Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

The Impact of Information Technology Investment on the Financial Performance of the Banks

Author(s): Mohammad Naser Hamdan, Omar Khlaif Gharaibeh, Ali Zakariya Al- Quran, Nawras M. Nusairat

The aim of this paper is to investigate the impact of information technology investment on the financial performance of the Jordanian commercial banks over the period of 11 years from 2009 to 2019. The paper uses the feasible generalized least square regression technique. The results indicated that there is a positive relationship between (Number of ATM machines, Internet Banking Services (IBN) and financial performance, on the other hand, a negative relationship between (Cyber branches (CYB), phone banking services (PHB), and financial performance. However, there is no relationship between Software and Hardware Costing (SOHA) and financial performance. This paper recommends the managers of commercial banks in Jordan to expand the use of ATMs and Internet banking services (IBN) because it has a direct impact on increasing the profitability of these banks and improving their performance.

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