Information Technology And The Performance Of Financial Companies In South Korea

Abstract

An underlying premise of investments in information technology (IT) for internal business processes is that these investments add value to the enterprise. This study examines the relationship between the effectiveness of IT and financial growth of publicly traded financial companies in South Korea. IT effectiveness is measured through a survey administered to middle managers that focused on user satisfaction, support for internal business processes, and system reliability. The study provides insight into the degree of effectiveness of IT employed in Korean banks as perceived by bank managers, and also demonstrates the link between IT effectiveness and economic performance. Univariate analysis of the data shows a statistically significant association between IT effectiveness and financial growth. The paper offers limited insight into the thesis that enterprises with high business information intensity will show a positive association between effective IT and economic performance.