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Article Information:
Information Technology Investments and Organizational Performance of the Telecommunications Industry in Ghana
Godfred Yaw Koi-Akrofi and Joyce Koi-Akrofi
Corresponding Author: Godfred Yaw Koi-Akrofi
Submitted: 2011 August, 26
Accepted: 2011 October, 24
Published: 2011 October, 30 |
Abstract:
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The main objective of this study was to find whether IT investments had any positive effects on
organizational performance of Telecoms companies. Another objective was also to come out with a model to
explain the dynamics of IT investments covering from the factors that necessitates IT investments to the
performance of these investments. The focus was from 2000 to 2006. Mobile subscriber base in Ghana grew
from 215928 to 4966797, or by approximately 2300.21% from 2001 to 2006 (calculated from data taken from
Ghana’s National Communications Authority website www.nca.org.gh). This represents huge IT investments
made over the years. As to whether this investment resulted in the performance of these companies or not is
what this study tried to unravel. A diagrammatical model was developed as mentioned earlier. At the firm level
the results were consistent with the work of Alpar and Kim (1990) who also did not find positive effects of IT
investments on performance. Like Strassmann (1985), this study also found no correlation between IT and
Return on Investment (ROI) at the firm level. At the industry level however, there were positive effects. This
piece of work is purposely meant for all managers, IT professionals, and engineers who take decisions in
organizations, government institutions, as well as educational institutions pertaining to Information Technology
investments. It will help them make informed decisions, and also to maximize the performance of IT
investments once they are made.
Key words: Information, investments, mobile, organizational, performance, telecommunications,
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Cite this Reference:
Godfred Yaw Koi-Akrofi and Joyce Koi-Akrofi, . Information Technology Investments and Organizational Performance of the Telecommunications Industry in Ghana. Research Journal of Information Technology , (3): 118-132.
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ISSN (Online): 2041-3114
ISSN (Print): 2041-3106 |
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