Analysis of ICT Cost Efficiency and Corporate Performance: A Case Study of Business Units of Univers
Authors:
BINUYO Adekunle
Publication Type: Journal article
Journal:
ISSN Number:
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Abstract
Information and Communications Technology (ICT) is the fastest growing technology in the
world today. The role of ICT in both the public and private sectors of the world economy has
been widely discussed in the literature. The capital investment on ICTprojects in both the public
and private sectors of the world economy has been on the increase in the last ten years.
However, most studies in this regard has been focused so extensively on assessment of influence
of ICT on performance of manufacturing firms while a good number also focused on impact of
ICT on performance of the service industry sub-sector. Very little attention has been devoted to
the ICT cost efficiency and corporate performance with specific reference to business units of
Universities in South West Nigeria. Hence, this study was undertaken to address this gap.
Secondary data was used for this study. The entire population of Universities in South Western
Nigeria comprising of seven Federal, ten state and twenty private Universities were sampled for
the study. The secondary data were derived from the annual reports of each of the Universities
covered by the study. The variables of interest from the secondary data were: ICT Investment
(ICT Inv.), Return on Capital employed (ROCE), Net Profit Margin (NPM), and ICT Cost
Efficiency (ICTCE). Multiple Regression analysis employing the use of model estimation
revealed that ICT cost efficiency is weak for the three types of Universities covered with State
Universities being the worst. This result indicated that ICT has not been optimally utilized by the
Universities studied. The study recommends that, concerned Universities should endeavour to
match their strategy with their structure to ensure optimal ICT cost efficiency.