The Role of Information Technology in Customers’ Service Delivery and Firm Performance: Evidence from Nigeria’s Insurance Industry

Abstract

Information technology is crucial for a communication based process. Therefore, this study presents aninvestigation of the significant role of information technology in customer service delivery and firm performancein selected insurance companies in Nigeria. Specifically, three hypotheses were tested. They are to determinewhether: (i) customers are not aware of the availability of IT facilities in their dealings with the Nigerian insurancecompanies; (ii) the use of IT does not enhance the performance efficiency of insurance organizations in Nigeria;and (iii) providing quality customer service delivery will not enhance organizational performance of insurancecompanies. The survey research design for the study was a cross examination. The study sample consisted of 112participants made up of IT managers, marketing managers, and underwriting managers drawn from 25 insurancecompanies which were randomly selected from the directory of member companies. One-sample T-test and simplefrequency percentage tables were used for data analysis. The study revealed that most customers hardly use onlineservices in their engagement with the Nigerian insurance companies even with the level of awareness createdwhich depicts a low level business relationship. Thus, many of the insurance organizations indicated that theyexperienced high performance efficiency in their investment in and adoption of information technology. This studyrecommends that insurance administrators and regulators at all levels should gather relevant information as regardsfactors that may assist in contributing meaningfully to the usefulness of IT in effective service delivery. Theyshould also undertake optimal investment in IT, provide quality service delivery to customers and regularlyevaluate IT usage in every department of insurance organizations in Nigeria in order to take appropriate strategicdecisions capable of enhancing firm performance.