Business

Research Journal of Information Technology 3(3): 118-132, 2011 ISSN: 2041-3114 ©Maxwell Scientific Organization, 2011 Submitted: August 26, 2011 Accepted: October 24, 2011

Published: October, 30, 2011

Information Technology Investments and Organizational Performance of the Telecommunications Industry in Ghana

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Godfred Yaw Koi-Akrofi and 2Joyce Koi-Akrofi Department of Engineering and Mathematical Sciences, School of Informatics and Engineering, Regent University College of Science and Technology, Dansoman, P.O. Box 1263, MP, Accra, Ghana 2 Technology Function, Programme Management Office, Vodafone Ghana, Accra, Ghana

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Abstract: 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...