THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY, A TOOL FOR ORGANIZATIONAL EFFICIENCY (A CASE STUDY OF CRUTECH OGOJA CAMPUS, CROSS RIVER STATE)

CHAPTER ONE

INTRODUCTION

1.1. BACKGROUND OF THE STUDY

In the realm of scientific challenges, the appearance of the world crisis shifted the focus towards knowledge as an economic factor, the role of knowledge as a distinct factor of production aiming at the renewal and the utilization of knowledge for the maintenance and survival of the organization. The organization based on knowledge belongs to the modern reality. The progress of any society depends in a decisive way upon the efficiency with which its human, natural and financial resources are used. A well-known teacher said: “efficiency represents an essential need for the economy and it must guide the economic actions and decisions at all times” (Cornescu, Creţoiu, Bucur, 2013). The world’s economy was confronted with a series of severe shocks and, from this perspective, “the nations started to assess and measure their wealth with the help of a unit indicator named the index of human development. Its structure comprises the quantitative economic manifestation of development and the value of the natural, human and social capital” (Angelescu, 2011). In order to be successful in a organizations, there is a need of convergence between knowledge and organization under the incidence of globalization as a holistic report, as “efficiency must have the same types of challenges in the context of a natural economy as those in a global economy: efficiency, strategic approach, competitive advantages” (Preda, 2006). The introduction of computer and advent of internet has changed the way we live in the modern world. To be successful in the 21st century, companies must take advantage of the new information technology especially in internet and globalization (Ayatse, 2006). Modern innovations have led to the description of the age in which we live as “the information age.” Information technology and Management therefore plays a vital role to the extent that timely access to information could save a life while improper management of information could lead to huge problems and losses of opportunities. Information technology and systems have revolutionized firms and industries, becoming the largest component of capital investment in many industrialized societies. Information systems are transforming organizations and the visible results of this include the increased use of cell phones and wireless telecommunication devices, a massive shift toward online news and information, booming e-commerce and internet advertising, and new Federal security and accounting laws that address issues raised by the exponential growth of digital information. The internet has also drastically reduced the costs of organizations operating on a global scale. According to Laudon and Laudon (2007), these changes have led to the emergence of the digital firm, a firm in which; most of the firm’s significant organizations relationships with customers, suppliers, and employees are digitally enabled and mediated. Information systems are essential for conducting day to-day organizations as well as achieving strategic organizations objectives. Nigerian industries would be non-existent without information systems. Some service industries such as finance, insurance, and real estate industries could not operate without information systems. In the 1950s, organizations embarked on the first widespread use of computers primarily as tools for recording and processing accounting transactions. This ICT has only really been a part of industries for about the last 60 years. Nonetheless, ICT is one of the most important resources in today’s organizations environment and successful businesses are investing heavily in ICT (Hagg, Cummings and Dawkings, 2014). The ongoing diffusion of Information Communication Technology ICT among firms is a current example of the dynamics of technological change and economic development (Koellinger, 2006). The effects of ICT on organizational efficiency are subject to debate because not all studies have demonstrated clear payoffs from ICT investments. Also, the results vary depending on how efficiency and ICT payoffs are measured and analyzed. For example, one empirical study finds positive impacts of ICT investments on productivity, but not on profits (Hitt and Brynjoifsson, 2013). Another study did not find positive effects of ICT capital on productivity, while ICT labor positively contributed to output and profitability (Prasad and Harker, 1997). An analysis of the profitability of ICT investments in an empirical study that explicitly considered the competitive dynamics in a market showed that the profits of non-adopters of ICT are reduced as other firms adopt new ICT. Furthermore, the gross profit gains of ICT adoption are related to firm and industry characteristics and the number of other users of the technology (Stoneman and Kwon, 2013).

1.2. STATEMENT OF PROBLEM

Solow (2013) states that approximately 70% increase in company production can be attributed to technological change. Heavy amount of capital has been invested to achieve technological change. ICT scope ranges from influencing employees and consumers to companies‘ output. Energy producing companies are also working towards cleaner production that is supported by ICT solutions. Investment in ICT has increased globally in the recent past (Hage and Dewar, 2007). Most organizations have realized that reliable and effective ICT systems can help them achieve and realize their goals quite easily. Organizations have allocated a bigger budget to ICT departments. Contributions made by ICT in organization have made companies to be more competitive towards their rivals and easy differentiation of products in the market. ICT has changed the way organizations operates in totality, from the way data is captured, processed and even output of the results on the activities of the company (Legris & Collerette 2006). Productivity is the fundamental economic measure of a technology's contribution. With this in mind, CEOs and line managers have increasingly begun to question their huge investments in computers and related technologies. The lack of good quantitative measures for the output and value created by IT has made the ICT manager's job of justifying investments particularly difficult. Academics have had similar problems assessing the contributions of this critical new technology, and this has been generally interpreted as a negative signal of its value (Legris & Collerette 2006). The effects of ICT on organizational efficiency are subject to debate because not all studies have demonstrated clear payoffs from ICT investments (Chan, 2011, Kohli and Devaraj, 2013). It is in recognition of the contribution of information communication technology (ICT) to organizational efficiency of this country and the fact that there is need for the diffusion of information on impacts of ICT which led to an increased awareness of the value of information systems in Nigerian Industries and organizations. However, concerted attempt to match this increased awareness with profitability of ICT investments of the campaign have been minimal giving rise to an information gap. It is in realization of the need to bridge this gap that this research work was carried out to assess the impact of Information Communication Technology (ICT) on Organizational efficiency in Nigeria.

1.3. AIMS OF THE STUDY

The major purpose of this study is to examine the impact of information communication technology, a tool for organizational efficiency. Other general objectives of the study are:

1. To examine the level of availability of information communication and technology (ICT) facilities in Crutech, Ogoja campus.

2. To examine the factors enhancing the use of information communication and technology (ICT) in Nigerian organizations.

3. To examine the impact of the role of Information Communication Technology (ICT) on organizational efficiency.

4. To examine the problems facing the effective use of information communication and technology (ICT) in organizations.

5. To examine the relationship between information Technology and organizational efficiency.

6. To suggest ways in which organizations in Nigeria can manage information communication technology.

1.4 RESEARCH QUESTIONS

1. What is the level of availability of information communication and technology (ICT) facilities in Crutech, Ogoja campus?

2. What are the factors enhancing the use of information communication and technology (ICT) in Nigerian organizations?

3. What are the impacts of the role of Information Communication Technology (ICT) on organizational efficiency?

4. What are the problems facing the effective use of information communication and technology (ICT) in organizations?

5. What is the relationship between information Technology and organizational efficiency?

6. What are the ways in which organizations in Nigeria can manage information communication technology?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no impact of information communication technology on organizational efficiency.

H1: There is a significant impact of information technology on banking operations in Nigeria.

Hypothesis 2

H0: There is no significant relationship between information communication technology and organizational efficiency.

H1: There is a significant relationship between information technology and banking operations.

1.6 SIGNIFICANCE OF THE STUDY

It is hoped that the management will use the findings as the base upon which to review organization performance and necessary improvements identified will be undertaken to enhance performance at the work place and increase operations efficiency. It is also hoped that the findings will also be used by human resource management to help in boosting employee performance. It is hoped that this study will be important to organizations in identifying unexploited opportunities in data management and communication systems and tools, and determine areas of wastage on these resources, implement controls and thus save on costs. It is also hoped that the findings of this study will also be beneficial to organizations and institutions in developing strategies for adopting information technology successfully and setting standards that should work towards improvement of service delivery. It is also hoped that human resource teams and policy makers will use the findings of this study to formulate viable policy documents that will effectively boost productivity and operation efficiency. Lastly, researchers may benefit from the study as it adds on to the growing body of knowledge in IT and will act as a source of reference for studies to be done on technology. It is in this light that the research aims at filling the existing academic gap by carrying out a research on the relationship between information technology and organisation performance.

1.7    SCOPE OF THE STUDY 

The study is based on the impact of information communication technology, a tool for organizational efficiency, case study of Crutech Ogoja Campus, Cross River state.

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 DEFINITION OF TERMS

Information: Facts provided or learned about something or someone or it is what is conveyed or represented by a particular arrangement or sequence of things.  

Technology: Is the collection of techniques, skills, methods, and processes used in the production of goods or services or in the accomplishment of objectives, such as scientific investigation. Technology can be the knowledge of techniques, processes, and the like, or it can be embedded in machines to allow for operation without detailed knowledge of their workings.

Information Technology:  Is the application of computers to store, study, retrieve, transmit, and manipulate data, or information, often in the context of an organizations or other enterprise