Information Technology Investments and Organizational Performance of the Telecommunications Industry in Ghana

The main objective of this study was to find whether IT investments had any positive effects on organizational performance of Telecoms companies. Another objective was also to come out with a model to explain the dynamics of IT investments covering from the factors that necessitates IT investments to the performance of these investments. The focus was from 2000 to 2006. Mobile subscriber base in Ghana grew from 215928 to 4966797, or by approximately 2300.21% from 2001 to 2006 (calculated from data taken from Ghana’s National Communications Authority website www.nca.org.gh). This represents huge IT investments made over the years. As to whether this investment resulted in the performance of these companies or not is what this study tried to unravel. A diagrammatical model was developed as mentioned earlier. At the firm level the results were consistent with the work of Alpar and Kim (1990) who also did not find positive effects of IT investments on performance. Like Strassmann (1985), this study also found no correlation between IT and Return on Investment (ROI) at the firm level. At the industry level however, there were positive effects. This piece of work is purposely meant for all managers, IT professionals, and engineers who take decisions in organizations, government institutions, as well as educational institutions pertaining to Information Technology investments. It will help them make informed decisions, and also to maximize the performance of IT investments once they are made.