Title: Analysing impact of IT investments on banks' performance using multi-stage DEA

Authors: Ankit Mehrotra; Reeti Agarwal

Addresses: Faculty of Information Technology, Jaipuria Institute of Management, Lucknow, India ' Faculty of Marketing, Jaipuria Institute of Management, Lucknow, India

Abstract: The paper studies the impact of investments made in information technology (IT) on firm performance. The paper makes use of multi-stage data envelopment analysis (DEA) to find out the marginal impact of IT investment on firm performance. The paper uses a three-stage DEA approach by introducing a new variable, i.e., communication expenses to study what bearing IT has on firm efficiency attainment. The paper also extends existing literature related to the indirect influence of IT on firm performance by making use of a non-parametric approach, DEA. To attain the aims of the study, data from a number of banks was considered for a period of five years. The study introduced IT variables at two stages of the analysis to analyse its marginal effect on efficiency outcome.

Keywords: data envelopment analysis; DEA; performance; efficiency; information technology; bank; marginal effect.

DOI: 10.1504/IJIDS.2023.131537

International Journal of Information and Decision Sciences, 2023 Vol.15 No.2, pp.201 - 220

Received: 20 Jul 2020
Accepted: 14 Mar 2021
Published online: 19 Jun 2023 *

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