Assessment of Information Technology Investment and Non-Financial Measure of Performance in Case of Commercial Bank of Ethiopia

Abstract

This study considered information system performance of non-financial explicitly. Instead, the implicit assumption was made that IT investment (or use) influences organizational (or sector) performance. Furthermore, Preliminary surveys and literatures on information system investments suggests a high increase on the level of investment, while there appears to be a lack of concrete empirical research on the area. In an attempt to explore the extent of this presumption, this research investigates the current state of IS investment and its process within commercial bank of Ethiopia several theories and empirical outcomes were proposed to explain the investment pattern, IT techniques and IT relationship on non- financial performance and post investment perception of IS adopters by the study subjects. To this end, the results of the study showed that information system investments are justified by information system with the investment pattern focusing mainly on transaction processing systems (86.7%), management information systems (78.8%) and communication systems (84.8%).Adding to this findings, the study showed the degree of perception investors have on the relative advantage brought by the system and the compatibility of the system with the organizations setting, in doing so the respondents showed a positive perception that was revealed with a mean value of 4.08 and 4.06, respectively: on a 1 to 5 scale where higher value represents higher agreement. Based on this findings, recommendations were made for a several composition of professionals on IS investment justification process.