Information Technology Investment in Banks: Does the Size Proxy Matter?

• 발행기관: People & Global Business Association
• 저자명: Mohammad Mahmoud Humeedat
• 간행물 정보: 『Global Business and Finance Review』Vol.30 No.7, 56~64쪽, 전체 9쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2025.07.31

국문 초록

Purpose: Financial institutions rely substantially on information technology (IT) to improve their financial and operational performance. Investing in IT is a strategic and important decision in the banking sector, which includes a clear disparity between them in terms of size. Therefore, bank size, in terms of financial and non-financial proxies, and IT investment were examined in this study, with operational efficiency as a mediating variable. Design/methodology/approach: Data for 12 Jordanian commercial banks were collected during a 14-year period, from 2010 to 2023. The analysis consisted of descriptive statistics, correlation analysis, path analysis, and multiple regression. Findings: The findings reveal that bank size measured by non-financial proxies (measured by number of branches) has a positive effect on IT investment, and this relationship is strengthened when operational efficiency (measured by net interest margin) is utilized as a mediating variable. On the other hand, the study found no relationship between IT investment and bank size as determined by financial proxies (bank total assets). Research limitations/implications: The majority of previous work in this field has focused on utilizing financial proxies to determine bank size. This is regarded as one of the most significant limitations. Further research ought to examine additional non-financial variables that have contributed to enhancing IT investment. Originality/value: This study contributes to the banking sector in Jordan by highlighting the important role of non-financial measures of bank size to indicate the level of progress and success within the bank, including investment in IT.

목차

I. Introduction

II. Literature Review

III. Research Methodology

IV. Results

V. Discussion

VI. Conclusion

References

키워드

Information Technology Investment Bank Size Operational Efficiency Interest Margin Jordan