Information Technology, Productivity and Profitability in Asia-Pacific Banks

Abstract

Past analyses of the relationship between IT, productivity and bank profitability in the U.S., Europe and Australia have shown both positive and negative linkages. This study considers the IT impact on productivity in two groups of Asia-Pacific banks based on reported profitability during the Asian financial crisis. In general, the banks perceive increased productivity, and both strategic and operational benefits from IT. The high costs of IT permit only suboptimal investments, in both IT capital and IT labor. Better management of IT resources enhances competitiveness through higher quality service at lower costs, delivered faster through a variety of channels more convenient to customers. IT investments and their proper implementation are more relevant when the banks are not performing well. Since increased productivity may not be adequately reflected in profits, profitability measures should not be used alone to measure the impact of IT on productivity.

Keywords::

• Information Technology (IT)
• Productivity
• Profitability
• Commercial Banks
• Asia-Pacific

Additional information

Notes on contributors

Fredri William Swiercze

Fredric William Swierczek is an Associate Professor at the School of Management, Asian Institute of Technology (AIT), Thailand. He is a past winner of the Douglas McGregor Prize for Excellence in Behavioral Science, John F. Kennedy Scholar and Fulbright Professor. He has extensive research and consultancy experience in Asia in the area of cross-cultural management. He is the author of over 60 publications including book chapters and in journals such as: International Journal of Technology Management, International Journal of Project Management, European Journal of Management, and Technovation. He holds a Ph.D. (Policy & Management) and M.Econ. & Soc. Dev., from the University of Pittsburgh, USA.

Pritam K. Shrestha

Pritam K. Shrestha is a Program Specialist in the networking project of the Asian Development Bank and the Asian Institute of Technology, Thailand. Until recently he was working as a research consultant in the German Technical Cooperation (GTZ) Project at AIT. His research interests are in the use of information technology and its impact on the productivity and performance of financial institutions. He holds a B. Tech. in electronics engineering from IT-BHU, India, and an MBA and Ph.D. in technology management from the School of Management, AIT.

Clemens Bechter

Clemens Bechter has been an Associate Professor in the School of Management, Asian Institute of Technology, Thailand, specializing in e-commerce, m-commerce, e- marketplaces and e-business infrastructure. He recently joined Universitas 21 Global, a Singapore based online university, as adjunct faculty. He has been an organizer and speaker at many workshops and seminars throughout Asia. He received a Ph.D. from the University of St.Gallen, Switzerland for his dissertation on computer-aided product controlling through the use of object-oriented programming.