I. J. of Business & Management Research
Research Article
Impact of IT on the Performance of Indian Service Industries
Author(s) : A.K. Behera*, N.C. Nayak and H. C. Das
Publisher : FOREX Publication
Published : 30 March 2014
e-ISSN :2347-4696
Page(s) : 1-15
Abstract
This research develops principles for an evaluation criterion of the performance of service firm. The aim of this paper is to provide an analysis on the relationship between Information Technology (IT) adoption and its usage and firm performance (banking and software firm) in India. Firm performance was measured with the help of three important variables: efficiency, effectiveness and profitability. Each one of the above has been described with a set of pretested questionnaires. Banks in India, in particular are geared for comprehensive banking solutions with extensive branch networks. Empirical data was collected in the year 2013. A scientific sampling scheme was implemented using the non-probability sampling technique. Perceptions of branch managers, staff members and customers were collected using survey methodology. Structured questionnaires were designed for the respondents in the selected firm. Data analysis was carried using statistical tools. The relationship between variables was checked by using Pearson’s correlation coefficient. The analysis suggested that IT usage has a positive linear relationship with financial performance. Firm performance was found to have a positive correlation with factors such as staff attitude towards IT usage, IT literacy level thereby increasing efficiency, effectiveness as well as profitability of service firm. In specific terms, tenure of IT adoption and utility of IT contributes much towards increase in performance of firms. Result from statistical analysis was validated with that achieved from ANN modeling.
Keywords: Information technology usage, firm performance, IT literacy level, financial performance, Artificial neural network modeling
A.K. Behera*, Department of Mechanical Engineering, ITER, SOA University, Bhubaneswar; Email: ajaybehera@yahoo.co.in
N.C. Nayak, Department of Mechanical Engineering IGIT Sarang, INDIA; Email: nayak.iem@gmail.com
H. C. Das, Department of Mechanical Engineering, ITER, SOA University, Bhubaneswar; Email: harishdas1965@gmail.com
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A.K. Behera, N.C. Nayak and H. C. Das (2014), Impact of IT on the Performance of Indian Service Industries. IJBMR 2(1), 1-15. DOI: 10.37391/IJBMR.020101.