The Impact of IT infrastructure on business performance in trade and services enterprises

Abstract

This study attempts to present current utilization of IT infrastructure in the Trade and Services sector enterprises to achieve business objectives and to observe the relationship between IT infrastructure and business performance with the same services sector. After a comprehensive review of relevant literature to find definitions and the characteristics of IT infrastructure available, a sample comprising fifty one-companies was selected in a way to cover four major service sector categories representing Wholesale, retail trade and hotels, Transport and communication, Financial and business services and Education, health, cultural and recreational services. Data from these organizations was collected on the basis of a questionnaire developed for the purpose. Data collected for each of the research constructs was then statistically analyzed through linear regression and Pearson correlation techniques. The findings strongly indicate a significant impact of IT infrastructure practices in the business performances of these organizations. This outcome confirms the results of earlier findings related to work on IT infrastructure. In instances where the service sector organizations heavily utilize IT infrastructure related practices, such as IT component related practices, Shared IT services related practices, and IT personnel related practices and Shared IT application related practices, it was found that these organizations are able to achieve higher business performance. It was also observed that above listed sector categories have shown different levels of IT infrastructure practices. The financial services sector and communicational services sector organizations are currently adopting their IT infrastructure practices significantly whereas the Wholesale, retail and hotels sector and Educational, health and recreational services sector are currently utilizing practices at a level below. Hence, a utilization model could be developed to represent the level of IT deployment services sectorially. Keywords—IT Infrastructure, Business Performance, Practices, IT Utilization