Information Technology Spillover and Organizational Performance

Abstract

IT is considered as a prominent cause for an organization’s success. IT assists in collecting, processing and disseminating data and information that helps in decision-making and ultimately in increasing performance. Presenting and justifying the effectiveness of technology in generating performance is a critical task. In the 21st century competitiveness is considered as the outcome of effective use of information technology. As in other countries, Information Technology is substantially used by the organizations in Nepal but assessment of effectiveness of IT and its impact on organizational performance is very few. Thus, this study is conducted to determine the level of use of information technology and its relationship with organizational performance. To achieve the objectives of the study, a descriptive and correlational design was used. Primary data was collected through a questionnaire administered electronically. The population for this study comprised of employees working on different business sectors and 120 employees were selected as sample.Mean and percentage were used to assess level of use of IT in the different sectors of business in Nepal. Correlation matrix was developed using Pearson correlation for the assessment of relationship between IT and organizational performance. The study findings revealed that there was a positive relationship between the IT use and organizational performance. Similarly the use of IT helps to achieve the target, make more accountable to the authorities and improve service quality. Government of Nepal promulgated and implemented IT policy. IT policy prioritized to the use of IT in the rural and urban areas and small to large organizations as well. But the use of IT is not as expected and business sector is also reluctant to use it because of its cost. Government of Nepal formed committees to make effective use of IT but use of IT and its effectiveness seems low. Thus, this study helps revive the IT policy to the government and develop programs for the effective use of IT in business sector.