DYNAMIC INFORMATION TECHNOLOGY CAPABILITIES (DITC) AND ORGANISATIONAL PERFORMANCE: THE MEDIATING EFFECTS OF PROCESS IMPROVEMENT IN KADUNA STATE

DYNAMIC INFORMATION TECHNOLOGY CAPABILITIES (DITC) AND ORGANISATIONAL PERFORMANCE: THE MEDIATING EFFECTS OF PROCESS IMPROVEMENT IN KADUNA STATE

Abstract:

Since the aftermath of global financial crisis in 2008, and its subsequent effect on the Nigeria financial sector, relentless competition drive banks to constantly adapt, reconfigure and renew, their core processes and capabilities in responses to market changes so as to improve performance. These routine activities are in line with the notion of dynamic capabilities (DC) in both theory and practices. However, there are still arguments on the mechanisms to which DC relate to organisational performance. Some studies established no significant relationship between DC and organisational performance, others reported that such relationship only exist through a chain of intermediate variables. Consequent upon these, the objective of this study is to examine the relationship between Dynamic Information Technology Capabilities (DITC) and organisational performance, and the mediating effect of process improvement on the relationship between DITC and organisational performance of banks. Also, to determines the best DITC predictor variable on the relationship thereof. The study adopted descriptive and correlation research design. Data was collected from the respondents at a point in time using cross sectional survey research design. The data was analysed using descriptive statistics, and correlation. Multiple regressions was used to test the hypotheses formulated, and the findings revealed that there is a significant positive relationship between DITC and organisational performance of banks in terms of marketing and customer services delivery in branches. The most significant positive relationship was found between IT infrastructure flexibility, followed by IT personal expertise, and then IT management capability. On the mediation test this study revealed that process improvement significantly mediated the relationship between DITC and organisational performance. Individually this mediation is higher in terms of knowledge creation, IT personnel expertise and IT management capability. However, IT infrastructure flexibility did not mediate the relationship between DITC and organisational performance. It is recommended that bank managers should invest in terms of money, time, and commitment to develop DITC to improve performance. For regulatory bodies, the goal of achieving IT standards within the banking sector should go beyond policy making. The process should include capacity building in partnership with academics where theories could be employed to detect the practices.

DYNAMIC INFORMATION TECHNOLOGY CAPABILITIES (DITC) AND ORGANISATIONAL PERFORMANCE: THE MEDIATING EFFECTS OF PROCESS IMPROVEMENT IN KADUNA STATE

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