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Evaluating the Impacts of IT Usage on Organizational Performance
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EUROPEAN ACADEMIC RESEARCH
Vol. V, Issue 9/ December 2017
Impact Factor: 3.4546 (UIF)
ISSN 2286-4822 DRJI Value: 5.9 (B+)
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Evaluating the Impacts of IT Usage on
Organizational Performance
DR. REVENIO C. JALAGAT, JR.
Assistant Professor
Al-Zahra College for Women, Sultanate of Oman
NASRA AMUR SAID AL-HABSI
Head, Student Services Section
A’Sharqiyah University, Sultanate of Oman
Abstract:
The present study is conducted to primarily determine the
relationship between IT usage and organizational performance as
applied to the chosen organization, International College of
Engineering and Management (ICEM). Specifically, it also investigates
which of the IT use variables significantly correlates to organizational
performance as well as assessing the impacts or influence of IT use on
the college performance according to identified variables. In order to
achieve the research objective, in the present study descriptive research
design employing the questionnaire survey method. Random sampling
method has been used to select 60 participants. According to the
samples identified, 60 sets of questionnaires were distributed with the
consent of the Dean and the Human Resource Department of the
college and all the questionnaires were retrieved after two weeks. To
analyze the data, statistical tools were used such as frequencies and
tables, weighted mean and standard deviation, correlation, T-Test and
regression analysis.
Key findings showed that, IT devices used in the college were
mainly desktop computers and the large extent of usage was also seen
on these devices. In determining the extent of agreement on the use of
IT in the college, unanimous responses were generated which they
categorically say “agree” on the following: the extent of agreement on IT
use on organizational performance factors such as performance &
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targets achievement, financial performance, accountability, quality
service and operational efficiency as evidenced by weighted mean
ratings and standard deviation. However; using the correlation and
regression analysis; findings showed that there is positive relationship
between these two variables: IT use and organizational performance r=
0.637 tested with 0.01 level of significance and with regression
analysis, it revealed that, with the IT use variables namely internet
applications, mobiles and devices, and data management system vis a
vis organizational performance, only the data management system
significantly correlates to organizational performance with p-value =
0.000 while the other two variables do not have significant relationship
on organizational performance. Furthermore T-test results indicated
that there is no significant difference between both respondents’
designation and gender on the extent of usage of IT devices/system in
the College. Based on the findings, the college should emphasize on
data management system considering that the regression results proves
that data management system significantly impacts organizational
performance. However, it is also recommended that this study shall be
subjected to further studies due to its limitations of scope and other
constraints as specified.
Key words: IT Usage, Data Management System, Mobiles and
Devices, Internet Applications, Organizational Performance.
1.1. INTRODUCTION
The evolution of technological advances had been noticed since
the 20th century when the use of information technology
experienced worldwide recognition. Even many people realized
its dynamic development in the mid-18th century which was
also the advent of industrial revolution (Tom, 1991). Because of
these changes, it influences various aspects of our daily lives
primarily in our homes, workplaces, companies and
establishments, in schools and universities and the country.
Recently, the increasing revolution of technology has been
experienced in global scenario and has become a global village
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where the utilization of computers and communications are
widely available, mobile phones, internet, satellite networks,
and others that provide the latest trends in communication that
are applicable in processing, storing and distributing wide
array of reliable information (UNDP, 2001). Moreover, in terms
of connectivity worldwide the existence of latest technologies
such as optical fiber technology, radio and satellites, microchips
have played a big role in electronically connecting thousands
and millions of people across the globe through wireless
communication. According to Evans and Wurster (1997), the
unstoppable changes that happen in the business environment
is the important consideration for information technology to
take place.
Undeniably, the emergence of Information Technology
(IT) is the product of the continuous advancement in technology
that is growing for centuries in response to the dynamic
changes brought about by highly competitive business
environment that needed the IT for an effective operation
particularly in achieving cost-effectiveness, improve efficiency
and the quality delivery of products and services to its clientele
(Allen & Morton, 2004). Furthermore, in relation to marketing
services the use of IT can be an effective toll for marketing the
products and services and establishing customer relationship
management database (Werthner & Klein, 2005; UNDP, 2001).
For many companies, utilization of IT has been
instrumental in developing solutions to business problems and
challenges as well as trouble shooting IT related problems,
developing and maintaining an effective and efficient decision-
making processes, meet the requirements for quality of services
and enhanced productivity, be competitive in the marketplace,
and become dynamically stable organization (Attewell & Rule,
1984; Molloy & Schwenk, 1995; Boynton, 1993). Accordingly,
the study of Cerere (1993) posits that, companies necessitate
adoption of IT in order to improve their operations mainly the
manpower management in manufacturing production and
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operations. He further stated that even though IT and
technologies has to evolve over period of time, its importance
should be recognized in the early stages of operation
considering that firms who would want to have organized, fast
and timely decisions can be addressed with IT in operational
aspects of the organization’s existence.
1.1. Research Problem
Attaining organizational performance has always been the focal
point of company’s operations and is always significant
discussions in management literatures that usually comprise
topics related to competitiveness, effectiveness, efficiency,
efficacy, financial stability and financial relevance. According to
Marmouse (1997), organizations build or developed its
objectives primarily to achieve the best organizational
performance and direct its operational processes to meet these
organizational objectives. Business environmental changes
contributes major influences in the way companies manage
their workplaces with regards to challenges brought by rapid
changes in utilization of internet, globalization, workforce
diversity, as well as changing work and family roles, and the
operational processes of the service sector.
Information technology also extend is usefulness in the
area of human resource management where Drucker (2006) had
emphasized that, in every organization people is considered the
main source of income generation. However; the operational
aspect of human resource was manually done in two centuries
and only in the 90s where the concept of electronic human
resource management was observed. This includes the strategic
human resource management that has been cited in the study
of Jalagat (2016) where effective use of human resource
management significantly impacts organizational performance.
So, the year 1990 marks the utilization of electronic human
resource management that has developed the IT into a
revolutionary business model that has been continually used
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since 2000 until recently its applicability includes virtual
learning environment and many activities thereby recognizing
the importance of electronic human resource management as
evidenced in the increasing use by companies on a daily basis
(Pourmirza, 2006). The application of IT into human resource
management can be justified into three main reasons: IT helps
organizations to achieve fast, and formalized operational
processes; ability of IT to manage complex problems and
situations on topics related to human resource management;
and the potential capability to evaluate and assess the needs of
human resource management and the actual application of
such human resource practices.
Example to this concept is the study conducted by Pulley
and Braunstein (1984) that established a linkage between the
use of IT and organizational performance that particularly
investigated the information services provided by firms in
relation to the IT use and findings revealed that there is
association of IT use to the increased economies of scope.
Related study was also conducted by Diewert and Smith (1994)
that investigated the extent of IT utilization to large Canadian
retail firms in the field of accounting. With the current
accounting framework used by these firms, they have found out
that the benefits and gains they have achieved for the large
volume of production is attributed to the technological
revolution that enabled them to keep track easily and at
increasing speed its purchases, sales and inventory
transactions using the latest computer software that had
proved to reduce inventory holding costs. However; the study of
Loveman (2001) revealed that there is no direct evidence that
IT has improved organizational performance which is contrary
to previous findings and the outcome of Weill’s (1990) study
that transactional IT proved to positively affects organizational
performance although informational or strategic IT shows no
positive impacts. Specifically, similar views from the findings of
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Pourmirza (2006) who proved that IT use significantly
correlates to organizational performance.
In relation to the above-mentioned discussions and
findings, related study will be conducted to the chosen
organization, the International College of Engineering and
Management situated in the capital city of Muscat, Sultanate of
Oman. The subject is one of the colleges operating in the
Sultanate duly supervised by Ministry of Higher Education. As
an educational institution, the utilization of IT has been
introduced in classrooms and in the operational aspect of the
college. However; the employees were still adamant whether
the IT has already been fully utilized or not which will in turn a
question that needed to be addressed institution-wide. This is
observed as the employees perceived that the IT is still
underutilized and the areas needed to be taken due
consideration for instance in the registration processes,
procurement processes, human resource management,
classroom instructions and others. Questions as to whether the
college has adopted an IT system that truly reflects the
efficiency of its services to their clientele. So, this research is
endeavored to assess the impact on the use of IT on the
organization’s performance.
1.2. Research Questions
1.2.1. What is the profile of the respondents and their use of
information technology?
1.2.2. What is the level of information technology usage at
International College of Engineering and Management (ICEM)?
1.2.3. Is there relationship between information technology (IT)
usage and the organizational performance at ICEM
1.2.4. Is there significant difference in the extent of usage of IT
systems and devices in the College when classified according to
gender?
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1.2.5. Is there significant difference in the extent of usage of IT
systems and devices in the College when classified according to
respondents’ designation?
1.3. Objectives of the Study
This study attempted to determine the role of information
technology on organization performance. The specific objective
of this study:
1.3.1. To know the profile of the respondents and their use of
information technology.
1.3.2. To determine the level of information technology usage at
International College of Engineering and Management (ICEM).
1.3.3. To examine the relationship between information
technology usage and the organizational performance at ICEM.
1.3.4. To investigate whether there is significant difference
between respondents’ designation and gender to the extent of
usage of IT devices/systems in the College.
1.4. Research Hypotheses
Ho1. There is no significant relationship between information
technology usage and the organizational performance at ICEM.
Ho2. The information technology variables namely: Internet
Applications, Mobiles and Devices, and Data Management
System do not significantly relate with Organizational
Performance
Ho3. There is no significant difference in the extent of usage of
IT systems/devices in the College when classified according to
gender.
Ho4. There is no significant difference in the extent of usage of
IT systems/devices in the College when classified according to
respondents’ designation.
1.5. Significance of the Study
Primarily, this study will aid organizations to re-examine their
performance in the utilization of IT and take corrective actions
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as appropriate to improve organizational performance
especially in the operational aspects of the organization and
achieve effective and efficient conduct of its operations. It can
also revitalize and improve its utilization of human resource
management practices in an electronically-based operation that
would probably boost employee performance thus,
organizational performance.
Secondly, the outcome of this study is essential for
organizations and businesses to tap and evaluate opportunities
for improvement as well as exploit the potentials for optimum
utilization of database management system, tools and other
resources and better manage the scarce resources by
implementing an effective management controls which in turn
minimize costs and gain higher returns.
Thirdly, the results of this study will provide benefits
the human resource department and teams in developing and
change its present system that will integrate in full capacity
the IT in evaluating and appraising its human resource and
build a viable policy incorporating the importance of integrating
the IT that will help organizations achieve productivity,
improved operational processes and an efficient operation.
Lastly, many researchers around the world may gain benefits
on the findings of the study by increasing its knowledge and
learning experiences through utilizing this study as input to
their studies and a ready references for relating it to their plan
or already started projects where this result would be best used
as reference. Hence, studies that provide a clear guidelines on
determining the relationship between the IT use and
organizational performance, this result would give a clear
evidence on establishing its relationship in the light of this
research.
1.6. Scope of the Study
This study specifically covers the technology use and its impact
to the chosen organization, the ICEM. It provide detailed
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account on the use of IT in the college in terms of: data
management system, performance & target achievement,
accountability, and quality of service/service delivery as its
measures on organizational performance
2. REVIEW OF RELATED LITERATURES
2.1: Introduction
Various authors and researchers have identified the importance
of information technology, the use of this technology and its
relevance to organizations and its relationship on
organizational performance. This section provides literatures
that will describe the variables that will be used in the study
and the development of theoretical framework evidencing the
flow of the research process.
2.2. Information Technology
Generally, technology refers to a set of methods, processes, tools
and techniques, machinery, equipment and skills that can be
offered to people through its products and services (Rezaiyan &
Taghi zadeh, 2007). Accordingly, data is a set of digital
elements in form of letter or symbol that are clear and specific
and can be subject to automatic processing (Shamszadeh, 2009).
There are also various definitions that defines information
technology.
According to Mashayekhi (2007) IT is a combination of
the ability to direct operational processes and the strategies
and methods in solving problems by utilizing computers.
However; Tambe & Hitt (2013) defined IT as a mechanism
whereby companies will endeavor through innovative ways of
operating and relay information to achieve economic gains. Lal
(2006) also stressed that, one of the vital activities in the recent
era is on how to address the shortage in labor or manpower that
is usually present in the IT industry and in both private and
governmental organizations as well as the costs and
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compensation that relates to this shortage (Mehri Nejad, 2002).
Several forces enable the development of IT which can comprise
of the microprocessor technology computers, communicative
network development and the fast development of internet to
name some of them (Montazer & Fathian, 2004).
According to Daft (1997), information technology refers
to anything that relates to computing technology which
encompasses the following: hardware, software, networking,
the internet and the people who have the think tank in
implementing and managing these technologies. Accordingly, it
can be described as a system that emphasizes the utilization of
software, hardware, database management,
telecommunications and information-processing technologies
that will be used to store, process and deliver the information
through communication (Hacker & Saxton, 2007). Interestingly,
IT has been usually utilized by managers and IT specialists to
manage their business operations directly controlling its
activities, the human resources and other related activities.
Overseeing the general operations as being the major
responsibility of managers, IT has been very important and
useful for managers in allocating its needed resources in
coordination with the various departments of the organization
to achieve success and completion of various projects. According
to Hobday (2000) information technology serve as a central key
for innovation and creativity. Peansupap and Walker (2005)
stressed that the use of IT is increasingly applied to
organizations because these organizations believed that IT
facilitates in greater extent effective communication, increase
productivity, improve integration and deliver quality products
and services (Bjork, 1999).
It is a proven reality that as firms grow, changes will
also take place that will eventually requires information
technology and increase its dependence to stay competitive and
survive in a competitive marketplace (Feeny & Willcocks,
1998). As Porter & Millar (1985) reiterated, organizations
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nowadays maximize the use of IT as an appropriate solution to
the growing business challenges and problems in order to come
up with improved productivity, product and service quality
delivery, enhanced decision making processes and
competitiveness to the marketplace including new markets and
an attempt to globalize its operation in a global business
environment. The linkage between optimum utilization of IT
and organizational mission should be taken due consideration
by managers and leaders by appreciating the importance and
capabilities brought by IT (Hacker & Saxton, 2007).
Hence, the evolution and development of IT has become
a growing concern and main features because of the large
magnitude information processed on a daily basis especially to
big companies particularly in the collection, preservation,
processing, retrieval and analysis of information related to
products and services. These complexities has led to the urgent
call for development of new technologies that precisely called
information technology that will cater to large databases of
data or information (Davenport & Prusak, 2000). Even then
that the life of IT implementation is considered shorter as
expected, it can be observed that the utilization of IT is growing
and developing rapidly that has given different definitions and
perceptions as well as interpretations to many scholars and
researchers that prompted them to come up common
understanding on the concept thereby calling for precise and
deep look (Hismanoglu, 2011). This gives rise to different
meaning and concepts that looks at IT as an avenue for
multiple definitions. Mantle (2006) has then define information
technology as collection, storage, organization, processing and
publishing information including sound, image, text or numbers
by using computers and telecommunications (Sherif & Xing,
2006). On the other hand, Moghli (2011) also defined
information technology as multimedia technologies comprising
of internet, software, hardware, computer, television,
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telephone, email, satellite, blogs, internetworking projects, and
others.
Its role is so vital that organizations whether old or new
must undertake to implement the IT in order to make wise and
well-calculated decisions, reliable data or information for
managers, and for well-placed strategies through technology
that will meet the aims of the organizations (Abzari et al.,
2007). Moreover; IT created a link between IT professionals,
organizations and industries and the people at large in
practically connecting them in different parts of the country
and in global scenario with short period of time or faster
communication and in the best possible manner. One of the
major roles of technology therefore is to eliminate the physical
boundaries between people and the nations around the world in
a wireless way communicate in a borderless world which they
usually call a global community. Also, utilization of IT in recent
years helped address traffic situations, secrecy in science
education, employment, cultural exchanges, lack of time,
competition, and the perceived lack of physical location
(Khoshsima, 2012). Information technology exist as a result of
the changing business environment whereby organizations
realized the importance of utilizing technology to improve its
current operations. Likely, the effective use of IT in managing
the organizations human resource department has caused the
management to expand its roles to integrate IT in functioning
its human resource management (Aliholian, 2001). The
emerging trend on IT use which once started in 1970s has
developed in growing trend the changing development of
technologies and new paradigms on using technologies in
various aspects of operations. For example, the evolution
genetic engineering has urged recipients to effectively use the
IT to address the problems and challenges related to the
strategic issue (Abtahi et al, 2006). This is also because of the
ever increasing pressures by organizations to change and
innovate for the better and adopt the changing organizational
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processes. Adapting with the business environmental changes
is a major issue that management and managers should act
upon to make sure that the organization’s survival is assured as
well as the growth and development in relation to the adaption
of those changes (Parsaei-Manesh, 2014). According to Jalagat
(2017), change comes from different dimensions and
encompasses a great significance to individuals, groups,
organizations, companies and others. Information technology
also contributes to the management’s ability to foster effective
communication and interactions to solicit timely and immediate
feedback that goes through with the organizational structure of
companies where this structure is vital to the organization’s
communication processes. It also causes speedy delivery of
information from the top management down to the lowest level
of the organizational structure hierarchy as well as impose
virtual networks and processes and works that require
enhanced technologies such as the development, distribution
and management of knowledge in a cutting-age era or real-time
data or information.
2.3. IT and Organizations.
Business organizations that includes educational institutions
have utilized for such long period of time the traditional means
of operations that have contributed to their achievement of
objectives however; because of competitions that arise between
different firms in different industries, the influence brought
about by technological advancement have changed the views of
these organizations to effectively conduct its operations in the
technological era where the competitions usually lies in the fast
and reliable delivery of products and services at minimum
costs. Needless to mention, the educational sector has been the
business counterparts in the development in honing the
knowledge, skills and abilities of the workforce. However; while
the educational institutions are expected to deal and implement
the advancement in technology, it is also but necessary to
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assess themselves on how effective is the utilization of IT
particularly in the administration of the institution or the
college and the ability of the faculty and staff in deploying and
using such technology. According to Nitterhouse (1999) the
utilization of IT has been at slow pace especially in the Non-
Governmental Organizations (NGO) compared to other
business counterparts because of the nature of transactions
that emanate from the grassroots level and those beneficiaries
are coming remote places where the existence of technology is
also less accessible. These hinder the development of the IT
utilization which according to Hacker and Saxton (2007) as a
secondary priority because more emphasis is on the
achievement of organizations mission and goals and its planned
activities that can be done in traditional way.
Historically, organizations, specifically Non-
Governmental Organizations have been behind their corporate
counterparts in adopting IT and have been relatively slow to
take advantage of emerging information technology
developments Nitterhouse (1999). Most of the NGOs adopt the
traditional (manual) methods by using computers for word
processing, spreadsheet and accounting applications, and
managing a patchwork of old and new elements that often do
not work well together. NGOs, unlike their corporate
counterparts, face some constraints that inhibit them from
adopting IT. These inhibiters include lack of budget to invest in
the latest and greatest systems and IT tools, lack of sustainable
capital for IT investment, an inability to pay competitive
salaries to technical personnel, and inability to build the
needed technical skills. Hence, the perceived lack of focus and
considerations relative to IT developments have contributed
some constraints in business developments and success
especially in coming up with time and well-informed economic
decisions.
Firms and businesses have seen the potentials for
advancement in technology although such development may
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produce benefits and challenges but many studies have found
out that the benefits supersedes the disadvantages in the IT
use and have proven to address the issues and problems
relative to fast and reliable services that saves time and
resources, general efficiency, flexible and product and service
quality improvements (Brynjolfsson & Hitt, 2006; Henz, 2002).
But realizing this may not be possible if the resistance level of
the employees are high and that the management’s perception
of new technology in IT utilization is confronted with financial
difficulties, human resources such as specialist and experts who
implement and monitor the extent of application of IT, lack of
knowledge and information from the agents and implementers,
and less support from the top management.
2.4. IT and Business Processes
Recently, reports and information have been communicated
that the development of technology through IT use have
contributed significantly to the organization’s structure,
operations and strategies which according to Evans and
Wurster (2007), the success of business as well as its operations
are largely dependent on how the technologies are utilized
effectively that also impacts the future implications of future
economic competitiveness of companies and the society where it
situated such that the development and application of such
technologies determines the rate of business success. For
instance, the world’s utilization of the worldwide web has
practically enabled organizations and firms to redesign and
repackage its business proposals and designs, improve its
current products and services, and apply reengineering of the
present business processes. It has also encourage more
interaction between companies and its clients in an easy and
less hassle business transactions thus, manage the transactions
efficiently and effectively in a digital and networking
capabilities with a wide range of opportunities for improvement
(Dennis, 2007).
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Furthermore, the use of technologies currently have provided a
wide range of processes and functions that are readily available
in firms and the marketplace that includes but not limited to
communication with counterparts and clients, business
processes and functions, monitoring with external
environments and its forces, and interacting with authorities
primarily regulatory and government agencies. Example, the
widespread application of the e-Commerce has allowed many
firms to integrate IT utilization and management with their
strategic plans and programs and commitment to provide easy,
cost-effective and well-placed solutions to problems in a
modernize means which can be called technological solutions
like the use websites (Bocij, 2003). It is also evident with the
evolution of the mobile and e-commerce technologies that
rapidly convert many individuals, industries and organizations
into a more informed entities where information is just within
rich which also the main considerations for strategic planning
and management (Evans & Wurster, 2007).
2.5. The Role and Use of IT in Organizations
In the context on global use of IT and other technologies that
may encompasses such technical infrastructure of software and
hardware, telecommunications where most firms consider it as
information and communications technology (ICT) or IT. The
importance of IT use for many organizations have been
internalized as means for optimizing firm’s processes and
operations and ideal solution to maximizing exchanges of
valuable information and or data. According to Porter (2001),
the efficient of IT not only assess the organization’s strategic
and tactical tools for the firm but it promotes competitiveness
when appropriately employed throughout the organization as it
potentially brings advantages that outweighs the costs and
highlights the sustainability of its operational success in the
long-run. It facilitates excellent communication or conversion of
data or information into meaningful results and that is sharing
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valuable information for decision makings between
departments as well as from top to bottom management where
dissemination of information takes place. Because of this, it will
establish good linkage between the organization and its
employees, clientele and partners that potentially eliminates
the hindrances to an effective sharing of information and in
achieving real-time information (Scott, 2001).
According to Diem (2007), IT utilization in an effective
way can result to new discoveries of information and enhance
creative thinking of new ideas and concepts that will result into
meaningful innovative business idea. Hence, the use of IT can
transform business leading to an improved operational
outcomes and performance, promote company and employee
competitiveness, improved brand image and market visibility,
enable organizations into an effective communication and
sharing of information, increase employee motivation, market
and business repositioning to gain advantage over existing and
potential competitors (Hagen, 2010).
2.6. Organization Performance
With the advent of technological advancement it is undeniable
that IT will enable organizations to make their business
profitable as it has become a major tool in dealing with the
many business functions, operations and development of new
and innovative products and services. According to the recent
trends and practices, information technology has become a
major considerations for many businesses specifically in dealing
with business processes and functions, operational activities, as
well as developing and innovating products and services.
Recently, about half of the companies operating globally were
able to spend 50% of the capital expenditures and investments
are focused on IT or ICT expecting that large return will be
obtained from such investment. However, many organizations
are still lagged behind on how the efficient and effective they
invest their funds into IT investments that serve as critical
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deciding factors for companies to pursue and considering the
lack of experts who will manage the investments which
precisely the reason why many firms fail as they fail to link IT
to business opportunities and profitable endeavors using the IT-
based investment.
Several authors and researchers have examined the
impacts and or influence of IT use on organization’s
performance whether products or service and found out the
positive relationship with these two main variables (Beckey,
Elliot, & Procket, 1996; McNutt, & Boland, 1999). Accordingly,
results also affirmed the relationship by offering
recommendations that IT has indeed plays a significant role in
the improvement of providing both the quality and quantity of
relevant information for decision makings for managers and
businesses as well as a baseline for product and service
innovations (Mano, 2009). Many companies set aside their
budget and resources in accordance with their goals and
objectives by maximizing the use of their resources on investing
into IT and have been proven through this research to perform
better in their workplaces than those that set less investment
on IT (McAfee & Brynjolfsson, 2008). In other words, achieving
higher performance requires considerable and good IT
infrastructure with good management practices in IT
utilization (Mwania & Muganda, 2012).
2.7. IT and Organizational Performance
The employment of IT can be recalled on the verge of its
development in the 1960's and 70's were vast of organizations
or businesses have utilized the technology especially in doing
routinely evolving jobs such as clerical and administrative
activities such as for examples accounting and bookkeeping
work (Bird & Lehrman, 1993). Furthermore, IT was also used
as support mechanism to address some issues on the company’s
internal and external environments that is expected to achieve
the organizational mission and objectives and consider other
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organizational system components (Blili & Raymond, 1993).
But even it was utilized the extent of utilization is still subject
to improvement and utilization as the application of IT is still
used in simple tasks and primary activities that its use is still
not reflective in addressing strategic issues and are totally
lacking such as applications related to enhancing the
organization’s position against competitors, moving into new
markets, and providing managers with better information for
effective decision making. In other words, it is more applied on
basic operations and that is perceived lack in utilizing the full
potentials on the IT. According to Bird & Lehrman (1993), the
use of technology nowadays especially the IT does not only
encompasses a data processing tool but has become a
competitive weapon that will be able to transform the structure
of industries and as such the rapid technological revolution on
the IT or ICT has made the business environment to be
competitive that many companies have determined and
reassess their own IT application to be consistently aligned
with their strategic objectives (Galliers, 1994).
According to the data provided by OECD (2003), the
emergence and rapid development of IT can be seen as its
strongest evidence in the developed countries and supported by
various studies it claimed that, the combination between
accounting and econometric methods are utilized with the IT
application that have been demonstrated as samples of
companies and businesses. For instance, in the study of Gretton
(2002), studying firm-level data from the Australian Business
Longitudinal Survey, found positive and significant links
between the use of IT and growth in both manufacturing and
service industry. Relevant study also conducted by Brynjolfsson
& Hitt (2003) examined the US firm-level data, findings
specifically revealed that IT positively relates to employee and
organizational productivity. On the other hand, Pilat & Wolfl,
(2004) investigated the role of ICT-producer and key ICT-
consumer sectors in determining the overall productivity
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growth in OECD (Organization for Economic Co-operation and
Development) countries; they found that the impact of ICT-
producer sectors is most significant in Finland, Ireland, and
Korea whereas ICT-consumer sectors in some countries,
remarkably US and Australia, had an impressive growth in the
second half of the 1990s. To validate these findings, analysis
was made by Hempell (2004) based on comparable panel of
Dutch and German firms particularly in the service sector and
the outcome showed that, ICT or IT utilization applied on
capital deepening and innovation showed that there is positive
impact between It and productivity.
More findings displayed the importance of IT on
businesses processes like the use of IT in The Massachusetts
Institute of Technology group in 1991 where their study
concluded that IT can enhance and coordinate with the many
factors of the organization that contributes to the success of the
business through fully utilizing the automation of information
and electronically transfer those information thereby realizing
the benefits it offers to the employees, the management and the
organization in general (Morton, 1991; Zuboff, 1988). Many
considered IT as an innovative mechanism to enable to finish
the job in a creative manner however; although its potentials
are huge enough but the extent of application of those benefits
vary on how the companies utilize it as to whether fully, half
and little utilization such that still it is subject to many
researches and discussions by authors, researchers, scholars, IT
experts on how it can be best managed and addressed
innovation at different levels of the organization which can be
done by IT.
Vast majority of authors and researchers claimed the
positive correlation between IT and organizational performance
as reflected by their activities with the IT basically in decision
making processes (Bhattacherjee & Hirschheim, 1997; Morris &
Westbrook, 1996; Porter & Millar, 1985). To demonstrate
through an example, IT can be utilized to increase the efficiency
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level of the various functions concerning the administration and
management functions in companies to achieve effectiveness in
both managerial and administrative functions. The meeting of
the task efficiently and effectively is what takes in adequately
applying technology in various organizational activities that
can give good and relevant data or information managers for a
well-informed decision makings. According to Zuboff (1988), the
effective use of IT can create and maintain consistent
competitive advantage and competitive edge of organizations
over their competitors because it enhance better production and
operation processes into variety of industries and are useful in
meeting sustainable business landscape.
According to Mitchell & Stone (1992), direct physical
measures of outputs and inputs provide an alternative metric
that permit process-specific comparisons of manufacturing
performance associated with alternative technological choices
and organizational designs. Other techniques to measure
productivity are the time-based measures for key production
operations. They are commonly used by industrial engineers
and production managers to plan schedules, to estimate costs,
and to monitor machine utilization rates in batch
manufacturing processes such as machining (Kelley, 1994).
According to Panko (1991), one measure of office productivity is
"output per hour". This measure can be calculated by dividing
units of output by the number of hours worked to produce them.
2.9. Conceptual Framework
The conceptual framework looks performance of organizations
as the dependent variables with mobile and handheld devices,
internet applications and data management systems being the
independent variables where achievement of objectives, service
delivery, accountability and operational efficiency measuring
the performance of organizations as presented in Figure 1.
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Independent Variables Dependent Variables
Information Technology Usage Organizational
Internet Applications performance.
Mobile & Handheld Devices Performance & Targets
Data Management Systems Achievements.
Financial Performance
Accountability
Quality of Service
Operational Efficiency
Figure 1. Modified from the work of Kimani (2015). Impact of
Information Technology on Organizational Performance: Case of
Population Services in Kenya.
3. RESEARCH METHODOLOGY
3.1 Research Design
In this study, the descriptive method of research employing the
questionnaire survey as its main data gathering tool has been
utilized. The purpose of using descriptive research is to describe
the characteristics of variables selected in the study. According
to Marsman (1999, p.66), “descriptive design is a purposive
process of gathering, analyzing and tabulating data about
prevailing conditions, practices, beliefs, processes, trends and
cause and effect relationship and then making adequate and
accurate interpretation about such data with the aid of some
simple percentile and statistical method”. To apply this design
in the present study, a cross-sectional study was conducted to
describe the population in terms of data and characteristics
where the quantitative research approach can be best applied.
3.2 Sample Design
3.2.1. Population
The population targeted for the study comprised of the
academic and non-academic staff in ICEM; at the time of the
study there were a total of 119 permanent employees.
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3.2.2. Sample Size
From the total population, the sample was selected using
simple random sampling method and was shown in the table 1.
Table 1. Population and Sample Size
Respondents Population Size Sample Size
Designation No. % No. %
Academic Staff 32 27 99 48
Non-Academic Staff 87 73 13 52
Total 119 100% 60 100%
** The population excludes the part-timers and staff under limited
contracts.
3.3 Data Collection
In this study, the research questionnaire was developed by the
researcher and sent to the adviser for comment and approval
before finally sending the questionnaires to the respondents.
Upon advice, the letter of consent was sent to the
administration of ICEM directed to the Dean of the College to
seek permission to distribute the questionnaires related to my
research and after approval, appointment was set with the
respondents for distributing the questionnaires. The 60
questionnaires were distributed one day after the approval and
was retrieved two weeks after. All the questionnaires were
retrieved with 100% retrieval ratio.
3.4. The Research Instrument
This study mainly utilized survey method and mainly used the
questionnaires as tool for gathering data. The questionnaire
developed by Kimani (2015) was reviewed and modified by the
present researcher with the help of supervisor. Final
questionnaire was divided into two parts: Part A and B. The
first part consists of the general information and profile of the
respondents classified as designation, level of qualification,
years of service in the college, and age while the second part
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describes the “Use and Impact of Information Technology” that
includes in details the questions on the use of IT, the IT
equipment utilize in the college, the extent of usage of IT, IT
usage in data management system, performance and targets
achievement, financial performance, accountability, quality of
service and operational efficiency.
Specifically, to assess the extent of usage of IT in the
college the use of Likert scale were utilized will be shown in
table 2.
Table 2. Likert Scale to measure the extent of IT use in the college
Value Limits Verbal Interpretation
5 4.21 - 5.00 Very Large Extent
4 3.41 - 4.20 Large Extent
3 2.61 - 3.40 Neutral
2 1.81 - 2.60 Little Extent
1 1.00 - 1.80 Very Little Extent
On the other hand, to evaluate the extent on the level of
agreement on the use of IT in the college, another Likert scale
instrument was used which will be displayed in Table 3.
Table 3. Likert Scale to evaluate the extent on the level of agreement
on IT use in the college.
Value Limits Verbal Interpretation
5 4.21 - 5.00 Strongly Agree (SA)
4 3.41 - 4.20 Agree (A)
3 2.61 - 3.40 Neutral (N)
2 1.81 - 2.60 Disagree (D)
1 1.00 - 1.80 Strongly Disagree (SD)
The use of Likert scale is endeavored in this study in order to
assess the use and the impact of IT in the college’s operation
and to measure how far the college is utilizing IT to effectively
manage its operations.
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3.5. Data Analysis
Based on the questionnaires, the data has been analyzed and
tabulated. Main objective of this research is to determine the
relationship between the IT _usage and organizational
performance. The data obtained from the questionnaires has
been imported to the computer program called the statistical
package for social sciences (SPSS) version 21 to calculate
frequencies and averages, standard deviation, weighted mean,
Independent Sample t-test, Pearson correlation, and regression
analysis. Specifically, frequencies and distribution were utilized
to analyze the profile and personal information of the
respondents while weighted mean and standard deviation were
used to analyze part B which is the assess the extent of
information technology usage. Independent Sample T-Test was
used to test the significant difference respondents’ designation
and gender to the extent of usage of IT devices/systems in the
College. However; to determine the relationship between IT
usage and organizational performance, Pearson Correlation
was used while regression analysis was used to find the
individual predictors of organizational performance. The
statistics used is tested at 0.05 and 0.01 level of significance.
3.6. Research Validity and Reliability
To ensure the content validity of this research instrument, pre-
testing was conducted into 20 employees in Al-Zahra who are
not the actual respondents of this study in order to check the
content as to the structure and layout, grammar and spelling
and to determine whether the information and the questions in
the content are free of biases. To test whether it is reliable, the
Cronbach Alpha was employed to test how reliable are the
questions and the results showed 0.680 which is categorically
reliable. Hence, the instruments used are assured to be valid
and reliable.
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4. DATA ANALYSIS AND INTERPRETATION
This section presents the results obtained from the statistical
tests used to analyze the data.
4.1. Designation of the Respondents
Table 4. Respondents’ Designation
Frequency Percent Valid Percent Cumulative
Percent
Academic 29 48.3 48.3 48.3
Non- 31 51.7 51.7 100.0
Valid
Academic
Total 60 100.0 100.0
Table 4 shows the frequencies distribution of the respondents
according to the designation. The figure shows that non-
academic staff accounts for 31 or 51.7% of the total sample
while academic staffs corresponds to 29 or 48.3%. This result
may not be the same if the total population of the college is
taken as sample however; it is safe to assume that the
distribution of the respondents according to designation is
almost equal.
4.2. Highest Level of Qualification of the Respondents
Table 5. Respondents’ Level of Qualification
Frequency Percent Valid Percent Cumulative
Percent
Secondary 8 13.3 13.3 13.3
Certificate/Diploma 10 16.7 16.7 30.0
Bachelor 13 21.7 21.7 51.7
Valid
Masters 25 41.7 41.7 93.3
Doctorate 4 6.7 6.7 100.0
Total 60 100.0 100.0
When sample was classified according to the respondents’ level
of qualification, table 5 shows that a considerable number of
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respondents have acquired master’s degree with numerical
number of 25 or 41.7% while those who have acquired bachelors
reach to 13 or 21.7%. About 10 out of the 60 respondents have
finished certificate/diploma or 16.7% and those secondary level
educated with 13.3%. But last in the list is the sample of those
staff who have finished the Doctorate degree only 6.7% or
equivalent to 4 staffs.
4.3. Years of Service of the Respondents
Table 6. Respondents’ service in years.
Frequency Percent Valid Percent Cumulative
Percent
Less than 5 years 18 30.0 30.0 30.0
5-10 years 21 35.0 35.0 65.0
Valid
11-15 years 21 35.0 35.0 100.0
Total 60 100.0 100.0
Table 6 shows the number of years in service of the respondents
and findings revealed that most of the respondents are between
5-10 years and 11-15 years respectively with a combined ratio
of 70% or equivalent to 70 respondents distributed equally
while 18 out of the 60 respondents are below 5 years of
experience. However, none of the respondents have experience
of 16-20 and more than 20 years respectively.
4.4. Gender of the Respondents
Table 7. Respondents’ Gender
Frequency Percent Valid Percent Cumulative
Percent
Male 39 65.0 65.0 65.0
Valid Female 21 35.0 35.0 100.0
Total 60 100.0 100.0
It can be clearly gleaned from table 7 that, the workforce at
ICEM are predominantly male with 65% rating or 39 out of 60
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respondents. While the female staff accounted to only 35% or 21
out of 60 respondents. Considering that the college is also
predominantly a male student population, the teachers who are
involved in the workforce are mostly male and the courses
offered are specialized in engineering and management where
many of the teaching staffs are also male based on the nature of
the course as well as the job which is fire safety.
4.5. Age of the Respondents
Table 8. Respondents’ Age.
Frequency Percent Valid Percent Cumulative
Percent
Below 20 10 16.7 16.7 16.7
years
21-30 years 16 26.7 26.7 43.3
31-40 years 18 30.0 30.0 73.3
Valid
41-50 years 9 15.0 15.0 88.3
Above 50 7 11.7 11.7 100.0
years
Total 60 100.0 100.0
Table 8 depicts the age of the respondents. It clearly shows that
most of the respondents are in middle-ages with 31-40 years old
accounting for 18 out of 60 or 30.0%. This is followed younger
blood of staff with age ranging from 21-30 years old with 16
respondents or 26.7; about 15.0% or 9 respondents are in the
age bracket 41-50; and 7 or 11.7% employees who have aged
more than 50 years old where it can be presumed that a portion
of this number are those in the teaching positions who are still
in position to teach.
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4.6. What IT device/s do you have at your disposal to
enable you to perform your duty?
Table 9. IT devices used in the workplace.
Frequency Percent Valid Percent Cumulative
Percent
Mobile Phone 8 13.3 13.3 13.3
Desktop Computer 46 76.7 76.7 90.0
Valid Laptop 4 6.7 6.7 96.7
IPad or Tablet 2 3.3 3.3 100.0
Total 60 100.0 100.0
With reference to Table 9 showing the usability of the IT
devices in the college, it can be gleaned that most of the
respondents with 46 out of 60 respondents have utilized the
desktop computers in their offices or 76.7%. This might imply
that, the college is still keen on using desktop which is still
conventional way of using the technology. A percentage of
13.3% of the total respondents or 8 out 60 respondents who
makes use of mobile phone as devices in the workplace. On the
other hand, very few of the staffs have utilized laptops in their
offices with only 6.7% or 4 out of 60 respondents and it may also
indicate that, these respondents upon their option may bring
with them personal laptops as an alternative choices for
processing information or data. Lastly, the use of Ipad/Tablet is
seldom used in the college and besides no other tools than those
previously mentioned had been specifically identified.
4.7. Kindly indicate the extent of usage of the following
systems/devices in the College.
Table 10. Extent on the use of IT systems/devices in the College
Systems/Devices Weighted Mean Interpretation
Mobile devices and tablets 3.52 Large Extent
Laptops and Desktops 3.85 Large Extent
The Intranet 3.32 Neutral
CRM (Customer Relationship Management) 2.92 Neutral
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HR System 2.93 Neutral
Accounting Software and Programs 3.00 Neutral
Office 365 (email/OneDrive/Yammer, etc. 3.07 Neutral
Total 3.23 Neutral
Table 10 displays the extent of usage of IT systems and devices
in the college. Results revealed that large extent of usage which
is the highest can be observed with the laptops and desktops
with mean rating of 3.85 and followed by also large extent
shown with the use of mobile devices and tablets with 3.52
weighted mean rating. These results are consistent with Table
9 where desktops are most commonly used in the College. All
other responses are neutral which might indicate that these
systems are still not clear to the respondents and the
management may have not utilized these tools at its full extent.
Table 33. Respondents’ Perception on the Usage of IT Data Management
System in ICEM.
N Mean Std.
Deviation
1. The College use of IT data management system has 60 3.88 .555
improved their services towards stakeholders.
2. The College use of IT data management system 60 3.98 .676
facilitates fast collection of data and information.
3. Using IT data management system helps the 60 4.00 .759
management achieve timely and accurate decisions
from top management down to department level.
4. Using IT data management system enable managers 60 4.08 .696
and heads to decide quickly and assured of reliable
information.
5. The use of IT data management system enhances better 60 3.98 .701
knowledge and understanding on how the organization
operates and arrives at right decisions.
6. The use of IT data management system helps improve 60 4.10 .656
the operational efficiency of the administrative and
teaching staffs in the College.
7. Using IT data management system has aided the 60 4.12 .691
management in updating its records and organizing
large volume of files.
Valid N (listwise) 60
1=SD (1.00-1.80); 2=D (1.81-2.60); 3=N (2.61-3.40); 4=A (3.41-4.20); SA (4.21-5.00)
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Table 11 shows the perception on the use of IT data
management system in ICEM. Specifically, it shows that IT
data management system has helped the management in
updating its records and organizing large volume of data files
as evidenced by mean rating of 4.12. Secondly, IT data
management system has aided the administrative and teaching
staffs to improve its efficiency in the conduct of its operations
with 4.10 mean rating which may indicate that IT should be
fully utilized in order to maximize individual and
organizational efficiency in the work. The more emphasis on
data management system will show favorable results. IT has
also enable managers and heads to access reliable information
quickly with mean rating of 4.08 which further indicates that
with IT data management system well-informed decisions will
timely be achieved which further improves the decision-making
processes of the college. The use of IT proves to be useful to the
management in meeting its requirements on timely
dissemination of information to different stakeholders.
Moreover; IT has enabled the management with its
managers and owners to provide up-to-date and accurate
decisions that covers data or information from the top-to-bottom
communication where the employees in the lower ranks can
access those information and be more encouraged to participate
in the activities of the organization and with 4.0 mean rating, it
can be interpreted that there is agreement by the respondents
with regards to the ability of the management in the use of IT
to aid managers in achieving time and accurate management
decisions. Both responses on the other hand suggest that, IT
can both facilitates fast collection of data and information and
enhances better knowledge and understanding on how the
organization operates with both achieved 3.98 ratings that
could be interpreted that, IT has overpassed the used to be
manual operation tremendously and has provided a better way
of doing operations as the employees become aware and
understand how the operations can be done with efficiency and
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operates with better chances of arriving at right decisions and
easy to track with if there are deficiencies and troubles while in
operation. Lastly, the IT data management system has
contributed to the delivery of effective services towards
stakeholders such as students, suppliers, government offices,
management, etc. as shown with each mean rating of 3.88.
Table 12. Extent of agreement of IT usage on performance & targets
achievement in ICEM.
N Mean Std.
Deviation
1. The use of IT has helped the management to establish 60 4.00 .638
effective target monitoring and reporting.
2. The use of IT facilitates planning and incorporate 60 3.85 .685
quantitative targets.
3. The use of IT facilitates timely gathering of data and 60 4.03 .712
the analysis of the gathered data.
4. Using IT has helped improve employee productivity and 60 3.95 .746
flexibility.
5. Using IT achieves departmental goals and objectives of 60 3.95 .746
effective communication of information.
Valid N (listwise) 60
1=SD (1.00-1.80); 2=D (1.81-2.60); 3=N (2.61-3.40); 4=A (3.41-4.20); SA
(4.21-5.00)
The Table 12 describes the extent of agreement on IT use on
performance and target achievement in ICEM. Individually, it
shows that IT use facilitates timely gathering of data and the
analysis of the gathered data on the top spots with mean rating
of 4.03. This might mean that, the functions, processes and
decision makings have been made on time with the use of
information technology thereby achieving a well-informed
decisions timely for the top management to make actions from
those decisions. The use of It has also been proven to help
management in establishing an effective target monitoring and
reporting having a mean rating 4.00 which can be interpreted
that, reliable and fast processing of information will lessen the
waiting period for the decision makers to decide and in
reviewing and monitoring the jobs to be done hence it aids the
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management to be organized with the work as well as monitor
the reports from time to time which many may have forgotten
to recall and take necessary actions. Responses also shows that,
IT has both aided the management in improving the employee
and company productivity, flexibility and helped achieves
departmental goals and objectives to effectively communicate
information respectively with each shared 3.95 mean rating.
This might indicates that employees become more productive
with the IT use in terms of efficiency and effectiveness in
completing their work tasks with ease, quality and reliability
since the technology has enabled them to perform corrective
measures with the work done through for example application
of systems and programs and which in turn improve company
productivity.
Table 13. Extent of agreement of IT usage on financial performance
in ICEM.
N Mean Std.
Deviation
1. Utilizing IT will reduce expenditures such as salary 60 3.82 .596
cost of hiring more employees.
2. The use of IT helped the management developed 60 3.88 .640
profiles of prospective clients and measure sales,
profitability as well as customer retention.
3. Investing in IT will improve the business processes and 60 3.98 .624
innovative features of service offerings of the College.
4. The use of IT allow access to as many potential 60 3.93 .710
students as possible for more income opportunities.
5. Utilizing IT will increase sales and profitability by 60 4.05 .534
delivering excellent service to clientele.
Valid N (listwise) 60
1=SD (1.00-1.80); 2=D (1.81-2.60); 3=N (2.61-3.40); 4=A (3.41-4.20); SA
(4.21-5.00)
Table 13 describes the extent of agreement on IT use on
financial performance in ICEM. In general, the results
displayed that the respondents unanimously agreed on the
questions related to the IT usage and its positive impacts on
financial performance as evidenced by 3.93 ratings which is in
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the range of 3.41-4.20 indicating “Agree” ratings which is also
consistent with the individual ratings. Top among the list
expresses that IT use increases sales and profitability through
provision of excellent service to the clientele with 4.05 mean
ratings which can be interpreted that when the management
will be able to utilize IT effectively and efficiently will result to
service quality and excellence in both its operations and in the
teaching field that will in turn increase its sales with more
expected student registrations and increase its profits as well.
This result is consistent with the study of Harris and Katz
(1991) and Bender (1986) whose findings showed that IT use
positively correlates the several performance measures and
ratios even though its relationship is considered weak. This is
followed by the finding that, investing in IT will improve the
business processes and innovative features of service offerings
of the College having 3.98 weighted mean rating. Thirdly,
responses show that IT can help the management provide
access to as many potential students as possible for more
income opportunities accounting for 3.93 mean rating which
can be interpreted that the college may need to upgrade its
present system to encourage more potential students and can
accommodate more with the IT use through its database
management system.
Furthermore, 3.88 mean rating revealed that the
respondents expressed its agreement on the use of IT in helping
the management developed profiles of prospective clients and
measure sales, profitability as well as customer retention.
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Table 14. Extent of agreement of IT usage on accountability in ICEM.
N Mean Std.
Deviation
1. The use of IT helped the management in evaluating 60 4.02 .701
the budget versus actual on income and expenditures.
2. The use of IT has aided the management to better 60 4.07 .634
serve the students and other outside parties.
3. The use of IT enables the management to develop 60 4.02 .701
formal communication and procedures to be followed
by employees.
4. Using IT data management system has established a 60 4.03 .758
permanent file of systems and procedures to remind
the employees of their responsibilities and
accountabilities.
Valid N (listwise) 60
1=SD (1.00-1.80); 2=D (1.81-2.60); 3=N (2.61-3.40); 4=A (3.41-4.20); SA
(4.21-5.00)
As shown in Table 14, the feedback from the 60 respondents
showed that, on the average they all responded with “agree”
responses which might mean that they agree that IT use
promotes accountability as applied in the chosen organization,
ICEM. The usefulness of IT to establish accountability by the
management and their workforce is favorable. In details, with
the mean rating of 4.02, it is the top priority according to the
respondents by recognizing that, IT enables the management to
develop formal communication and procedures to be followed by
employees. Although the college still uses the paper printed
communications through memorandums and letters, they
alternately use emails and other electronic means in
communicating its day to day instructions and information on
daily basis where most employees believed that it is easier,
faster and can be acknowledge immediately rather than the
printed paper communications. On the other hand, IT has also
aided the management in evaluating its budget against actual
budgets and expenditures with the use of its accounting
software and programs being a product of IT. The package
program has helped them in greater extent in analyzing
financial statements as well as its income and expenditures
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budgets as evidenced with the 4.05 mean rating which can be
interpreted as a good indication of the use of IT in the college.
Thirdly, IT has in fact helped the college in providing
better service in the college by actively responding to student
complaints and queries and settle it with agreement with not
only the students but the other stakeholders. Because of IT
utilization, the service provided by the college and its
management exceeded its expectations resulting to satisfaction
to the stakeholders and most especially the students. Finally,
both responses based on the questions provided the same
results with both resulting 4.07 respectively recognizing that,
IT has aided the management to better serve the students and
other outside parties and has established a permanent file of
systems and procedures to remind the employees of their
responsibilities and accountabilities.
Table 15. Extent of agreement of IT usage on quality service in ICEM.
N Mean Std.
Deviation
1. Using IT improves the quality of service delivery to 60 3.98 .596
students and other beneficiaries.
2. Using IT has aided the management to communicate 60 3.97 .581
effectively to its beneficiaries and partners in service
delivery.
3. Using IT has facilitated the improvement of 60 3.83 .642
management plans and in the implementation of
projects and activities in dealing with the students and
other parties.
4. Using IT in the area of social media helped the college 60 3.90 .602
tapped its beneficiaries and collaborate with partners.
Valid N (listwise) 60
1=SD (1.00-1.80); 2=D (1.81-2.60); 3=N (2.61-3.40); 4=A (3.41-4.20); SA
(4.21-5.00)
Data in Table 15 displays the extent of agreement on IT use in
quality service in ICEM. The outcome revealed that in general,
the respondents unanimously to respond with “agree” feedback
affirming indeed that IT impacts quality service in the case of
ICEM. Individually, it also depicts that using IT improves the
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quality of service delivery to students and other beneficiaries
with 3.98 rating and followed by responses that with 3.97, using
IT has aided the management to communicate effectively to its
beneficiaries and partners in service delivery. It may imply that
the management of ICEM have benefited with the use of IT
although not experienced sophistication on IT use and has
proven that IT improves their quality provision of service to the
students and other operational processes and communicate to
their stakeholders with ease and less problems. Also, IT enable
the management to communicate to the students, partners and
counterparts and its suppliers with the use of IT through social
networks which in many cases communication through
WhatsApp, messenger, mobile services and others. Further,
with the mean rating of 3.90, it is agreeable by the respondents
that IT has helped greatly in communication the management
through its stakeholders with less costs but effective ways of
sharing the college information and updates. Last but not the
least, IT has facilitated the improvement of management plans
and in the implementation of projects and activities in dealing
with the students and other parties having mean rating of 3.83
which might mean that IT has become useful in the delivery
class instructions and projects whether its student works or
collaborative works between the teachers and the students.
Table 16. Extent of agreement of IT usage on operational efficiency in
ICEM.
N Mean Std.
Deviation
1. Using IT helped the management to deliver the service 60 3.92 .561
efficiently and effectively.
2. The use of IT helped the management provide accurate 60 3.88 .555
financial data.
3. Utilizing IT has enabled the management to finish 60 3.95 .565
business transactions with speed and accuracy.
4. The management has benefited the use of IT by 60 3.92 .591
effectively utilizing their IT equipment for quality
service.
Valid N (listwise) 60
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1=SD (1.00-1.80); 2=D (1.81-2.60); 3=N (2.61-3.40); 4=A (3.41-4.20); SA
(4.21-5.00)
From Table 16 shows the extent of agreement on IT use on
operational efficiency in ICEM. Totally, the average rating of
3.92 revealed that the extent of IT impacts or promotes
operational performance that also signifies the respondents’
feedback which is “Agree”. Preferential attention was taken on
the question “utilizing IT has enabled the management to finish
business transactions with speed and accuracy” having mean
rating of 3.95 classified as an “agree” response which can be
implied that the accuracy and speed of transactions especially
in the administration department is manageable and
controllable with the use of IT and transactions or processes
that use to be finished in longer period can normally be done in
shorter period. This is also applicable in the academic
department where the teaching staffs begin to find the long-
term benefits through the use of IT in managing class
instructions, marking and other related activities. This is
followed by the response that “using IT helped the management
to deliver the service efficiently and effectively” with 3.92 rating
which the college management has proven of its importance in
delivering efficient and effective service delivery. IT has also
benefited the management by “by effectively utilizing their IT
equipment for quality service” with its 3.92 rating showing that
more IT resources and using it effectively will produce good
outcomes and productivity. Even though the IT equipment use
in the college may not be as competitive with the rivals but the
IT utilization has been starting to be sophisticated like the use
of programs, systems and other software that can improve their
processes. Last in the order emphasized that “the use of IT
helped the management provide accurate financial data or a
mean rating of 3.88. Systems used in sales data generation,
payments system and financial statements are managed by the
college with its IT accounting system.
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Table 17. Summary of tables on the extent of agreement on IT use on
organizational performance.
IT Use Variables Weighted Verbal
Mean Interpretation
Extent of agreement on IT use on performance &
targets achievement in ICEM. 3.96 Agree
Extent of agreement on IT use on financial
performance in ICEM. 3.93 Agree
Extent of agreement on IT use on accountability in
ICEM. 4.04 Agree
Extent of agreement on IT use on quality service in
ICEM.
3.92 Agree
Extent of agreement on IT use on operational efficiency
in ICEM. 3.92 Agree
1=SD (1.00-1.80); 2=D (1.81-2.60); 3=N (2.61-3.40); 4=A (3.41-4.20); SA
(4.21-5.00)
In summary, the table above depicts that the extent of
agreement on IT use on organizational performance and
individually it shows an “agree” response which might mean
that IT use influences or impacts favorably on organizational
performance in different performance outcomes such as
performance and target achievements; financial performance;
accountability; quality service and operational efficiency. So, it
is undeniable that utilizing IT plays significant role in
achieving organizational performance based on the feedback
from the respondents in this study and as applied to the college,
ICEM.
4.8. Correlation, Regression and T-Test
Correlation analysis using the Pearson correlation was utilized
in order to determine the relationship between IT use and
organizational performance. The linear dependence between
these two variables are tested at 0.01 level of significance.
Accordingly, the results from the analysis can be broken down
into three outcomes: 1 for positive total correlation, 0 for no
correlation and -1 for total negative correlation. Moreover,
using the downhill linear relationship of correlation coefficient
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as cited in the study of Jalagat (2017) suggests that, 0 means
no relationship;.30 is considered weak correlation; 0.50 is
moderate; and 0.70 is strong correlation. In application, the
results of analysis can be drawn from the tabular presentation
in Table 18.
Table 18. Correlation between IT Usage and Organizational Performance.
Extent of Use of Organizational
IT in the College Performance
Pearson 1 .673**
Extent of Use of IT in theCorrelation
College Sig. (2-tailed) .000
N 60 60
Pearson .673** 1
Organizational Correlation
Performance Sig. (2-tailed) .000
N 60 60
**. Correlation is significant at the 0.01 level (2-tailed).
Table 18 shows result obtained by using the Pearson
Correlation coefficient to determine the relationship between
the IT use and Organizational performance. It clearly revealed
that there is positive relationship between the College’s IT use
and Organizational Performance with r=0.673 tested at 0.01
level of significance. This can be interpreted that the more the
college utilize its IT would positively contributed to
organizational success. This result is consistent with the many
studies where their findings show IT use is significantly
correlated with organizational performance (Beckey, Pulley and
Braunstein; 1984; Elliot, & Procket, 1996; McNutt, & Boland,
1999; Hempell, 2004; Pourmirza, 2006). Based also on the
assessment on the extent of use on organizational performance
as summarized in Table 17, it supports the hypothesis that
there is significant relationship between IT use and
organizational performance. Therefore, the null hypothesis is
rejected and the alternative hypothesis is accepted that there is
relationship between IT use and organizational performance as
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evidenced by the results of statistical computation. However,
considering the downhill linear correlation of coefficient, it
shows that the extent of relationship is moderate which might
mean that the results may not be conclusive and thus, are not
perfectly correlated.
On the other hand, regression analysis was utilized in
order to determine the significant relationship between IT use
as expressed in three variables namely: Internet applications;
mobiles and devices; and data management system vis a vis the
organizational performance. The objective is to evaluate
individually which of the independent variables significant
relates to organizational performance although in general there
is significant relationship between IT use and organizational
performance from correlation analysis. The detailed
presentation can be seen in Table 19 in the succeeding section
as shown.
Table 19. Relationship between IT Usage: Internet Applications,
Mobile Devices, Data Management System and Organizational
Performance.
Model Summary
Model R R Adjusted Std. Error Change Statistics
Square R Square of the R Square F df1 df2 Sig. F
Estimate Change Change Change
1 .589a .346 .311 .40019 .346 9.895 3 56 .000
a. Predictors: (Constant), Data Management System, Internet Applications, Mobile &
Devices
ANOVAa
Model Sum of Squares df Mean Square F Sig.
Regression 4.754 3 1.585 9.895 .000b
1 Residual 8.969 56 .160
Total 13.723 59
a. Dependent Variable: Organizational Performance
b. Predictors: (Constant), Data Management System, Internet Applications, Mobile &
Devices
Coefficientsa
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Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 1.938 .391 4.950 .000
Internet Applications .092 .072 .154 1.275 .208
1 Mobile & Devices .142 .071 .247 1.991 .051
Data Management .301 .108 .346 2.794 .007
System
a. Dependent Variable: Organizational Performance
Table 19 reveals the computed regression analysis to determine
specifically which of the IT Use variables that significantly
relates to organizational performance. Firstly, the model
summary indicates that, the R²= 0.346 shows that 34.6% of the
variation of independent variable which is the organizational
performance is caused by the independent variables namely the
internet applications, mobile and devices, and the data
management system while 65.4% cannot be explained by these
variables and with only 0.40019 margin of error. However; the
ANOVA regression results indicate the model use is fit and
appropriate with F=9.895 and with 0.000 significance which
further means that the results provided in this statistical test is
reliable. With regards to determining the relationship between
the independent and dependent variables, its depicts that with
the IT use variables, only the data management system
significantly correlates with organizational performance with p-
value 0.007<.01 level of significance while the other variables
such as internet applications and the mobile and device have no
significance with 0.208 and 0.051 respectively. The significant
relationship between data management system and
organizational performance agrees with the mean rating of 4.02
which is interpreted as “agree” which can be gleaned from
Table 11. This is result affirmed the study Davenport & Prusak
(2000) who concluded that IT and other technologies promotes
organized data management by developing large databases to
cater to wide range of data or information. Hence, good data
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management system will enable the management to achieve
good performance outcomes.
Table 20. T-Test on the extent of usage of IT Devices/Systems in the
College (Gender)
Gender Overall Mean T-Test Sig. Decision
Male Female @.05 (2-Tailed)
Extent of Use of 3.58 3.72 -1.116 0.269 Ho3, Accepted
IT in the College
*Significant at 0.05 level (2-Tailed)
Table 20 clearly showed that there is no significant difference
between the respondents’ gender and the extent of usage of IT
devices/systems in the College tested at 0.05 level of
significance (p=.269>0.05). Therefore the null hypothesis is
accepted. This further entails that the male and female
respondents do not vary in their perceptions as supported by
the similarity of mean ratings of 3.7176 over 3.5754
respectively.
Table 21. T-Test on the extent of usage of IT Devices/Systems in the
College (Designation)
Designation Overall Mean T-Test Sig.
Academic Non-Academic @.05 (2-Tailed)
Extent of Use of IT in 3.6231 3.6271 -0.029 0.977
the College
**Significant at 0.05 level (2-Tailed)
Results from Table 20 explained that there is no significant
difference between the respondents’ designation and the extent
of use of IT devices/system in the College at 0.05 level of
significance (p=.000<0.01). This may mean that regardless of
designation of the respondents, the same perceptions with
regards to the extent of usage of IT devices/systems in the
College with the similarity of their mean ratings.
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5. SUMMARY OF FINDINGS, CONCLUSION &
RECOMMENDATIONS
This chapter discusses the summary of findings, conclusion and
recommendations. To achieve the research objective, results
from the statistical analysis will be summarized as basis for
conclusion and recommendations.
5.1. Summary of Findings
Summary shows that, the most of the equipment and IT devices
used in the college includes desktop as it accounts for 76.7%
while only 3% participants use laptop. Consistently, the results
showed that the large extent of its usage is through laptops and
desktops with 3.85 and followed by mobile devices and tablets
with 3.52 and the rest revealed neutral responses with the
intranet, CRM, HR system, accounting software and office 365.
This clearly indicates that the college is still not exposed with
current systems and programs that can enhanced the processes
and are mostly accepted by many business nowadays.
In terms of the extent of agreement on IT use on
organizational performance, the outcome displayed that
according to the summary table, all the responses on
organizational performance variables such as performance &
targets achievement; financial performance; accountability;
quality service; and operational efficiency; the responses
unanimously stated an “agree” response which would mean
that IT use impacts or influences the performance level in
organization. This is also evidenced with the correlation
coefficient r= 0.673 at 0.01 level of significance where the
relationship is moderately correlated. Indeed it can be safely
assumed that there is moderate relationship between IT use
and organizational [Link] result is consistent with
the findings in various studies that affirms the positive
relationship between IT use and organizational performance
(Beckey, Pulley and Braunstein; 1984; Elliot, & Procket, 1996;
McNutt, & Boland, 1999; Hempell, 2004; Pourmirza, 2006).
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However, assessing in details the significant predictor of
organizational performance regression analysis has been used,
the results revealed that only the database management
system significantly correlates to organizational performance
with 0.007 significance while the other variables such as
internet applications and mobiles/devices have no significant
relationship with p-values 0.208 and 0.051 respectively. This
holds the fact that, companies should give emphasis on
developing and maintaining a good database management
system that is supported by the hypothesis assumed in this
study. Utilizing T-Test to test the significant difference using
respondents’ gender and designation variables vis a vis the
extent of usage of IT devices/systems, findings revealed that
both gender and designation have no significant difference on
the extent of usage of IT devices/systems with p-values 0.269
and 0.977 respectively.
5.2. Conclusion
From above findings, conclusion can be drawn. Firstly, the
college is still using desktop as its IT devices in the offices while
less usage on laptops. This is also supported by having its large
extent on the use of laptops and desktops while less application
on the following systems: intranet, CRM, HR system,
accounting software and office 365. On the other hand,
evaluating the extent of agreement of IT use on organizational
performance, it can be concluded that the respondents
unanimously “agree” on the impacts of IT usage on
organizational performance variables such as performance &
targets achievement; financial performance; accountability;
quality service; and operational efficiency. Moreover, it can also
be concluded that there is moderate relationship between IT
use and organizational performance using the statistical tool,
the correlation coefficient. While using the regression analysis
finally, the three IT variables such as internet applications,
mobiles/devices, and database management system; clearly the
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results contributes to concluding point that only the database
management system significantly correlates to organizational
performance. Therefore, more emphasis should be taken into
consideration on the systems/applications used in database
programs although there is also need to consider the internet
applications and the devices in some extent as the case maybe.
5.3. Recommendations
Based on the findings and conclusion, the recommendations can
be offered as basis for the college to improve their current
operations and gain competitive advantage over their
competitors.
1. There is a need for the college to upgrade themselves with
the current technologies whether in equipment and in
systems and software considering that the results revealed
the less utilization of such systems and programs. To be
updated and competitive, the college can perform
benchmarking with top performing colleges and universities
in order to copy those best practices that can be best applied
in the college settings.
2. Desktops are considered obsolete nowadays as there are
laptops which are handy and in terms of mobility you can
work anywhere to deal with transactions and so, if there are
possibilities to replace those desktops with laptops and
other new devices, it would serve the purpose and provides
more benefits to the workers and the entire college as well.
With good internet connections and connectivity, the laptop
can serve its purpose with convenience rather than
maintain desktop computers.
3. The college should device ways and means to implement the
systems and programs to implement and maintain
sustainably the application of intranet, CRM, HR system,
accounting software and office 365 which can improve the
operations and processes of the college considering that the
results showed the neutrality of their response. The
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utilization of these systems and programs provides the
college with a good database management that proves to
impacts positively on organizational performance.
4. Budget allocation and top management support are highly
needed in order to attain its objective on revolutionizing
advance technology in the college. Since this decision
requires large outlay, the IT department should have a
convincing and workable plans for the top management to
acquire new technological devices and programs that will
work for longer period and sustainable system in the long-
term operations by the college. Project proposals would be
necessary to serve the purpose of advancing in technology.
5. Seminars and workshops should be conducted regularly or
from time to time on the use of latest technologies and
systems that will be applied to the college. To achieve IT
revolution, the employees should be well-aware whatever
advancement in technologies for their efficiency and
applications. This also should cater not only to the non-
academic staff and to academic staff where transfer of
learning can be best shared by the teachers especially in the
IT department.
6. Top priority on IT use should be done on maintaining good
database management system to organize and use in long-
term the data or information may it be on registration
records, financial records, maintenance records and others
for an easy, convenient, fast, reliable and well-informed
business decisions or decision making processes of the
college. This means that, keeping databases and systems
will improve the current operations in the college. Database
can be internally or externally sourced based on what is
preferable and convenient for the college to utilize or
depending on their needs.
7. The IT department should initiate a proposal and
requisition on the purchase of new systems and software
and develop a timeline for its implementation to elevate the
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present operational system utilized by the college.
Notwithstanding, IT equipment can also be requisitioned to
replace the old equipment for upgrading.
8. And, coordination with other departments would be
necessary in order to upgrade the use of IT and apply
college-wide the upgrades of IT utilization for better
organizational performance outcomes. Among others, the
college should utilize the IT to academic and non-academic
related processes such as facility management systems,
course timelines, sales applications and others, online
registration system, and others.
5.4. Direction for Further Studies
This study is limited to the academic and non-academic staff in
the chosen college, ICEM. Moreover, the scope of the study is
also limited to 60 samples that represents the total population
of the staff in the college being one of the colleges operating
under the direct supervision of the Ministry of Higher
Education. Considering that in the results, the use of IT in the
college may not be fully utilized and still a concern for the
college, a comparative study can be conducted in order to
evaluate at what extent the level of utilization of IT in the
college in comparison to the other colleges and universities
operating throughout the Sultanate and to assess what are the
areas that needed to be improved. Also, because the sample is
relatively small, a similar study can be conducted to determine
the results in wider respondents and interpret the results to
contribute to the body of knowledge. Lastly, the result of the
study can be followed up by qualitative study in order to further
validate the interpretations made based on the quantitative
results.
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