCE FROM TURKEY

The aim of this paper is to examine whether the Information technology (IT) capability of a bank can create economic value and competitive advantage. In contrast to previous research, which generally concentrated on the effects of IT investment on competitive advantage, this paper examines IT capability directly. Based on a sample of 15 banking firms, this paper investigates the effects of IT capability and human capital support on three firm-performance measures. The results demonstrate that human capital support contributes directly to performance of banking firms

___

  • Beccalli, E. (2007). Does IT investment improve bank performance? Evidence from Europe, Journal of Banking and Finance, 31, 2205−2230.
  • Benito, J. G (2007), “Information Technology Investment and Operational
  • Performance in Purchasing”, Industrial Management & Data Systems, 107 (2), 28. Bontis N. & Fitzenz J., (2002), “ Intellectual Capital ROI:A causal map of human capital antecedents and consequents”, J ournal of Intellectual Capital, 3(3), 223
  • Chen Y., Liang L., Yang F. & Zhu J., (2006), “Evaluation of information technology investment: a data envelopment analysis approach”, Computers &
  • Operations Research 33, 1368–1379.
  • Edvinsson L., (1997), “Developing intellectual capital at Skandia”, Long Range Planning, 30(3), 366-373.
  • Harris, D. H. (1994). Organizational linkages: Understanding the productivity paradox. Washington, DC: National Academy Press.
  • Lin, B. W. (2007). Information technology capability and value creation:
  • Evidence from the US banking industry. Technology in Society, 29, 93−106. Orlow, D. K., Radecki, L. J., & Wenninger, J. (1996). Ongoing restructuring of retail banking, Research Paper #9634, Federal Reserve Bank of New York.
  • Ou C. S., Yen D. C. & Hung C. S., (2009), “Determinants of information technology investments: The case of ATM in an emerging economy”, Advances in Accounting, incorporating Advances in International Accounting 25, 278–283.
  • Rai, A., Patnayakuni, R. & Patnayakuni, N., (1997), `Technology Investment and Business Performance', Communications of the ACM 40(7), 89-97.
  • Sambamurthy V, Bharadwaj A. & Grover V., (2003), “Shaping agility through digital options: Reconceptualizing the role of information technology in contemporary firms”, MIS Quarterly 27(2), 237–63.
  • Shin N., (2001), `The impact of information technology on financial performance: the importance of strategic choice', European Journal of Information Systems 10, 236.
  • Tam, K.Y., (1998), `The impact of information technology investments on ¯rm performance and evaluation: evidence from newly industrialised economies',
  • Information Systems Research 9, 85-98.