MODERN TECHNOLOGY AND THE PERFORMANCE OF FINANCIAL SERVICE

SECTORS

The Case of National Bank of Commerce (NBC) Limited

Michael Israel Laisser

MBA (Corporate Management) Dissertation

1

Mzumbe University

September 2011

MODERN TECHNOLOGY AND THE PERFORMANCE OF FINANCIAL

The Case of National Bank of Commerce (NBC) Limited

By

Michael Israel Laisser

A Dissertation submitted in (Partial) fulfillment of the

Requirements of the Degree of a Master of Business

Administration (Corporate Management) of the Mzumbe

University.

2

Mzumbe University

September, 2011

`CERTIFICATION

The undersigned certifies that I have read and hereby

recommends for acceptance by the Mzumbe University

(Dar es salaam Business School), a dissertation

titled: The Impact of Modern Technology to the

Performance of Financial Services Sector; The Case of

NBC Limited in partial fulfillment of the

requirements for the degree of Masters of Business

Administration (Corporate Management).

3

……………………………………………………

Mr.Maige Mwakasege Mwasimba

(Supervisor)

Date…………………..

DECLARATION

AND

COPYRIGHT

I, Michael Israel Laisser do hereby declare that this

thesis is my own original work and it has not been

and will not be presented to any other university for

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a similar or any other degree award.

Signature

----------------------------

This thesis is copyright material protected under the

Berne Convention, the Copyright Act 1999 and other

international and national enactments, in that

behalf. on intellectual property it may not be

reproduced by any means, in full or in part, except

for short extracts in fair dealings, for research or

private study, critical scholarly review or discourse

with an acknowledgement, without the written

permission of the School of Graduate Studies on

behalf of both the author and the Mzumbe

university(Dar es salaam business school)

5

ACKNOWLEDGEMENT

In the setting and conduct of the study, which led to

this research paper and in the course of writing the

final paper, It wouldn’t have been possible if not

for God to whom I can do everything. I also got

assistance and support from different people.

I would like to express my special thanks to Mr

Mwasimba who supervised me throughout my dissertation

process. His criticism, advice and encouragement

helped me to accomplish this study. His kindness,

consultancy and general guidance also played an

important part from first to the final report. I

would like also to express my sincere appreciation to

my family and my friend Zabibu who has given me

support and encouragement to complete my paper.

I would like also to thank those who have helped me

in one way or another in conducting my research and

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writing the final report

Furthermore, many thanks to my family, relatives,

colleagues at NBC, colleagues in the MBA program and

all other participants for their encouragement and

support.

DEDICATION

This work is dedicated to all business stakeholders

who are always struggling for improved business

performance through technologically sound approach,

to my lovely family who have always been my strength.

7

TABLE OF CONTENT

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study…………………………………………………

1.2 Research Problem………………………………………………………

1.3 Research Objectives………………………………………………………

1.4 Research question…………………………………………………………

1

2

3

4

4

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1.5 Significance of the study…………………………………………………

1.6 Scope of the study ………………………………………………………

1.7 Limitation of the study…………………………………………………

5

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CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction…………………………………………………………….

2.2 Theoretical Literature Review………………………………………….

2.2.1 Definition of Key Concept……………………………………………..

2.2.2 Basic Motivation Theories……………………………………………..

2.3 Empirical Literature Review……………………………………………

2.3.1 ICT and its Specific Competitive

Factors……………………………..

2.3.2 The Management Information Systems and ICT

Context………………

2.3.3 Globalization Context and the Modern ICT

……………………………

2.3.4 ICT and Organizations’ Cultural

Perspectives………………………….

2.3.5 The Modern ICT and Organization Performance

Context……………..

2.3.6 The Concept of ICT Change Strategies…………………………………

2.3.7 Conceptual Framework…………………………………………………

2.3.8 The Rationale for Selecting an Organization’s

Performance Improvement Model…………………………………………………..

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CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction…………………………………………………………….

17

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3.2 Research Paradigm………………………………………………………

3.2.1 Positivism Paradigm………………………………………………………

3.3 Research Design…………………………………………………………

3.3.1 Research Approach………………………………………………………

3.4 Area of Study……………………………………………………………

3.5 Sampling Procedure………………………………………………………

3.6 Study Population……………………………………………………….

3.7 The Sampling Frame……………………………………………………

3.8 Sampling Procedure………………………………………………………

3.9 Sample Size…………………………………………………………….

3.10 Research Variables………………………………………………………

3.11 Data Collection Techniques………………………………………………

3.12 Data Analysis……………………………………………………………..

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22CHAPTER FOUR: PRESENTATION OF RESEARCH DATA

4.1 Introduction………………………………………………………………

4.2 Characteristics of the respondents………………………………………

4.2.1 Gender of respondents………………………………………………….

4.2.2 Education of the respondents……………………………………………

4.2.3 Age profile of the respondents………………….…………………...……

4.3 Findings of the research questions………..

………………………………

4.3.1 The assessment of the relationship between

adoption of modern ICT and organization

performance…………………………………………

4.3.1.1 Customer orientation vs.

performance………………………………….

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4.3.1.2 Impact of technology on revenue

growth………………………………

4.3.1.3 Assessment of how modern technology can help

to control queue……

4.3.1.4 Assessment of the improvement of work process

though adoption of modern

technology………………………………………………………

4.3.1.5 Assessment of the relationship between the

working hours and the adoptions of modern

technology…………………………………………

4.3.2 Strategies for Optimum Utilization of the Modern

ICT…………………

4.3.2.1 Assessment of how ATMs ensure optimum

utilization of modern

technology........................................

..................................................

.........

4.3.2.2 Assessment of how research and development

ensure optimum utilization of modern

technology…………………………………………

4.3.2.3 Assessment on how corporate downsizing can

enhance optimum utilization of modern

technology…………………………………………

4.3.2.4 The assessment of how employee training and

development ensures optimum utilization of modern

technology……………...……………..

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4.3.2.5 Assessment of how customer training enhances

optimum utilization of modern technology…………………….

………………………………….

4.3.2.6 The usefulness of computers uses in enhancing

utilization of modern

ICT...............................................

..................................................

........

4.3.2.7 Assessment of the relation between

qualification of employee and adoption of modern

ICT………………………………………….……...

4.3.3 Challenges in Implementing the Modern ICT

Concept…………………..

4.3.3.1 How political factor can be a challenge in

implanting modern ICT………

4.3.3.2 Technological dynamics as a challenge in

implementing modern

technology………………………………………………………………

4.3.3.3 Social cultural factor as a challenge in

implementing modern

technology………………………………………………………………

4.3.3.4 Legal factor as a challenge in implementation

of modern ICT...................

4.3.3.5 Competition as a challenge in implanting

modern ICT…………………

4.3.3.6 Human resource diversity as challenge when

44

12

implementing modern ICT……………………CHAPTER FIVE:DISCUSSION OF THE FINDINGS

5.1 Discussion of research findings on Impact of

modern technology to

the performance of financial service

sector …………………………

5.1.1 Discussion of research findings on Impact of

technology on revenue growth…………………

5.1.2 Discussion of research findings on how modern

technology can help to control queue…

5.1.3 Discussion of research findings on Strategies for

Optimum Utilization of the Modern ICT……………

5.1.4 Discussion of research findings on Challenges in

Implementing the Modern ICT Concept…………………..

SUMMARY, CONCLUSION AND RECOMMENDATION

6.1 Introduction………………………………………………………………

6.2 Summary………………………………………………………………

6.3 Conclusion………………………………………………………………

6.4 Recommendations………………………………………………………

6.4.1 Relation between the use of modern technology

and organization

performance………………………………………………………….....

6.4.2 Strategies for optimum utilization of Modern

ICT……………………..

6.4.3 Challenges facing organization management in

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implementing the modern

ICT……………………………………………………………..

6.5 Suggestions for the dissertation in Future Research

……………………..

References………………………………………………………………………..

LIST OF TABLESTable 3.1: Criteria for Selection of Research

Paradigms and Research

Methods……………………………………………………

Table: 3.2: Research Sample Selection

Criteria…………………………

Table 3.3: Research Variable Names and

Classifications………………

Table 4.1: Gender of

Respondents…………………………………….

Table 4.2: Education level of

respondents………………………………

Table 4.3: Age profile of

respondents…………………………………

Table 4.4: Customers Orientation………………………………………

Table 4.5: Revenue growth…………………………………………….

Table 4.6: Controlled queue……………………………………………..

Table 4.7: Work process………………………………………………..

Table 4.8: Working hours………………………………………………

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Table 4.9: Automated Teller Machines

uses…………………………..

Table 4.10: Research and Development

concept……………………….

Table 4.11: Corporate downsizing……………………………………….

Table 4.12: Employees Training and

development……………………..

Table 4.13: Customers’ training…………………………………………

Table 4.14: Computer uses ………………………………………………

Table 4.15: Qualifications of

employees………………………………..

Table 4.16: Political Factor………………………………………………

Table 4.17: Technological

dynamics…………………………………….

Table 4.18: Social Cultural

Factors……………………………………..

Table 4.19: Legal Factors………………………………………………..

Table 4.20: Competition…………………………………………………

Table 4.21: Human resources

diversity………………………………….

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LIST OF FIGURES

15

Figure: 2. 1; An Organization’s Performance

Improvement model…………

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LIST OF ABREVIATIONS

ATMs - Automated Teller Machines

Co - Company

FSSP - Financial Services Sector’s Performance

HRs - Human Resources

ICT - Information Communication and Technology

Ltd - Limited

MBA - Masters of Business Administration

NBC - National Bank of Commerce

PPP - Public Private Partnership

MU - Mzumbe University

URT - United Republic of Tanzania

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17

ABSTRACT

This study was conducted at the NBC Limited in Dar es

salaam, Tanzania. The general objective was to investigate

the impact of a modern technology to the performance of

financial services sector. Specifically it aimed at

determining the relationships between the adoption of modern

ICT and organization’s performance,the second objective was

to study the current strategic roles of organization’s

managements that are used to enhance an optimum utilization

of the modern ICT.Last the study aimed at exploring the

challenges facing Organization’s management in implementing

the modern ICT concept.

The study was mainly descriptive and cross – sectional. It

was conducted using a case study technique by collecting

primary data at the NBC Dar es Salaam using questionnaires.

It involved a sample of 40 respondents The findings found

that there exists a relationship between the adoption of

modern technology and the performance of the organizations.

The study also indicated the strategies used by the

organization to ensure optimum utilization of technology

through introducing online banking services and the use of

ATMs.Not only had that but the findings also indicated the

challenges faced by Organizations’ when implementing ICT.

The researcher recommends that the adoption of a modern

technology by work organizations have a significant role in

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influencing the organizations’ performance, thus the

managements of organizations should maintain a state of

innovation in order to attain a competitive scope in

adopting and implementing modern technology for the benefit

of the organization and other stakeholders. It is also

recommended that Organizations should stress on the

strategies that enhance optimum utilization of ICT and

increase the motives for the utilization of the same.Last

the researcher recommends that organization should find ways

to tackle the challenges they face when implementing modern

technology.

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CHAPTER ONE

AN OVERVIEW OF THE STUDY

1.1INTRODUCTION:

This chapter provides detailed information related to the

introduction of the study. It covers such variables as

background of the study, research problem and research

question. Other aspects included research objectives,

research variables, limitation of the study as well as

significance of the study.

1.2 Background to the Study

The introduction of computing and specifically Information

and Communications Technologies (ICTs) into the workplace

is one of the most significant and dramatic changes in the

realm of office work to be witnessed in recent years

(Wiese, 2001). Today’s business environment is very

dynamic and undergoes rapid changes as a result of

technological innovation, increased awareness and demands

from customers. Business organisations, especially the

banking industry of the 21st century operates in a complex

and competitive environment characterized by these

changing conditions and highly unpredictable economic

climate. The business impacts of information technology

(IT), deregulation and globalisation on the structure and

profitability of the international banking industry is

20

being observed. Information technology creates new

opportunities for the banks in the way they organize

product development, delivery and marketing.

However IT also allows other financial and even non-

financial organisations to start offering bank services.

Information and Communication Technology (ICT) is at the

centre of this global change curve. Laudon and Laudon,

(1991) contend that managers cannot ignore Information

Systems because they play a critical role in contemporary

organisations. They point out that the entire cash flow of

most fortune500 companies is linked to Information System.

The usage of information technology (IT), broadly

referring to computers and peripheral equipment, has seen

tremendous growth in service industries in the recent

past. The most obvious example is perhaps the banking

industry, where through the introduction of IT related

products in internet banking, electronic payments,

security investments, information exchanges (Berger,

2003), banks now can provide more diverse services to

customers with less manpower.

The application of information and communication

technology concepts, techniques, policies and

implementation strategies to banking services has become a

subject of fundamental importance and concerns to all

banks and indeed a prerequisite for local and global

competitiveness. ICT directly affects how managers decide,

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how they plan and what products and services are offered

in the banking industry. It has continued to change the

way banks and their corporate relationships are organized

worldwide and the variety of innovative devices available

to enhance the speed and quality of service delivery.

Harold and Jeff (1995) contend that financial service

providers should modify their traditional operating

practices to remain viable in the 1990s and the decades

that follow.

The adoption of ICT in banks has improved customer

services, facilitated accurate records, provides for Home

and Office Banking services, ensures convenient business

hour, prompt and fair attention, and enhances faster

services. The adoption of ICT improves the banks’ image

and leads to a wider, faster and more efficient market. It

has also made work easier and more interesting, improves

the competitive edge of banks, improves relationship with

customers and assists in solving basic operational and

planning problems. (DeYoung, Robert 2007) In general,

existing studies have concluded positive effects regarding

the relation between ICT and banks’ performance. First,

ICT can reduce banks’ operational costs (the cost

advantage). For example, internet helps banks to conduct

standardized, low value-added transactions (e.g. bill

payments, balance inquiries, account transfer) through

the online channel, while focusing their resources into

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specialized, high-value added transactions (e.g. small

business lending, personal trust services, investment

banking) through branches. Furthermore, ICT can facilitate

transactions among customers within the same network (the

network e ect) (see Farrell and Saloner, 1998; Katz andff

Shapiro, 1995; Economides and Salop, 1992). Example the

case of automated teller machines (ATMs) by banks. If

ATMs are largely available over geographically dispersed

areas, the benefit from using an ATM will increase since

customers will be able to access their bank accounts from

any geographic location they want (Milne 2006). This

would imply that the value of an ATM network increases

with the number of available ATM locations, and the

value of a bank’s network to a customer will be

determined in part by the final network size of the bank.

Indeed, Saloner and Shepard (1995), using data for

United States commercial banks for the period 1971-1979,

showed that the concern of network e ect is important inff

the ATM adoption of United States commercial banks (see

also Milne, 2006).

It should be mentioned that as the global reach of the

Internet implies that financial services can

increasingly become borderless and global, a pan-European

initiative for could increase customer confidence, as

certainty for customers that all banks are protected in a

similar fashion may increase the customer’s perception of

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security.Support the skills development among bank

personnele-Banking and ICT have caused the traditional

branch-based banks to change the service offerings in

their branches. The business model of dual-combination

banking (banks offering internet-banking and branch-based

banking) is emerging, which implies that customers are

increasingly performing basic banking tasks online while

relying on bank branches only for more sophisticated,

advisory tasks. The dual- banking model can give

traditional branch banks the opportunity to adjust their

branch network towards advisory functions and away from

traditional teller services, thus adding value to

their customers from direct and customised bank advisory

services.This development however means that an increasing

number of jobs are being changed from traditional tellers

to branch advisors/counsellors. Bank staff is increasingly

asked to provide highly qualified financial advice

rather than perform simple teller functions. As both the

econometric analysis and the case studies show, bank staff

is being retrained to perform such tasks. From the

econometric analysis it can be seen that ICT usage in

financial services have a significant skill-bias towards

medium-skilled labour, which

The banking industry in Tanzania has witnessed tremendous

changes linked with the developments in ICT over the

years. The quest for survival, global relevance,

24

maintenance of existing market share and sustainable

development has made exploitation of the many advantages

of ICT through the use of automated devices imperative in

the industry. This study evaluates the response of

Tanzania banks to this new trend and examines the extent

to which they have adopted innovative technologies in

their operations and the resultant effects.

1.3 Statement of Research Problem

The role of ICT in banking industry effective use of ICT

is assisting banks to be more customer-centric in their

operations by building a solid foundation for customer

relationship management, to grow the range of

products/services while mitigating fraud levels and

improving risk management, to widen their customer base,

reduce transaction & operational costs and to gain or

retain competitive advantage

A. Khanna (2003) notes that technology has changed the

contours of the three major functions performed by banks

i.e. easy access to liquidity, transformation of assets

and monitoring of risks

Further, IT and the communication networking systems have

a crucial bearing on the efficiency of money, capital and

foreign exchange markets.

25

What are therefore the developments and implications of

ict on banking in Tanzania? Banks in the country are

increasingly gravitating towards digital technology to

create value for their Customers and in competing for

market shares. Still, banking in the country is beset by

long Queues, energy exacting and time-consuming, and on

the whole costly (Appiah and Agyemang 2005). It defeats

the purpose of customer service to see the hard time that

many customers go through to access banking services

around the end of every month when most salaries are paid

through the banks. This has resulted in the loss in

potential exchanges as many people simple keep money

outside the banking system to avoid the ordeal meted out

to them by the banks (William et al 2005; Appiah and

Agyemang 2005).

Physical cash and paperwork still characterize most of the

payment systems in Tanzania and remain popular in spite of

the introduction of digital payment cards.

The main focus of adopting digital technology by the

banks, as it appears to us from our own experiences as

bank customers, is to network customer accounts

information across branches to create business value

(operational excellence) rather than customer value. In

eliminating time, space and distance constraints,

customizing products and services, effecting payment or

26

cross-selling, the internet stands out as the biggest

digital platform for businesses that leverage the

technology.. Ho and Ko (2008) also identify labour cost

for banks as an incentive to introduce technology-based

self-service offer to customers. Most Tanzanian bank

customers also appear to be more comfortable with over-

the-counter banking services than online banking and give

it little or no attention although utilizing ATMs and

other digital services is a way of life for many bank

customers. Indeed, leveraging a new technological platform

is not a guarantee for success as learned the hard way by

many early dotcoms during the internet boom.

Internet banking can boost growth and profits for a bank

but it necessitates considerable resources for both banks

(Williamson 2006, Bauer et al. 2004) and bank customers in

Tanzania. Therefore banks offering online banking need to

continually evaluate the value they offer to their

customers by taking into account customers’ value

perceptions in order to be reactive or proactive (Kotler

and Keller 2006) and to identify factors that affect those

value perceptions to achieve a customer-centric management

strategy. “Customer Value needs to be seen from the

customer’s viewpoint in terms of the value s/he sees in

interacting with the organization” (Customer Value

Foundation 2007).

27

1.4 Research question

1.4.1 General Research question

What is the impact of modern ICT development to the

financial service sector performance (FSSP)?

The researcher answered the following research questions:

(i) What were the relationships between the adoption

of modern ICT concepts and organization’s performance?

(ii) What were the current strategic roles of

organization’s managements that are used to enhance an

optimum utilization of the modern ICT?

(iii) What were the challenges facing Organization’s

management in implementing the modern ICT concept?

1.5 Research Objectives

1.5.1 General Research objective.

The impact of modern ICT development and management to the

FSSP in the URT.

1.5.2. Specific Research objective.

(i) Determined the relationships between the adoption

of modern ICT concepts and organization’s performance

specifically on FSSP.

(ii) Determined the current strategic roles of

organization’s managements that are used to enhance an

optimum utilization of the modern ICT.

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(iii) Determined the challenges facing Organization’s

management in implementing the modern ICT concept

1.6 Significance of the study

The study was geared toward contributing the following to

the stakeholders at large; It contributed views to general

stakeholders on the impact of modern ICT development and

management to the FSSP and facilitate work organizations in

attaining their performance objectives.

It provided proper means of delivering a result oriented ICT

functions through formulating and re-designing ICT strategy

implementation that can best enhance an operational

efficiency. It also contributed to the existing body of

knowledge and act as reference for other researchers who

will be interested to researching in this area.

1.7 Scope of the study

Geographically the study was conducted in Dar es Salaam in

the URT. Specifically it was conducted at the NBC branches

in Dar es Salaam city.

1.8 Limitation of the study

Based on the prevailing scarcity of research resources

namely; time, financial and human resources, the researcher

conducted the study as a case study at the NBC.

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1.8 Limitation and scope of the study

However, this study faced many problems and the study

involve the use of sample, generalization will be

made, while the study restrict itself in a case

study approach and thus, it may be difficult to

secure reliable data. Other factors, which are

anticipated to limit the study, include:-

1.8.1 Time constraint

This study has been carried out for a short period of

time because it is the obligation to do so as to

follow the deadline of the academic calendar. Time

constraint affected both, the quality and quantity of

the research study because the researcher had to use

fewer respondents and only one Financial Institution

as a case study which is National Bank of Commerce.

1.8.2 Financial constraint

Lack of adequate finance affects the quality and

quantity of data to be collected during the study.

This hindered the researcher to conduct the study

effectively because the researcher was not able to

interview as many respondents as possible. Not only

that but also funds is not enough to facilitate the

30

conducive environment for the entire study as the

cost of living, transport fare and medical expenses

are very much high.

1.8.3 being new to the respondents.

Some of the respondents create artificial behavior

and become resistant in giving out information on

their free will. In this circumstance it is better

to try the best to get accustomed to the respondents

and narrate clearly the objectives of the study.

1.8.4 Lack of sufficient data.

The researcher faces the problem of data collection

during the fieldwork; this is due to confidentiality

of some documents as well as some respondent’s lack

of co-operation with the researcher during the actual

research. Some documents are not also available in

the area of the study.

1.8.5 Sample size selected

Since the research conducted in Dar es Salaam and at

the offices of NBC Bank the sample size selected

involved only 50 respondents, this may not give a

true representation of the real situation of the

research topic. Thus, a small sample size affects the

reliability of the data to be collected.

31

1.9 Delimitation of the studyThe study faced with many problems such as lack of

sufficient data, fund shortage, time limit, being new

to the respondent, which hinder the accuracy of my

research. But I tried to solve this problem by reduce

the less important expenses so that I can meet with

available amount and complete the research report.

1.9.1 Time constraint

Following the time management, the study carried out

for a short period of time because it is the

obligation to do so as to follow the deadline of the

academic calendar the researcher have to use fewer

respondents and only one Financial Institution as a

case study which is National Microfinance Bank in

order to save the time allocated.

1.9.2 Lack of fund

Due to lack of fund, the researcher tried to solve

this problem by reduce the less important expenses so

that she/he can meet with available amount that can

complete the research report and collect accurate

data for low cost which will not affect the quality

and quantity of the research.

32

1.9.3 Lack of sufficient data.

In case of lack of sufficient data the researcher

tried to target respondents of which will give the

accurate data for the research and try to explain

to the respondent how to fill the questionnaire and

what data expected to get from them according to the

requirement which are in questionnaire.

1.9.4 Sample size selected

Accessibility of some respondents in the sample is

expected to be difficult since these are busy

executive officer. The researcher counter this

limitation by using other data collection approach

such as telephone interview and questionnaires, and

provide for estimated response rate.

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CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This part provides a thorough review of related literature

so as to establish the relationship between variables in the

selected area of study. It established the relationships

that exist between the modern ICT and organizations’

performance. The researcher will present the theoretical as

well as empirical related literature review ad hereunder.

2.1 Theoretical Literature Review

Under the theoretical related literature review the

researcher covers the definition of key terms

2.1.1 Definition of Key Concepts

Information Communication and Technology was defined as the

ways people use resources to meet their wands and needs. For

example people have inverted refrigerators to meet their

need for storing foods (Brian et al (1999), James, (1998)

and Turban et al, 1996).

Human resources management is a set of policies practices

and progress of managing people in organization and

essentially a process of binding people and organization

together (Ngirwa, 2005).

Organization’s Manager is a person responsible for managing

and overseeing the human resources in different department

within a company, organization or agency. This include

posting, advertisement or approving advertisement for new

34

employees, screening, resumes and application, setting

interview appointments and being involved in the hiring

process (Prasad, 2006)

Motivation is the activation or exercitation of goal-

oriented behavior. Motivation is said to be intrinsic or

extrinsic. The term is generally used for humans but,

theoretically, it can also be used to describe the causes

for animal behavior as well. Motivation may be rooted in the

basic need to minimize physical pain and maximize pleasure,

or it may include specific needs such as eating and resting,

or a desired object, hobby, goal, state of being, ideal, or

it may be attributed to less-apparent reasons such as

altruism, selfishness, morality, or avoiding mortality

(Robbins, 2004).

Motivation theories are defined as theories that attempt to

explain the nature of motivation. It explains the behavior

of certain people at certain time (Ngirwa, 2005 and Mullins,

2007).

Employees is defined as any person who has entered into or

works under a contract of services with an employer whether

by way of manual labor, clerical work or other, whether

contract is expressed or implied or is oral or in writing

(Mullins, 2007).

Performance is defined as the achievement of quantified

objectives. It is however not only the matter of what people

achieves but how they achieve it. Performance is both

35

behavior and results (Ruzibuka et al, 1996 and Robbins

2004).

Organization is defined as the ways work is organized and

managed. This includes the following elements: job design,

careers concerns, management style, scheduling and

interpersonal issues (Ruzibuka et al, 1996)

Job is defined as a group of position involving same duties,

responsibilities, knowledge and skills. Each job has

definite title and is different from other jobs. For example

typist, mail clerk, salesman, are jobs (Prasad, 2006)

2.2.2 Basic Organisational Financial Institution Performance

Theories

These are presented as hereunder:

2.2.2.1 Need Theory.

According to Robbins (2005) there are four theories that

focus on human needs that are reflected in the

organizations’ mission. These include Maslow’s Hierarchy of

needs, Two Factors Theory, ERG and McClelland‘s Needs

theory. The strongest of these is the McClelland’s Needs

theory particularly regarding the relationships between

achievements and organizations’ productivity. Furthermore,

the other three have better value in explaining and

predicting satisfaction. Therefore, for the purpose of

creating value of this study the researcher dug deeper on

McClelland’s Needs Theory.

36

37

2.2.2.2 McClelland’s Needs Theory

Achievement, Power and Affiliation are three important needs

that help to explain motivation, for this case motivation

towards modern ICT development and management.

Need for achievement refers to drive to achieve in relation

to the certain set of standards. Some people in

organizations have a strong drive to succeed. They are

striving for personal and organization’s achievement rather

than the reward of achievement per se. They always strive to

attaining a competitive edge by doing their jobs description

and specification better or more efficient than it has been

done before by seeking situations in which they can attain

personal responsibilities for finding solutions to problems

in which they can receive rapid feedback on their

performance and be able to determine easily whether they are

improving or not and in which they can set moderately

challenging goals.

McClelland provided that higher performers (both people and

organizations) dislikes succeeding by chance. They prefer

the challenges of working at problems and accepting the

personal responsibility for success or failure rather than

leaving the outcome to chance or the action of others.

Importantly, they avoid what they perceive to be very

difficult or very easy tasks. They like setting goals that

requires stretching themselves little.

38

On the other hand, needs for power is all about the need to

make others behave in a way that they would not have behaved

otherwise. They have the desire to have impact, to be

influential and to control others. They enjoy being the in

charge and preferring to be placed into competitive and

status oriented situation. They also more concerned with

prestige and gaining influence over others than with

effective performance.

Similarly, need for affiliation is the desire for friendly

and close interpersonal relationships (for this case inters

organization relationships). People under this category of

needs prefer cooperative situation rather than competitive

ones. They desire relationships that involve a high degree

of mutual understanding.

The three components of the motivation theory (need theory)

as propounded by the McClelland’ are also reflected in the

ICT development and management towards attaining the

organization’s predetermined goals. Organizations within

their industry need power, affiliation and achievement in

order to be able to attain a technologically competitive

edge. Success in such context also calls for managers who be

entrepreneur enough to be able to take challenges in

adopting the modern ICT concept that when working in one

system can result in improved performance (Robbins, 2005 and

Laudon et al, 2002).

39

2.2.2.3 Bank theory

Banks, together with other financial intermediaries, are

essential in the allocation of capital in the economy. A

very powerful tool to explain how banks work is provided

by the literature on financial intermediation. This

literature is centred on information

asymmetries, an assumption that “different economic agents

possess different pieces of

Information on relevant economic variables and those

agents will use this information for their own profit”.

The presence of asymmetric information leads to adverse

selection and moral hazard problems. Adverse selection is

an asymmetric information problem that takes place before

the transaction occurs and it is related to the lack of

information about the lenders’ characteristics. Moral

hazard takes place after the transaction occurs. It is

related with incentives by the lenders to behave

opportunistically. The financial intermediation literature

explains that financial intermediaries exist to overcome

the informational asymmetries in markets. Banks, as a

particular type of financial intermediary, perform

different tasks related to these information asymmetries,

among which are the provisions of liquidity through

deposits; and the supply of finance to households and

firms, by the means of loans. Among the different issues

40

analysed by the financial intermediation literature is the

relationship between bank and customers and the monitoring

(including screening) activity that implies that firms and

financial intermediaries develop long-term relationships,

thus mitigating the effects of adverse selection and moral

hazard. Recent developments in ICT, together with new

financial instruments, have lowered informational

asymmetries. In this dissertation we use economic concepts

in the financial intermediation literature to explain the

observed trends in the banking industry.

41

2.2.2.4 ICT and Organizations’ Cultural Perspectives

When organizations become institutionalized, they take on a

life of their own apart from their founder or any of their

stakeholders. They determine their own culture which is a

system of shared meaning held by members that distinguishes

one organization from others. It convey a sense of identity

for organizational members and facilitate the generation of

commitment to something large than one’s individual self –

interest. It also enhance the stability of the social system

by providing appropriate standards for what stakeholders

should say and do and serve as a control mechanism that

guide and shapes the attitude and behavior of stakeholders.

As it guide and shape the attitude and behavior of employees

it calls for strategic roles of organizations’ management to

rely on the same scope and implement their professional

functions focusing on modern ICT development and management

so as to attain their projected performance sustainability

as provided by (Mullins, 2007 and Prasad, 2006)

According to Robbins (2005), researches suggests that there

are seven characteristics that in aggregate captures the

essence of organizations’ culture that may affect the

adoption of the concept of modern ICT development and

management namely; innovation and risk taking, attention to

details, outcome orientation and people orientation. Others

are team orientation, aggressiveness and stability.

42

Innovation and risk taking refers to the degree to which

organizational members are encouraged and to be willing to

be innovative and take risks in developing and managing ICT

functions

Attention to details is the extent to which organizational

members are expected to show precision, analysis and

attention to details.

Outcome orientation is all about the level at which

organizational members are encouraged to be focused on

results or outcomes rather on the techniques and process

used to achieve those outcomes.

People orientation refers to the degree to which

organizational management decisions takes into consideration

the effect of outcomes on people within and outside the

organization.

Team orientation is the extent to which work organizational

activities are organized around teams rather than

individuals.

Aggressiveness is the degree to which organizational members

are aggressive and competitive rather than easygoing.

Stability is the degree to which organizational activities

emphasizes on maintaining the status quo / competitiveness

in contrast to growth using modern ICT.

2.2.2.5 The Concept of ICT Change Strategies

43

As provided by Peter (2005) and Robbins (2005), the multi -

attribute model is a useful guide for devising modern ICT

change strategies. Basically, there are four ICT change

strategies namely adding a new salient belief about the ICT

object, increasing the strength of the existing positive

beliefs, improving the evaluation of the strongly held

beliefs and making an existing favorable belief more

salient.

Adding a new salient belief about the ICT object is probably

the common ICT change strategy. Ideally, it requires adding

a salient belief with a positive image, example, people in

general have positive attitude towards ‘the use of computer

which seem to be linked to such benefits as reduced costs of

operations and simplified work load.

Increasing the strength of the existing positive beliefs

calls for increasing the strength of beliefs about positive

attributes and consequences or they can decrease the

strength of beliefs about the negative attributes and

consequences, example, specialists in ICT works hard to

create strong consumer beliefs that its adoption leads to

organization productivity and apparently many organizations’

managers do believe.

Improving the evaluation of the strongly held beliefs

requires constructing a new mean end chain by linking a more

positive and high ordered consequences to that attribute,

example computer manufacturer such as IBM once tried to

44

enhance customers’ attitude by linking their computer uses

and radioactive rays prevention that leads to assured cancer

prevention. Making an existing favorable belief more salient

usually by convincing the target audience that the

attributes are more self – relevant than it seemed to be. It

attempts to link the attribute to valued consequences.

Through this way, there is increase in both the salience of

customers’ beliefs about the attributes as well as the

evaluation of the beliefs.

Economics of money and banking:

Money and Monetary policy

The definition of money as a means that is generally

accepted in making payment simplies that what constitutes

money depends on the behavior of consumers and firms. New

technology-based payments instruments, if generally

accepted, have the potential to modify what constitutes

money. We are currently moving towards an electronic

payments system. This has the potential to increase

overall efficiency in the economy and also raises new

concerns regarding other essential -besides efficiency-

attributes of payments systems, in particular, their

safety. Both the safety and the efficiency of the payments

systems have become a fundamental concern for policy

makers. Issues that can be examined include changes in the

existing measures of money, the relevance of monetary

45

aggregates in monetary policy making, the potential for e-

money to replace “fiduciary” money, and institutions that

should be allowed to issue e-money. The introduction of

the euro may also have implications on the adoption of new

electronic payments instruments in Europe. ICT

developments have strongly influenced international

capital flows. These developments have prompted a debate

on the role that national and international institutions

should play in the new framework of a globalised economy.

The current international institutional framework has

proved inadequate to deal with the new environment created

by the globalisation of capital flows. Policy options are

required at European and international levels. The volume

and speed of international capital flows and the structure

of international financial system also affect monetary

policy. Exchange rate considerations now play a greater

role in the conduct of monetary policy. Because of the

growing interdependence between economies around the

world, a country’s monetary policy cannot be conducted

without taking international considerations into account.

46

Electronic money. Its characteristics

From Electronic Fund Transfer Systems to Digital cash

From a technical point of view the first system that could

be considered electronic money is the electronic transfer

of funds. This system is used from the late 1960s. It

could also be called electronic checking. It is used by

millions of consumers to pay domestic bills and also by

banks and other institutions when transferring large

amounts of money at the international level. Between the

well-known advantages of Electronic fund transfer we could

mention: saved time, reduced costs for paper handling, no

bounced cheques, flexibility. During the 1990s, and taking

advantage of new information technologies two different

groups of electronic money are being developed and

introduced around the world: prepaid cards and digital

money through Internet. These two kinds of products are

often classified under the generic label of electronic

money or new payment systems. In certain cases they are

labelled as digital cash or electronic cash. By using the

word "cash" one common feature is underlined: the goal is

to be the equivalent of paper cash. Ideally, two main

characteristics of the paper cash should be maintained:

anonymity and liquidity. In the meantime, we are now

seeing the introduction of intermediate products that

coexist with some incipient experiences of pure digital

cash. But, in any case analysts believe that transforming

47

bills into electronics charges on people’s PC electronic

wallet or their intelligent pre-paid card is, without

doubt, a major change since gold became the standard of

payment. Consumers’ viewpoints related to the concepts of

money, cash and value, are probably going to change.

Following Linch and Ludquist (1996): “Digital money is an

electronic replacement for cash. It is storable.

transferrable and unforgeable. Digital money is numbers

that are money”. In general, we can summarise the

advantages and disadvantages of the new electronic payment

systems with respect to the ones currently used as:

Advantages. Increased security, anonymity and preservation

of privacy, reduction of transactions costs, easier

international payments, Consumers have access to much

larger markets (and therefore overall efficiency

improves), better means of control of personal finances by

users directly (instead of financial institutions).

Disadvantages. Everything is fairly new, and therefore

untried. Problems will surely appear and have to be dealt

with. Possibility of losses in case of hardware breakdown.

In general, reliable backup systems have yet to be

developed. Possibility of new criminal activities and

better means to carry out other unlawful ones (tax

evasion, money laundering). About 50m people have access

to the Internet, but this number is expected to reach 200m

within two years2. There are many reasons to vouch for the

48

importance of such a network in the future: the expected

huge markets, the ability to offer 24-hour service across

borders and the potentially enormous savings in

operational costs. Merchants, banks, financial

institutions, credit card companies, and software firms

are, obviously, greatly interested in keeping informed

about the evolution of the Net, and starting to operate in

it.

Pre-paid cards

Smart cards. Technology and purposes

Smart cards consist of a plastic card with an embedded

chip and represent a technological advance in comparison

with cards with magnetic bands. The chip embedded in the

card can hold memory features (as do magnetic bands) and

can as well include a microprocessor. This latter allows

for the use of cards being extended to new applications.

The main use envisaged for smart cards is as a payment

mechanism; with smart cards incorporating electronic cash.

This issue is developed in the next subsection Other

applications for smart cards are covered later in the

report (See section 2.4).The following paragraphs explain

the technological aspects of smart cards systems. The

architecture of a system is the structure of a scheme. The

design of the structure establishes who will be the users

(bank, individuals, and others) and the roles or options

49

available to each user (acquirer, issuer, payee, payer,

and other). It also defines the functional entities (for

instance: purse, till, and reload station) and devices

(for instance: bank terminal and smart card). Finally, it

also establishes the relationships among them The hardware

of smart cards systems is centred on the chips contained

by the card and the several devices related to the card.

Some architectural features of smart cards systems vary

greatly among different schemes. Regarding the types of

microcircuit embedded in the card, four varieties of smart

cards systems can be established: memory cards, shared key

cards, signature-transporting cards and signature creating

cards (See Box .2.1). Schemes currently implemented in

Europe have different levels of technology sophistication.

Among the simplest systems are the single -purpose pre-

paid cards and some multi-purpose cards schemes such as

Dänmont in Denmark. Among the most Sophisticated is

Mondex. The CAFE system is even more sophisticated but its

implementation has been lower. In between, there is a wide

intermediary level range. Although predictions are always

difficult in the technology area there is broad agreement

among experts on the future being based in chip

technology. Predictions also indicate that as chip

technology continues to improve more advanced systems will

become economically feasible and will gradually be

implemented. Considerations on the suitability and

50

consequences of technological innovation for Europe are

drawn latter in the report. Pre-paid smart cards as a new

payment mechanism Pre-paid cards can serve as a payment

mechanism by loading and storing monetary value in the

chip embedded in the card. The value loaded in the card

can later be disbursed when paying for the provision of

goods and services. Pre-paid cards are mainly intended for

some of the usual consumer transactions. When considering

different levels in such transactions, we can establish:

those involving a relative high value (which most

consumers associate with credit cards),

2.3 Empirical Literature Review

The empirical related literature review is linking the

relationships between various variables that are considered

to have significant impact on the enhancing the organization

performance in association with the modern ICT context as

discussed below.

2.3.1 Trends in the development of the banking industry

Since the 1980s, the banking industry has been in a

process of significant transformation that started in the

United States, and moved later on to Europe, where the

single market and the introduction of the Euro have

contributed to accelerate the process of change. The main

forces behind this transformation of the banking industry

51

are deregulation and innovation in information

technologies. Both forces have brought about increased

competition, not only among banks but also from other

financial, and even non-financial, institutions. As a

result of increased competition, the banking business has

changed and, for example, while margins in lending

operations have lowered, banks rely increasingly on income

from fees services rather than interest rate spreads.8

additionally, competition has, in some cases, encouraged

banks towards

taking higher risks (for example, by lending to developing

countries) for which there might not be enough

compensation. This issue, the higher risks9 banks may be

incurring in their operations, matters especially to

regulation authorities, because of the safety net they

intend to provide (which was recently applied widely to

Japanese banks, for instance).On the other hand, the

transformation of the banking industry has contributed to

blurring the differences between retail, wholesale and

investment banking. Yet, banks in America have tended

towards specialisation, while in Europe it is the concept

of universal banking (one bank for all) that prevails. The

developments in information technology that have been

behind the transformation of the banking industry by

providing the means to unbundle risks, diversify assets

internationally (though this practice is only in its

52

infancy), or conducting financial transactions on a multi-

currency, global level. 7 A discussion on the workings of

financial intermediaries and financial markets can be

found in Rogoff (1999).

2.3.2 The Banking Industry of Tanzania

The banking Industry in Tanzania has tremendously changed

its dynamics for the last one decade. Many banks have

joined the industry both local and foreign. Notably, the

nobanks financial institutions have been mushrooming by an

alarming speed. For this very reason the players in the

banking industry need to consider their competitive

positioning and repositioning strategically. In mid 1960s

the industry had only one bank, National Bank of Commerce.

It can therefore be said that in 1960s the industry had a

monopolistic structure. In 1986, Corporate and Rural

Development Bank (CRDB) was established hence to make the

industry to experience a duopolistic market structure. In

any industry, including the banking industry, the nature

of competition is always a function of the market

structure. The trend today is a perfect competition and

the central bank has withdrawn from managing the market

forces. Banks are now working on their own about what are

relevant products and rates to be offered to the market.

In this regard the need for the assessment of the

attractiveness of the industry becomes a necessity.

53

The industry has various key players. These to include;

Fully fledged banks (commercial and non Commercial),

Regional Unit Banks, Financial Institutions, Regional

Financial Institutions, Regional Unit Financial

Institutions and Bureaux de Change. As of December 2005,

the banking supervision of the Bank of Tanzania has

approved and register the key players of the banking

sector of Tanzania as follows: Fully Fledged banks (22),

Regional Unit Banks (5), Financial Institutions (5),

Bureux de Change (102).

2.3.3 Abroad Case

Nigeria

The revolution in ICT has made the banking sector changed

from the traditional mode of operations top resumably

better ways with technological innovation that improves

efficiency. ICT can enhance efficiency via its use and in

recent times banks have been encouraged by the rapid

decline in the price of ICT gadgets. This has perhaps

increased the bank level of ICT usage (Ovia, 2005).The

increase might have also be attributable to business

environment that became relatively flexible to accommodate

new forms of technological change as a result of reforms

in the country .Banking is becoming highly ICT based and

because of its inter-sectoral link, it appears to be

54

reaping mostof the benefits of revolution in technology,

as can be seen by its application to almost all areas of

its activities (Akinuli, 1999). It has broadened the scope

of banking practices and changed the nature of banking as

well as the competitive environment in which they operate.

A broad opening has been experienced around the world for

banks and they are currently taking due advantage of these

innovations to provide improved customer services in the

face of competition and faster services that enhance

productivity (Akinuli, 1999; Ovia,2005).Technological

advancement facilitates payments and creates convenient

alternatives to cash and cheque for making transactions.

Such new practices have led to the development of a truly

global, seamless and Internet enabled 24-hour business of

banking. Technological advance in payments are important

due tothe fact that it will be feasible to outsource quite

a number of the banks’ role in the payments system .Also

banks’ regulation can be more technologically dependent

and better focused rather than focusing on conceptual

guidelines. ICT revolution both in terms of innovation

rate, speedy operation, and cost per unit(portraying

reduction in average total and marginal costs) has made a

good number of banks embrace the use of ICT infrastructure

in their operations (Akinuli, 1999).The technological

innovation that is being witnessed currently in the

Nigerian banking sector is possible of impacting on the

55

banks’ mode of transactions especially in their payment

systems. The payment systems are made feasible by ICT

gadgets such as Automated Teller Machine (ATM), Electronic

Fund Transfer (EFT), Clearing House Automated Payments

(CHAPs), Electronic Purse (E-PURSE),Automated Cheque

Sorter (ACS) and Electronic and Transfer at Point of Sale

(EFTPOS), which have made transactions easy and

convenient. This phenomenon is capable of bringing about

speedy operations and enhanced productivity (Adeoti, 2005;

Ovia, 2005). Though there may be little interruptions at

times due to network failures, which may make customers

unable to carry out transactions at that point in time.

This little shortcoming is not in any way comparable to

the days when banking halls were characterized by long

queues mainly as a result of delays in the traditional

banking operations.

Europe

Continental Europe remains a highly bancarised economy

with the most part of savings and investment in the

economy being channelled through banks10. The

restructuring of the banking industry has gained momentum

after the introduction of the Euro and the single market.

The number of mergers and acquisitions in the sector has

grown, as the consolidation has intensified. Moreover,

56

while up to recently concentration remained mainly

domestic, cross-border operations have begun (for example,

the Portuguese Champalinaud group and the Spanish banking

group Banco Santander Central Hispano), and are expected

to intensify in the near future, in spite of governments’

resilience in some cases. Between 1994 and 1997, the

number of credit institutions in the EU has moved from

10,080 to 9,109, a 10% decrease. Analysts still consider

Europe overbanked, yet the consolidation of European

banking may not go as far as economic considerations might

suggest, because of the differences in languages, cultures

and regulatory environments among EU countries. Today’s

banking markets in Europe, especially retail banking, are

not very homogeneous and, in fact, remain quite

fragmented. In general terms, European banking continues

to be highly regulated. Many banks are owned or

participated by the state, or receive indirect support

from it11. The emphasis on banking policy has been on

stability rather than efficiency. State-owned institutions

and mutual banks are especially significant in France and

Germany. The situation in the peripheral countries such as

Italy, Ireland, Portugal or Spain, is generally different,

and retail banking tends to be a more profitable business.

Because they have been more profitable, banks in these

countries have generally stayed out of investment banking

and emerging-market lending.

57

The United States

In the United States, the banking industry has changed

considerably during the 1990s in a process of growing

competition and specialisation. Restructuring and

consolidation of the sector have occurred to a greater

extent than in continental Europe, with the number of

banks declining from 36,103 to 22,140 during the period

1980 to 1997. Increased competition has contributed to

changing the composition of products in the industry. In

this manner, as margins on corporate lending have been

declining, banks have increased the share of their

revenues coming from non-interest sources such as

commissions on asset management, trading or securities

underwriting. A second tendency in the industry is

securitisation, that is, banks transform their loans to

companies, credit cards or mortgages, into tradeable

securities, instead of keeping them on their balance

sheets. Another feature of the American banking industry

is the increasing disintermediation: companies go directly

to a financial market to raise funds, instead of getting

them from a financial intermediary like a bank. 10 See

White (1999), “The coming transformation of European

Banking”. 11 In Germany, for example, less than one third

of deposits by value are held within the privately owned

banking sector.

58

59

Spain

Within the Spanish banking sector, there are two sets of

institutions -commercial banks and savings banks- which

can, as a generalisation, be identified with two different

business strategies. These distinctive business strategies

have not originated with technology induced changes; they

are rather the continuity of historically different

businesses strategies; widely recognised in the

literature. Until quite recently, commercial and savings

banks were subject to different regulation. Lozano-Vivas

(1998) analyses the effects of deregulation12 in Spanish

banks during the period 1985-1991. She examines frontier

cost efficiency and technical change and finds evidence of

differential response to deregulation of commercial and

savings banks. During the period of the study, commercial

banks focused on adjusting their deposit and loan rates as

a response to increased competition; while savings banks

focused on expanding the size and convenience of their

branch operations and undertook a series of mergers

following the removal of geographical restrictions. The

study shows that, in a sense, commercial banks could be

approximated to wholesale banks, whereas savings banks

could be characterised more like retail banks. We use

these empirical results that show the distinctive features

of commercial and

60

savings banks in the late 1980s, to design our study which

will assess whether the responses to technology

developments during the 1990s, by commercial and savings

banks, have paralleled those observed in the previous

years. Notwithstanding the fact that commercial banks also

engage in the retail services, and that the opposite is

true for savings banks, we will examine whether technology

has affected the two groups of institutions differently,

as could be hypothesised given the differential effects of

changes in information management on wholesale and retail

banking, presented in the previous section. An obvious

caveat is that the differences observed between commercial

and savings banks might not be exclusively attributable to

technology effects. For instance, although 12 some of the

hallmarks of the deregulation process are the following:

On March 1987 started the liberalization of interest

rates. This marked the beginning of increased competition

in short-term bank liabilities. Until then, interest rates

were regulated in the case of demand deposits and time

deposits with maturity less than 6 months, or, for longer

maturities, those of amount less than 1 milion ptas and

maturity under a year. Those deposits represented about

45-55% of savings banks’ liabilities, and 35% of

commercial banks’liabilities.

In 1987, the interbank interest rate increases

significantly. Commercial banks reacted by increasing

61

their intermediation margins, while the savings banks

strategy consisted of reducing margins as a means of

gaining market share.

By the end of 1989, there is another considerable increase

in competition affecting bank liabilities. This starts

with the new ''supercuentas'' launched by Banco Santander.

As a result, margins are reduced further. 92 the main

deregulation phase started in the mid-80s and the most

effects of this process must have been observable by 1992,

some effects may have only appeared later on. Moreover, as

we have already mentioned, the evolution of the banking

industry during the 1990s will also reflect the effects of

EMU. Because retail banking has a more local character, we

would expect that EMU would have affected it to a lesser

extent than wholesale banking. Another consideration is

the legal status of Spanish savings banks. Together with

German savings banks, Spanish savings banks are alone in

the EU in maintaining their traditional status of mutual

banks.13 Other empirical studies are main references in

the literature on the Spanish banking sector. Among the

most relevant are the studies that measure bank

efficiency. Because of the relationship between technology

and efficiency, a common approach to assess technological

impact is through estimating production frontiers. In this

line of research are: Grifell et al. (1992) and Grifell and

Lowell (1996) and Prior and Salas (1994).

62

Japan.

Japanese banks are still facing restructuring plans after

a poor performance record that left them in a difficult

financial situation. Yet the worst of the severe banking

problems in late 1997 and 1998 might be over, as almost

all of the Japanese largest banks obtained profits in the

first half of 1999. However, these results are partially

due to implicit and explicit support from their

government. The biggest banks received public funds of

around 7.45 trillion yens during 1999, a sum equivalent to

half their equity. Also contributing to results are the

cheap costs of obtaining funds: the “zero interest rate

policy” implemented by the Bank of Japan in 1999.

Additional factors that might have contributed to

improvement of results are better management of bad loans

and tighter cost controls. Yet Japanese banks require

further restructuring if they are to become globally

competitive again. During 1999, the Financial Supervisory

Authority took over the Finance Ministry in the regulation

of Japanese banks. The FSA injected funds in the banking

industry that were intended to clearing out bad debts, and

also help in the restructuring process involving a

reduction in costs as well as the closing of some banks.

Concerning the technological challenge, Japanese banks

have been under-investing in technology for several years,

63

as considerable amounts of funds had to be applied to

write down bad debts.

Various empirical studies on information technology and its

impact on sectors in various countries have been conducted

over the years. Various scholars such as Wilson (1993),

Freund, Konig and Roth (1997), Radeck, Wenninger and

Orlow(1997), O’Sullivan (1998, 2000) and others have been

engaged in unending discourse on the positive payoffs

emanating from the utilization of information technology in

various enterprises. Such academic debates have resulted in

the origin of the term ‘information technology productivity

paradox’ which is concerned with appraising the impact of

information technology on operational efficiency and the

productivity of organizations. A cursory look at the

industry level studies of the nineties such as the works

ofWilson (1993), Jordan, John and Katz (1999), Furst, Lang

and Nolle (1998) portray that in many instances a positive

correlation is posited between increased investment in

information technology and productivity. On the contrary,

other works such as those of Strassman (1990), Morrison and

Berndt (1990), Dos-Santos and others (1993) show that

additional investments in information technology does not

necessarily contribute positively to productivity. Such

works argue that the estimated marginal benefits are less

that the estimated marginal costs; that for each additional

64

dollar spent in information technology equipment, the

marginal increase in measured output was only eighty cents.

Brynjolfsson and Hitt (1996) noted that most of such results

from researches account for what he referred to as the

‘economic theory of equilibrium’. This means that increased

profitability is not necessarily a byproduct of increased

spending in information technology. Some other researchers

such as Loveman (1994), Lichtenberg (1995) and others have

worked on ICT impact at the level of firms. Loveman in his

work complied data from the Management Productivity and

Information database (MPIT). He discovered that the

utilization of information technology made no significant

impact to the output of manufacturing firms. Lichtenberg in

his work obtained his data from yearly surveys conducted

from the eighties to the nineties by Computer world

magazines. Empirical reports on impact analysis of

information technology in developing countries especially

Tanzania are quite few. It is upon this premise that this

study is designed to fill this gap in the body of knowledge.

Information Technologies and the banking industry

Information technologies are having a great impact in the

reshaping of the banking industry by leading to the

development of new financial products and of new means of

delivering them. With regards to the delivery of products,

for instance, the last decades have seen the appearance of

65

Automated Tellers Machines (ATMs) and telephone banking,

and are now seeing the spread of Internet banking. These

new channels for the delivery of products have the

advantage for costumers of longer hours of service, but

are also a more efficient, cheaper means of delivering the

products. According to a study by Sybase, a transaction at

a traditional “brick-and-mortar” office costs 1.07 euros,

the same transaction costs 55 eurocents over the

telephone, 27 eurocents at an ATMs, and 1 eurocent only

through the Internet. Quite in accordance with these

figures, many banks already report a majority of

transactions being conducted electronically without

personal contact between client and bank employee. This

assertion is especially true with payments systems, and

above all in Europe, with direct debit systems, than in

the United States. Moreover, further effects from

technology developments are envisaged. For example, with

regards to means of payment, Barclays, a British bank, in

a similar strategy to that carried out by American Express

in the United States, announced in late 1999 that the bank

was considering handing out free smart card readers to

their credit card holders, so that these cards could be

used to pay for transactions over the Internet. It is

expected that, in the near future, all PCs will come with

a slot capable of accepting smart cards, which would

contribute to the expansion of electronic money products

66

such as Mondex or Visa Cash.In Europe, technology

developments have combined with the arrival of the Euro in

influencing the transformation of the banking industry. In

this manner, for instance, with the arrival of the Euro,

there has been a concentration of the cash management

business, which was previously spread among a range of

banks in different European countries. In 1999 Société

Générale, a French bank, set up a joint venture (Hubsys)

with PwC, an accounting and consultancy firm, to handle

the bank’s cash management and payment processing and to

sell similar services to other banks across the euro-zone.

It is envisaged that the cash management market will be

formed by a few institutions only, that will be able to

handle the large volume necessary to achieve economies of

scale that can pay for the necessary investments in

technology. Finally, it should be noticed that while the

rapid development of information technology has made some

banking tasks more efficient and cheaper, technological

investments are taking a larger share of bank’s resources.

Currently, apart from personnel costs, technology is

usually the biggest item in the budget of a bank, and the

fastest growing one.

Internet

Internet is expected to have a strong impact on the

banking business in the coming years. Although its market

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share is still very small (Table 1.5), Internet banking is

expected to grow fast. Banks on the Internet can be

classified into banks tha are exclusively online (as for

example the American E-LOAN or in Europe, First-e, Egg, or

Smile) or traditional banks for which Internet is an

additional distribution channel (in Europe, Bankinter,

Barclays or SEB). Although Internet banking originated in

the United States, on-line banking in Europe does not lag

behind. It is in the Scandinavian countries and Germany

where Internet banking is more advanced (Table 1.4). More

than a quarter of Merita Nordbanken, a Finnish-Swedish

firm, clients use its online bank, and in Germany, the

biggest four banks operate online. It should also be

noticed that in France, the progress of Internet might

have been slow, but there Minitel offers since the 1980s

some of the online banking services that are now provided

by Internet.

are important. With the development of Internet banking,

competition is expected to increase in the sector. Yet

competition will not only originate within the banking

industry, but also from other financial intermediaries

such as insurance companies (for instance Prudential, a

Britain’s biggest life insurer launched in 1998 a

telephone and internet bank called Egg). Moreover,

competition may come as well from non-financial firms,

such as technology companies that control communications

68

networks and the gateways to them. Such companies could

set up themselves as brokers, directing consumers to the

most suitable product for them. In this respect, Sony is

moving into Internet banking after setting up a joint

venture online brokerage firm. It should be noticed that

even before the development of the Internet, nonfinancial

companies had entered the financial business: car

manufacturers (General Motors is a provider of credit),

department stores or supermarkets (In Britain, supermarket

chains as Tesco and Sainsburys take deposits).

On the other hand, banks are in turn considering using

the Internet to widen the scope of their businesses to

include, for instance, shopping. For example, Banesto, a

Spanish bank, provides electronic access to stores from

the bank’s web site, trying to become an e-commerce

portal. Instead of the prevalence of “one-bank-for-all”,

as in Europe, U.S. banks are mostly specialised on

investment banking, corporate finance, venture capital, or

asset management. Even within the group of retail banking,

there are banks that specialise on consumers, on small

businesses or on credit cards.

Deregulation has been one of the underlying forces in the

transformation undergone by the United States’ banking

industry in the past years. Yet the deepest restructuring

in the financial sector may still have to take place. In

1999, there has been a profound shift in regulation with

69

the removal of the enforced separation of commercial

banking, investment banking and insurance. With the

retracting of the Glass-Steagall Act (which dates back to

the times of the Great Depression) major new affiliations

in the financial industry are expected.

ICT and its Specific Competitive Factors

Being an area that dealt with operations’ performance

improvement, organizations are likely to perform better if

they can posses a modern ICT system which must be linked

with such features as; Understand the working environment,

visionary, flexible, create management option, and encourage

team work and open discussion. Other feature could be

building a coalition of supporters, perseverance,

Innovation, Hard working, and Trustworthiness of all

stakeholders (Hisrich, 2004, Borness et al, 1999).

The Management Information Systems and ICT Context

The process of managing organization’s performance is full

of uncertainties, especially in the emerging free market

state. As provided by Justin et al (2008), because of

uncertainties and work organization specificity,

organization performance management must be a process of

learning, selective adaptation, and field upgrading

particularly in term of ICT. Experimentation, trial and

error, incubation, and innovation should play important

70

roles in facilitating a successful process of learning,

selective adaptation and field upgrading. The learning

process should be used to help both organization management

and employees to optimize on those competitive features

relevant for enhancing field upgrading so that they better

cope with the market demand.

As provided by Ngirwa (2005), organizations’ managers are

managing aiming at facilitating the attainment of the work

organizations’ objectives. On the other hand, the

organizations’ performance objectives can easily be attained

if the use of the modern ICT can be adopted. In implementing

their prescribed performance objectives, organization

managements adopting the modern management style are more

like to show positive response to ICT conditions and

guideline as opposed to the context under the use of the

traditional management style that has been dominant in most

of the developing countries. This state of conflict calls

for high level of organization managements’ innovation

ability to enable undertake R & D and influence other

stakeholders to adopt the use of modern management style and

ICT so that they can improve their potential for attaining

the competitive edge as well as the going concern. Feidman

(2005) provides that in case of conflicting context between

the organizations’ adopted ICT and the actual market demand,

the market interests must prevail.

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Basically, good learning management and other stakeholders

have to learn selectively and by doing from the experienced

of others. By so doing, a complete learning process can lead

to a learning group to catch up at a pace that is consistent

with its target market demand, organizational capacity and

interests.

Globalization Context and the Modern ICT

The traditional organization management’s role of managing

performance emphasized on ICT adoption relation on the basis

of security for royalty and encouraged a non team work

spirit. The responsibility of ICT development and management

was completely owned by the organization’s management with

greater demand of skills in organization specific interests.

This was contrary to the globalization context of

organization management’s role of managing operation that

calls for relationships in term of effectiveness and

efficiency in performance. It also emphasize on flexibility

while setting boundaries in multiple organization through

adopting the modern ICT. The central responsibility for ICT

development and management is on both organizations’

management and individual employee, but most competitive

organizations are those with transferable skills in term of

ICT development and management. A success criteria that

makes more sense under globalization context and ICT

development and management includes; growth through

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developing new skills and abilities, personal satisfaction,

enjoyable and challenging work assignments. Other success

criteria are personal or group achievement, independence,

recognition and the ability to spend more time sharpening

the sour so that the practical ground can be enjoyable and

fruitful. It can also provide stakeholders with time to

pursue interests outside of work and to better balance work

and life conflicts (Prasad, 2006).

The Modern ICT and Organization Performance Context

Not surprisingly the modern ICT influence productivity

although the strength of the link between one organization

and the other varies. But, generally managers strive for

consistency between the improvements of the organization

performance as a result of adopting the modern ICT concepts.

Furthermore, people are fairly dynamic in their attitudes

toward the relationships between the adoption of a modern

technology and the likely performance changes and all

possible challenges. Interestingly, not only do the modern

technologies influence the organization performance, but

sometimes the organization’s management style, experience,

and employees’ performance capability have greater part to

play (Fildeman, 2004)

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2.4 Conceptual Framework

The concept behind this study will reflect on how the modern

ICT development and management can influence organizations’

performance. The bottom line is that the concept of ICT is

critical if an organization culture intends to crate a

sustainable performance as indicated in figure 2.1 below:

Figure: 2. 1; An Organization’s Performance Improvement

model

→→→ →→→

Source: Robins (2005), James (1998), Turban et al (1996) and

Brian et al (1999)

74

Modern ICT Adoption and Managemen

Employees’ Positive Attitude to the Organizat

An optimum Organization Performance

The Rationale for Selecting an Organization’s Performance

Improvement Model

An Organization’s Performance Improvement Model embraces the

experiential-phenomenological perspective. It supports the

organization’s management and other stakeholders to learn

from their operational experience. It also acknowledges the

performance enhancement and the organization’s management

and other stakeholders’ utilizations of the process-oriented

technique to meet their performance needs through the

adoption of the concept of a modern ICT development and

management.

It recognizes that organizations’ performance management is

dynamic and there is more variation within it. Moreover, it

has implications for practice. So, it can be delivered to

organizations’ management stakeholders in any setting, in

order to increase their level of operations competence.

Thus, it can most fit for the proposed study

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CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

This section gave details related to research methodologies

such as research paradigm, research design, and area of

study, study population and sample size. Others were such as

data collection techniques / tools and data analysis

techniques. It also provided details on validity and

reliability testing techniques.

3.2 Research Paradigm

The operations research is essentially concerned with

exploring and understanding the phenomena which are

operational in nature especially in relation to ICT

development and management. It is mainly pertaining to

formalized and/or spontaneously occurring events that are

likely to affect the organizations’ performance which can be

managed using sound ICT strategies. In doing so, it deals

with operation questions that can be investigated in a

satisfactory manner, and the methods which enable such

satisfactory investigation and the utility of results from

such investigation (Dash, 1993). Since theoretical questions

in operations management come from different conceptions and

interpretations of the operations’ reality, different

paradigms can be used to determine the criteria according to

which one would select and define problems for inquiry.

76

According to the term ‘paradigm’, means “An integrated

cluster of substantive concepts, variables and problems

attached with corresponding methodological approaches and

tools”. There are mainly two paradigms to the verification

of theoretical propositions, i.e. positivism and anti-

positivism (or naturalistic inquiry). But, for the sake of

this study the researcher will adopt the positivist paradigm

as detailed below.

3.2.1 Positivism Paradigm

The positivist paradigm of exploring operations reality is

based on the philosophical ideas of the French philosopher

August Comte, who emphasized observation and reason as means

of understanding human behaviors. According to him, true

knowledge is based on experience of senses and can be

obtained by observation and experiment. It emphasizes

objectivist approach to studying various phenomena and give

importance to research methods focusing on quantitative

analysis and surveys as shown in table 3.1 below.

Table 3.1: Criteria for Selection of Research Paradigms and

Research Methods  

Research

Paradigms

Research

Approach

Research Methods

Positivism Quantitati

ve

Surveys:

Longitudinal

Cross-Sectional

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Correlation Source: Canen et al (2000)

Positivistic thinkers adopt this paradigm as a means of

knowledge generation. Hence, it has to be understood within

the framework of the principles and assumptions. These

assumptions are determinism, empiricism, parsimony, and generality

(Conen et al, 2000)

Determinism means that events are caused by other

circumstances; and hence, understanding such casual links is

necessary for prediction and control.

Empiricism means collection of verifiable empirical

evidences in support of theories or hypotheses.

Parsimony refers to the explanation of the phenomena in the

most economic way possible.

Generality is the process of generalizing the observation of

the particular phenomenon to the world at large.

With these assumptions of science, the ultimate goal of the

researcher will be to integrate and systematize findings

into a meaningful pattern or theory which will be regarded

as tentative and not the ultimate truth. The researcher will

use the positivistic paradigm to systematize the knowledge

generation process with the help of quantification. This

will essentially enhance precision in the description of

parameters and the discernment of the relationship among

variables.

78

The following questions were used by the researcher in

selecting a research paradigm and corresponding methodology:

i. What was the nature or essence of the operations

phenomena that will be investigated?

ii. Was the operations’ phenomenon be objective in nature?

iii. What will be the bases of knowledge corresponding to

the operation reality?

iv. How knowledge was acquired and disseminated?

v. What was the relationship of individual firms with

their environment? Will the relationships be

conditioned by the environment or will the environment

be created by the firms?

Based on the above criteria for selection of research

paradigms and research methods, assumptions and questions,

the researcher identified whether the research approach

would be pertaining to positivism or anti-positivism and

opted for an appropriate methodology accordingly.

3.3 Research Design

Since the researcher aimed at collecting the data once,

processing them and provide an appropriate report, the study

was mainly descriptive cross – sectional. It was conducted

using a case study technique by collecting primary data at

one institution (NBC) using questionnaires. This provided

detailed information for the researcher to be able to

command a generalized result given that the operational

79

environments are similar in most of the organizations in the

URT (Saunders, 2005).

3.3.1 Research Approach

The researcher used quantitative research approach in

conducting the study. The quantitative approach that dealt

with the same aspects for the quantifiable data.

3.4 Study Population

Having determined the banking industry as the study

population, the researcher conducted the rest of the

sampling procedure within the targeted population were 40

people selected

3.5 Sampling Procedure

As provided by Churchill (2007), the researcher draw the

sample to the population of study under six steps as

explained below:

3.5.1 Area of Study

Because of the limitation posed on financial resources, time

and human resources, the study was conducted at the NBC; it

was done to 5 different branches in Dar es Salaam.

80

3.5.2 The Sampling Frame

From the population of study, the researcher selected the

NBC as the sampling frame in which the research 40 people

were selected to represent the population of study. This was

sufficient to give the required information that helped the

researcher to answer the established research questions so

as to satisfy the general and specific pre-determined

research objectives.

3.5.3 Sampling Procedure

In accordance to the framework from which the study

originates, the non probability sampling method was applied

as proposed by Baradyana et al (2005). The researcher

selected 8 people from 5 different branches to represent

the population of study on the basis of convenience subject

to the available resources such as time, human resources and

finance.

3.5.4 Sample Size

The study involved forty respondents who presented the

population of study the customer base as shown in table 3.1

below. The selected sample will be sufficient to represent

the population of study and the collected data will be

sufficient to command generalized results.

Table: 3.2 Research Sample Selection Criteria

81

Research SampleHR Managers Employees Total Sample

10 30 40

Source: Own Development (2011)

82

3.5.5 Research Variables

Based on the theme of the study the researcher classified

the research variables as presented in table 3.2 below.

Table 3.3: Research Variable Names and Classifications

Independ

ent

Variable

s

VARIABLE

DESCRIPTION

Depende

nt

Variabl

es

VARIABLE

DESCRIPTION

1. Strategy 1. Performance

1.1 ATMs uses

1.1 Customers

retention

1.2 R & D concept

1.2 Revenue

growth1.3 Corporate

downsizing

1.3 Controlling

queue1.4 Employees

Training and

development

1.4Customer

participation1.5 Customers’

training 1.5 work process

1.6 Computer uses

1.6 Nature of

customer1.7Qualifications

of employees

1.7 working

hoursSource: Ngirwa (2005), Kotler, et. al (2006) and Johnson, et. al

(1999)

83

3.5.6 Data Collection Techniques

Using questionnaires, the researcher collected the required

data through circulating the questionnaires to the

conveniently selected respondents; this was the principal

data collection instrument because the nature, depth and

operating environment are similar. Two set of questionnaires

was designed and distributed to respondents within the

selected sample frame (management and customers) as

indicated in table 3.3 above.

CHAPTER FOUR

PRESENTATION OF STUDY FINDINGS

4.1 Introduction

This section contains the responses from NBC staff. In

general the responses were obtained from NBC employees, 10

were HR managers and 30 were other employees making a total

of 40 respondents out of 45 previously expected respondents

which is a rate of 89%

4.2 Characteristics of the respondents

84

This part discuses the description of the respondents before

discussing the specific research questions.

Respondents’ characteristics are discussed in terms of

gender, education level and age of the respondents

4.2.1 Gender of the respondents

The respondents were asked to state their gender. The

findings indicated that 25 were female and 15 were male as

shown in the table 4.1this implied that more female workers

responded as well more female are engaging in the modern

Technology.

Table 4.1 Gender of Respondents

Gender Frequency Percent

Cumulative

Percent

Male 15 37.5 37.5

Female 25 62.5 100

Total 40 100.0

Source: Field Data (2011)

85

Source: Analysed Data ,2011

4.2.2 Education level of the respondents

Respondents were asked about their education level that is

the highest level reached in terms of secondary, diploma and

university level. The study found that most respondents have

at least a university degree and the distributions of the

respondents were as shown in the table 4.2

Table 4.2 Education level of respondents

Levels Frequency Percent

Cumulative

Percent

Diploma 10 25 25

University 30 75 100

Total 40 100.0

Source: analyzed data (2011)

86

A university degree is a good level of education which

enables the respondents to understand the questions which

the study was addressing and also be able to learn and adopt

new technology faster compared to any low level of

education.

87

4.2.3 Age of Respondents

The respondents were asked to state their year of birth. The

study found that there were a mixture of respondents and

most of them were lying between 36 and 46 years as shown in

table 4.3

Table 4.3 Age profile of respondents

Range Frequency Percent Cumulative Percent

25-35 20 50.0 50.0

36-46 15 37.5 87.5

More than 47

years5 12.50 100.0

Total 40 100.0

Source: analyzed data (2011)

The table above indicates that most of the respondents were

in the age bracket of the people who are expected to be

active and conversant with the issues of technology, an

issue in which this study is concerned.

88

Source: Analyzed Data, 2011

4.3 Data presentation from the findingsThis section provides a summary of responses from the field

especially as research questions are concerned, these are

important because they are the ones which gives the picture

of the respondents’ opinion on various aspects pertaining

the impact of modern technology to the performance of

financial service sector.

4.3.1The analysis of the finding on assessment of the

relationship between adoption of modern ICT and organization

performance.

The research question number 1 sought to determine whether

there is a relationship between the adoption of modern

technology and the performance.

89

4.3.1.1 Customer orientation vs. performance

The respondents were asked whether customers’ orientation in

adopting modern technology can influence performance.

The result of the respondents are summarized below in table

4.4

Table 4.4 Customers Orientation

Response Frequency Percent

Strongly agree 20 50.0

Agree 18 45.0

Neither agree nor

disagree2 5.0

Total 40 100.0

Source: analyzed data (2011)

90

Source: Analyzed Data, 2011

From the table it can be seen that 50% of the respondents

strongly agreed that customers orientation in adopting a

modern technology can influence performance of the

employees’ in the financial services sector. On the other

hand, 45% agreed on the same bases while only 5% of the

respondents neither agreed nor disagreed with the concept

that observing the concept of customers’ orientation when

adopting a modern technology can influence the financial

services sector performance significantly.

Therefore, the researcher provides that almost 95% of the

respondents supported the view that observing the concept of

customers’ orientation when adopting a modern technology can

enhance the performance of the financial services sector

reasonably particularly in the Tanzanian context. This can

91

be due to a reason that probably majority of the customers’

attitude, interests will be made as part of the technology

at hand and this will reduce their fear of changing to

technology oriented business.(Olson et al, 2005).

4.3.1.2 Impact of technology on revenue growth

Respondents were asked whether revenue growth can be

enhanced by modern technology.

The responses are summarized in the table 4.5 below

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Table 4.5: Revenue growth

Response Frequency Percent

Cumulative

Percent

Strongly agree 8 20.0 20.0

Agree 22 55.0 75.0

Neither agree nor

disagree10 25.0 100.0

Total 40 100.0

Source: analyzed data (2011)

Source: Analyzed Data, 2011

As shown in table above 20% of the respondents strongly

agreed that revenue growth can be enhanced by the adoption

of a modern technology. On the other hand, 55% agreed that

93

the adoption of a modern technology can strongly influence

the performance of the financial service sector hence

revenue growth as indicated by the respondents under this

variable.

25% of the respondents neither agreed nor disagreed with

such concept in relation to the impact of a modern

technology on revenue growth of the financial services

sector.

Therefore, the researcher argues that almost 75% of the

respondents had the view that the adoption of the modern

technology by work organizations can enhance their

reasonable performance which leads to revenue growth as

reflected by the respondents under this variable. This can

be linked with the view that a modern technology can

simplify the process of performing the tasks and maximize

the chances for the human resources performing at a higher

level. Thus, delivering greater productivity to both

employees and organization (Otis, 2000)

4.3.1.3 The analysis of the finding on how modern technology

can help to control queue

Respondents were asked whether modern technology can help to

reduce queue by financial institutions, this means

minimization of the time to serve a customer in the bank

94

Their responses are summarized below in table 4.6 below

Table 4.6: Controlled queue

Response Frequency Percent

Cumulative

Percent

Strongly agree 8 20.0 20.0

Agree 24 60.0 80.0

Neither agree nor

disagree4 10.0 90.0

Disagree 2 5.0 95.0

Strongly disagree 2 5.0 100.0

Total 40 100.0

95

Source; Analysed data, 2011.

The table above shows that 20% of the respondents strongly

agreed that the adoption of a modern technology can enhance

the speed of workers to reduce the queue. On the other hand,

60% of the respondents agreed on the same aspect while only

10% of the respondents neither agreed nor disagreed with

such argument. Similarly, 5% of the respondents disagreed

that adoption of a modern technology can enhance the

performance of the work organizations by reducing time to

serve the customer as indicated by the respondents under

this variable and the other 5% strongly disagreed on the

usefulness of this concept in relation the performance of a

modern technology.

96

For this case, the researcher asserted that 80% of the

respondents had the view that the adoption of a modern

technology enhances the organizations’ performance while 10%

of the respondents neither agreed nor disagreed with such

argument. Meanwhile, the researcher urges that the adoption

of a modern technology enhances the organizations’

performance significantly.

This is supported by the provision that a modern technology

synergizes the attainment of productivity. Hence, delivering

greater satisfaction and assured responsiveness by all

stakeholders (Jackson et al, 2003)

4.3.1.4 The analysis of the finding on the improvement of

work process though adoption of modern technology

Respondents were asked whether adoption of modern technology

can improve work process. The responses are summarized below

in table 4.7 below.

Table 4.7: Work process

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Response Frequency Percent

Cumulative

Percent

Strongly agree 16 40.0 40.0

Agree 16 40.0 80.0

Neither agree nor

disagree2 5.0 85.0

Disagree 4 10.0 95.0

Strongly disagree 2 5.0 100.0

Total 40 100.0

98

Source: analyzed data 2011

From the table it can be noticed that, 40% of the

respondents strongly agreed that adoption of modern

technology can improve work process thus improving

performance of the organization. Similarly 40% of the

respondents agreed that the adoption of modern technology

leads improved work process thus improve the organizations’

performance while only 5% of the respondents neither agreed

nor disagreed with such perspective. Also, 10% of the

respondents disagreed with the same aspect and the other 5%

strongly disagreed on the usefulness of this concept in

improving the organizations’ performance.

For this case, the researcher asserted that 85% of the

respondents had the view that the adoption of modern

technology can lead to improved work process and strongly

enhance the organizations’ performance while 5% of the

respondents neither agreed nor disagreed with such argument.

Meanwhile, the researcher urges that the adoption of a

modern technology and improved work process can

significantly enhance the performance of an organization.

This is supported by the provision that improving the work

process and the use of modern technology are two factors

that can satisfy the employees and the customers. Hence,

99

assured responsiveness by either parties (Tjosvold et al,

1995)

4.3.1.5 The analysis of the finding on the relationship

between the working hours and the adoptions of modern

technology

Respondents were asked their opinion on the relationship

between the adoption of modern technology and increased

working hours by financial institutions. Their responses are

summarized in the table 4.8 below;

Table 4.8: Working hours

Response Frequency Percent

Strongly agree 11 55.0

Agree 19 45.0

Total 30 100.0

Source: Field Data (2011)

100

Source: Analyzed Data, 2011

From the table it can be noticed that 55% of the respondents

strongly agreed that adoption of modern technology can help

to increase hours which customers can access banking

services, this can be through the use of ATMs, internet

banking and mobile banking.45% of the respondents also

agreed on the same bases.

Therefore, the researcher presents that almost 100% of the

respondents support the view that adoption of modern

technology can enhance in maximum performance by giving

customers access to their services 24 hours a day. Thus this

can be a pre – requisite for competitive organizations’

performance (Gardner et al.1999).

101

4.3.2 Analysis of the finding on Strategies for Optimum

Utilization of the Modern ICT

The second research objective aimed to find out the

strategic roles of the organization that were used to

enhance an optimum utilization of modern ICT

The respondents were asked to provide their opinion on the

strategies used by organizations’ to ensure optimum

utilization of ICT. They were requested to indicate the

variable which they believe it ensure optimum utilization of

the modern ICT

4.3.2.1 How ATMs ensure optimum utilization of modern

technology

Respondents were asked to provide their opinion whether ATMs

facilitate optimum utilization of modern ICT. The responses

are summarized below in table 4.9

Table 4.9: Automated Teller Machines uses

Response Frequency Percent

Strongly agree 12 35.0

Agree 24 60.0

Neither agree nor

disagree4 5.0

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Response Frequency Percent

Total 40 100.0

Source: Analyzed Data, 2011

The results from the table above show that, 35% of the

respondents strongly agreed that the use of ATMs shows that

ICT is being utilized in the financial institutions which

improves their performance. The other segment of respondents

amounting up to 60% agreed on the same context while only 5%

of the respondents neither agreed nor disagreed with the

concept.

This implies that almost 95% of the respondents supported

the view that the use of ATMs is one of the strategies to

ensure utilization of modern ICT by Financial Institutions.

4.3.2.2 How research and development ensure optimum

utilization of modern technology

The respondents’ were asked on what they can say according

to the argument that research and development ensure optimum

utilization of modern ICT.Their responses are summarized

below in table 4.10

Table 4.10: Research and Development concept

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Response Frequency Percent

Strongly agree 8 20.0%

Agree 26 65.0%

Neither agree nor

disagree4 10.0%

Disagree 2 5.0%

Total 40 100.0

Source: Analyzed data (2011)

From the table above it can be seen that 20% of the

respondents strongly agreed that even after adopting a

modern technology, R & D still remain as an inseparable

aspect for the organization attaining an optimum performance

levels through ensuring the optimum utilization and

improvement of technology. On the other hand, 65% of the

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respondents agreed on the same context while only 10% of the

respondents neither agreed nor disagreed with such argument.

Similarly, 5% of the respondents strongly disagreed on the

usefulness of this concept in improving the organizations’

performance.

For this case, the researcher declared that 85% of the

respondents suggested that the adoption of the R & D by

organizations’ will help to uncover where technology

contributes to the performance and where it doesn’t, this is

helpful for continuing improvement of the organization

performance.10% of the respondents neither agreed nor

disagreed with such argument. On the other hand, 5% of the

respondent strongly disagreed with the same. Therefore, the

researcher urges that a significant performance of an

organization is subjected on the use of a modern technology

and strong commitment to the concept of R & D concept

(Tjosvold et al, 1995)

4.3.2.3 How corporate downsizing can enhance optimum

utilization of modern technology

Respondents were asked on what there opinions are on the

concept that corporate down sizing ensures optimum

utilization of modern ICT.Their response were as summarized

in table 4.11 below;

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Table 4.11: Corporate downsizing

Response Frequency Percent

Strongly

agree16 40.0

Agree 24 60.0

Total 40 100

Source: Field Data (2011)

Source: Analyzed Data, 2011

As shown in table above, 40% of the respondents strongly

agreed that a corporate downsizing in relation to the

organizations’ adoption of a modern technology is an

indicator of the aspect that an optimum organizations’

performance is subjected to the adoption of a modern

technology particularly in case of maintaining the

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production level or increasing. Similarly another segment of

respondents at almost 60% agreed on the same provision.

Under such bases, the researcher affirmed that almost 100%

of the respondents had the view that corporate downsizing is

and indicator that ICT is being utilized within an

organization. This is in line with the aspect that the use

of labor intensive approach may be linked with high level of

operational costs as opposed to the use of capital intensive

approach by adopting a modern technology that allows

corporate downsizing while maintaining or increasing the

productivity at all levels (Mullins, 2007)

4.3.2.4 How employee training and development ensures

optimum utilization of modern technology

Respondents were asked their opinion on whether employee

training and development can ensure optimum utilization of

modern technology. Their views are summarized below in table

4.12

Table 4.12: Employees Training and development

Response Frequency Percent

Cumulative

Percent

Strongly agree 16 40.0 40.0

Agree 16 40.0 80.0

Neither agree nor

disagree4 10.0 90.0

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Response Frequency Percent

Cumulative

Percent

Disagree 4 10.0 100.0

Total 40 100.0

Source: analysed data (2011)

From the table above it is obvious that, 40% of the

respondents strongly agreed that employee training and

development can enhance the use of modern technology and

thus increase organization performance significantly.

Similarly, 40% of the respondents agreed that such

perspective. On the other hand, 10% of the respondents

neither agreed nor disagreed with such argument while

another 10% of the respondents strongly disagreed on the

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usefulness of this concept in enhancing the utilization of

modern technology.

For this case, the researcher provides that almost 80% of

the respondents had the view that employees training and

development in relation to the use of a modern technology

can strongly enhance the organizations’ performance. This is

probably because the context results in performance

improvement and an appropriate time management (Jackson et

al, 2003)

Several bank clerks complained that courses were too short,

they were not sufficiently

advanced and covered only the basics of computer literacy,

and that they were not always

timed conveniently, as it was not always possible for them

to attend, one respondent commented that:

“I graduated from a local University and have never done any computing

courses and in fact, I have never used computers at all during my studies, so

using computers on my job is a shocking experience”.

4.3.2.5 How customer training enhances optimum utilization

of modern technology

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Respondents were asked their opinion on the usefulness of

training customers to enhance optimum utilization of modern

technology. Their responses are summarized in table 4.13

below.

Table 4.13: Customers’ training

Response Frequency Percent

1 22 55.0

2 12 30.0

3 4 10.0

5 2 5.0

Total 40 100.0

Source: Field Data (2011)

The results from the table above shows that 55% of the

respondents strongly agreed that reasonable customers

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training on the use of various self services in a modern

technology context ensures optimum utilization of modern ICT

and thus can enhance the organizations’ performance and

deliver an optimum satisfaction to both customers and

organizations. Similarly, 30% of the respondents agreed with

this aspect. On the other hand, 10% of the respondents

neither agreed nor disagreed with such argument while

another 5% of the respondents strongly disagreed on the

usefulness of this concept in improving the organizations

performance.

For this case, the researcher provides that almost 80% of

the respondents had the view that the reasonable customers

training in a modern technology context can improve the

organizations’ performance. This is probably because

adopting the maximum training of customers on the use of

self services options of accessing banking services like

ATMs, Internet banking and mobile banking can cut down the

operations costs and increase the productivity (Taylor,

2003)

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4.3.2.6 The usefulness of computers uses in enhancing

utilization of modern ICT

Respondents were asked on whether computer uses is an

enhancement of adopting modern ICT.Their responses were as

summarized in table 4.14 below

Table 4.14: Computer uses

Response Frequency Percent

Cumulative

Percent

Strongly Agree 20 50.0 50.0

Agree 14 35.0 85.0

Neither Agree nor

Disagree4 10.0 95.0

Strongly disagree 2 5.0 100.0

Total 40 100.0

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Source: Field Data (2011)

Results in table 4.3.9 above shows that, 50% of the

respondents strongly agreed that a reasonable use of

computers by employees at work place can be an indicator of

optimum utilization of modern technology. Similarly, 35% of

the respondents agreed on the same concept. On the other

hand, 10% of the respondents neither agreed nor disagreed

with such argument while another 5% of the respondents

strongly disagreed on the usefulness of this concept in

ensuring maximum utilization of modern technology and thus

influencing the organizations’ performance.

For this case, the researcher provides that almost 85% of

the respondents had the view that the reasonable use of

computers by employees strongly indicates the organizations’

state of use of the modern organization. This is probably

because it increases the service rate by simplifying work

thus motivating employees to use the technology.

4.3.2.7 The relation between qualification of employee and

adoption of modern ICT

Respondents were asked on their views on the concept that

qualification of employees can enhance optimum utilization

of modern ICT. The results of their responses are summarized

in table 4.15 below

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Table 4.15: Qualifications of employees

Response Frequency Percent

Cumulative

Percent

Strongly agree 6 15 15.0

Agree 28 70 85.0

Neither agree nor

disagree6 15 100.0

Total 40 100.0

Source: analyzed data (2011)

It was vivid from table 4.15 above that, 15% of the

respondents strongly agreed that employees’ qualifications

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can influence the adoption of a modern technology. On the

other hand, 70% agreed on the same bases while only 15% of

the respondents neither nor disagreed with this context.

Therefore, the researcher provided that almost 85% of the

respondents support the view that employees’ qualifications

and the use of a modern technology goes hand in hand. This

can be due to a reason that highly qualified employees can

learn to use technology easily and be flexible to changes

(Feidman, 2005)

respondents pinpointed a lack of awareness of new

technologies, deficiencies in computer use, fear of

computers, and the low level of technological education

among workforce and senior management. As one participant

from the IT Department mentioned:

“Lack of awareness and understanding of our bank managers and employees

about e-banking and its benefits is the main reason why our bank has been

struggling to implement the system at the projected time”.

This lack of understanding (especially in relation to IT

jargon) was also a concern

raised by the bank’s IT staff. Interviewees indicated that

ignorance of software language

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operates as a key barrier to e-banking in many Libyan banks,

as noted by P3 (an IT manager)who stated:

“IT Language is a main barrier preventing our bank to adopt e-banking

technology.”

Clearly, the lack of know-how and general IT expertise

comprises one of the biggest

obstacles to the adoption and diffusion of e-banking

technologies. The IT management staff, who were had the

expertise made a judgement about the bank’s readiness, and

were of the opinion that this was not simply a problem with

the lower level workforce, but extended to senior management

as well.

4.3.3 The analysis of the finding on challenges in

implementing the Modern ICT Concept.

The research question number three thought to determine the

challenges which organizations face when implementing modern

ICT

The respondents were asked to indicate the most appropriate

challenge that they thought that it contributes to the

difficulties in implementing ICT.

4.3.3.1 How political factor can be a challenge in

implanting modern ICT

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Respondents were asked if political factor is one of the

challenges faced by Organization in implementing modern

ICT.Their responses are summarized in table 4.16 below

Table 4.16: Political Factor

Response Frequency Percent

Cumulative

Percent

Strongly agree 4 10.0 10.0

Agree 22 55.0 65.0

Neither agree nor

disagree14 35.0 100.0

Total 40 100.0

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Source: analyzed data (2011)

According to the study findings 10% of the respondents

strongly agreed that political factors both at national and

firm level are more challenging and can affect the

implementation of modern ICT. Similarly, 55% agreed on the

same concept while only 35% of the respondents neither

agreed nor disagreed with the challenges caused by this

concept in implementation of modern ICT.

This implies that almost 65% of the respondents support the

view that political factor is more challenging and can

affect the organizations’ adoption of new technology. This

can be due to a reason that probably the political factor

determines the stability of various aspects in the people

and organizations’ life and therefore daily operations at

all levels. Thus, organizations’ management should pay

attention on the political.

On the other hand lack of a Strategic Plan was believed to

be a hindrance by some of the interviewees, who felt that

the Tanzanian banks had the financial capability to adopt

e-banking technology, but there was no firm national

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strategy, and consequently, there was a knock-on effect

which slowed down the technology adoption rate. In this

respect, (a senior bank manager) was quoted saying:

“We do not have a national strategic plan for the adoption of technology in

general and e-banking in particular because senior officials of the

Government have not yet realised the value of e-banking technology and it is

not seen as a priority of the government yet”.

This was somewhat in contradiction to a comment in

relation to another response,

when a senior manager said:

“Our government is supporting the change and adopting the latest technology

available in the market and providing the entire basic infrastructure needed

for its adoption … our government provides the costs of importing hardware,

software, and expertise to promote and encourage the use of e-banking

technologies in many banks that cannot afford such costs”.

However, it is clear that the bank is ‘promoting and

encouraging’ rather than actually enforcing the

introduction of e-banking technologies, and it is obvious

from this that any national strategy is still to be

properly developed. Indeed, an IT manager is quoted as

saying:

“The banking industry in Tanzania is definitely looking at e-banking technology

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as a new, innovative and effective delivery channel improving banking

Services. However, at the same moment, the road ahead is not, as I see it, very

clear for the industry as a whole to make a top decision to go ahead with such

a strategy of implementing e-banking services. It looks to me like it takes some

time to clear the ambiguities”.

4.3.3.2 Technological dynamics, Competition and Diversity as

challenges in implementing modern technology

Respondents were asked their views on the assertion that

technological dynamics is a challenge when implementing

modern technology. Their responses are summarized in table

4.17 below

Table 4.17: Technological dynamics

Response Frequency Percent

Strongly agree 14 35.0

Agree 16 40.0

Neither agree nor

disagree8 20.0

Strongly disagree 2 5.0

Total 40 100.0

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Source: analyzed data (2011)

As shown in the table above, 35% of the respondents strongly

agreed that technology dynamics are more challenging and can

affect the adoption of new technology and thus

organizations’ performance significantly. Similarly, 40%

agreed on the same concept while only 20% of the respondents

neither nor disagreed with the concept that technology

dynamics can affect the adoption of modern technology and

another 5% strongly disagreed on this concept.

This implies that almost 75% of the respondents support the

view that technological dynamics is a challenge in adopting

modern technology. This is because technology is changing

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very fast and adoption of new technology requires big

investment and a lot of training to employees and customers.

Thus it becomes a bit challenging for most Organizations

Unavailability of Proper Telecommunications Infrastructure

This was raised by many interviewees as a crucial problem

deterring the advancement of modern technologies. The

interviews revealed that despite the many plans to enhance

the

country’s ICT infrastructure, many participants stated that

it is still deficient and integration between banks is poor.

Thus, the technological infrastructure in Tanzania is not up

to the level required to support the use of modern banking

technologies, and the comments from an ITmanager confirm

this:

“Our telecommunication infrastructure is still old and unreliable to meet the

requirement of e-banking system, therefore, without suitable

telecommunication systems, e-banking technology is very difficult to achieve”.

With regard to the lack of key resources, identified as the

next obstacle to the adoption and diffusion of e-banking

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technology, comments were made that essentially related to

Tanzania’s stage of development, which revealed a lack of

native expertise in e-banking technologies. The lack of

skilled local professionals in advanced modern technology

forces a reliance on expensive foreign expertise. As

participant (a bank manager) mentioned:

“Our country lacks the expertise in many modern technologies, which makes our

organisations depend fully on expensive foreign expertise, which creates financial

loads on many organizations”.

And another participant (IT manager) declared that:

“Our country depends mostly on local trainers who educated in IT aboard in

the 1980s and1990s and are not up-to- date with the latest technology”

The lack of reliability, pointed out by one of the

respondent and referred to earlier in this section, and the

problems in reliability also promoted concerns about

security which were found to be the most significant factor

affecting the rate of technology adoption in Tanzania. All

participants from all levels expressed great anxiety about

security issues such as potential fraudulent activities and

errors in conducting customer transactions. As another

respondent (a senior bank manager) said:

“The main concern that is associated with the use of banking technologies is

perceived security of the new banking technology, thus if this perception is

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overcome then we see no reason why our banks cannot provide full picture of

e-banking technology facilities in the future”.

Competition

Respondents were asked their views on the assertion that

competition is a challenge on when adopting a new

technology. Their views are summarized below in table 4.20.

Table 4.20: Competition

Response Frequency Percent

Strongly agree 8 20.0

Agree 28 70.0

Neither agree nor

disagree4 10.0

Total 40 100.0

Source: Field Data (2011)

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Source: analyzed data (2011)

The response in the table above indicates clearly that, 20%

of the respondents strongly agreed that competition among

firms both at national and international level can affect

the adoption of modern technology and organizations’

performance significantly. Similarly, 70% agreed on the same

concept while only 10% of the respondents neither agreed nor

disagreed with the concept

Thus, the researcher provides that almost 90% of the

respondents support the view that adoption of new technology

and organizations’ performance can also be affected by the

extent of competition in the target market. This can be due

to a reason that competition affects the stability of firms’

operations and therefore daily operations at all levels.

125

Thus, managements should pay attention on influencing the

competitors to act at least in a way that is not defeating

their work organizations’ operations and interest

particularly the private sector (Taylor, (2003).

However, this comment seems to show some ignorance since it

is not only the perception of poor security which causes the

problem, but also the fact that security measures are not up

to the standard required in the banking industry, so it is

not only the perception that has to be overcome, but the

flaws in the system. This understanding was clearly

expressed by those responsible for IT, as seen in the

response provided by an IT manager who said:

“Ensuring security and confidentiality are the fundamental prerequisites

before any banking activity involving sensitive information can take place”.

Concerns about the security of e-banking technologies were

also raised by bank

clerks. As one participant stated:

“Security and data confidentiality issues are the key issues in the adoption of

any technology based services in our bank, thus we are still not confident with

the new proposed technology systems as we feel that transactions conducted

electronically were open to hackers and viruses, which are beyond their

126

control”.

System Complexity

Identified as a significant issue for the development of e-

banking in Tanzania. All interviewees indicated that e-

banking systems is a complex and difficult innovation to

adopt. As respondent (IT manager) who is responsible for the

implementation of the e-banking project indicated that:

“I think, the perceived complexity in using e-banking systems is a key barrier to

adoption of e-banking projects.”

System Compatibility

The interviewees raised many questions about the

compatibility and integration of current

banking programs with the e-banking systems in their bank.

The following quote, from bank IT manager , gives a clear

view of this:

“The integration of our legacy systems with the banking systems has been a

difficult task. It requires more skilled staff, it is really difficult to achieve

coordination and integration between them”.

This compatibility issue is also most noticeable with the

clerks. As other respondent

pointed out that:

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“the innovation is not compatible with existing workflows, practices or habits,

we feel that even with the use of some e-banking systems , our daily banking

operations became more difficult than in the past”

4.3.3.3 Social cultural factor as a challenge in

implementing modern technology

Respondents were asked what their views are on the assertion

that social cultural factor is a challenge in implementation

of modern ICT.Their responses are as summarized n table

below

Table 4.18: Social Cultural Factors

Response Frequency Percent

Strongly agree 18 45.0

Agree 14 35.0

Neither agree nor

disagree8 20.0

Total 20 100.0

Source: Field Data (2011)

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Source: analyzed data (2011)

Results in the table above indicate clearly that, 45% of the

respondents strongly agreed that social cultural factor can

affect the adoption of modern technology significantly.

Similarly, 35% agreed on the same concept while only 20% of

the respondents neither nor disagreed with such concept.

This implies that, the researcher provides that almost 80%

of the respondents support the view that adoption of new

technology and hence organizations’ performance can be

affected by the social cultural factor. This can be due to a

reason that probably the social cultural factor determines

the stability of various social values that determines the

people’s attitude to the work as well as their way of

interaction in life and daily operations at various levels.

Thus, managements should pay attention on managing their

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organization in line with the social cultural factors so as

to attain the compatibility between the society and the work

organizations’ culture and operations at large(Gamba, 2003)

4.3.3.4 Legal factor as a challenge in implementation of

modern ICT

Respondents were asked their opinions on the concept that

legal factor is challenge when implementing modern ICT.

Their views are summarised in the table below

Table 4.19: Legal Factors

Response Frequency Percent

Strongly agree 10 25.0

Agree 28 70.0

Neither agree nor

disagree2 5.0

Total 40 100.0

Source: Field Data (2011)

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Source: analyzed data (2011)

Results shown in the table above shows that 25% of the

respondents strongly agreed that legal factors affect the

adoption of modern technology and thus performance

significantly. Similarly, 70% agreed on the same concept

while only 5% of the respondents neither agreed nor

disagreed with the concept.

Therefore, the researcher provides that almost 95% of the

respondents were in line with the view that adoption of

modern technology and thus organizations’ performance can be

affected by the legal factor. This can be due to a reason

that probably the legal factor determines the guidelines

that are to be adhered to by both organizations and people

in their daily operations at all levels. Therefore,

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managements should focus at managing their organization in

line with the legal cultural factors so as to attain the

compatibility between the guidelines provided and the work

organizations’ operations procedures (Tjosvold et al, 1995)

Lack of E-laws and Legislation

The unavailability of e-legislation was a main concern for

all bank staff. On this theme, other respondent (a bank IT

Manager) indicated his reservations saying:

“I’m very conservative when it comes to use electronic systems despite my

work and knowledge about IT and internet security. The problem is that the

system in Tanzania does not protect me yet, so I have to take care of my own

safety.”

Interestingly, further analysis of interviews revealed that

bank clerks (especially

female ones), as front end users, expressed great concern

about the absence of e-laws and elegislation for e-banking

in particular. As respondent (bank clerk) commented:

“if a financial transaction goes wrong as a result of input mistakes, without

legal protection, we will be in a difficult position”.

Accordingly, the study found that even within this small

segment of society, the absence e-legislation was seen as

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the main inhibitor to e-banking improvement in Tanzania. In

this regard, the development of proper e-legislation was

perceived as crucial to support the adoption of e-banking,

since the absence of this would inevitably inhibit and

discourage people and businesses from going online.

133

4.3.3.6 Human resource diversity as challenge when

implementing modern ICT

Respondents were asked on what are their views from the

assertion that adoption of modern ICT can be affected by

human resource diversity. Their responses are summarized

below in table 4.21

Table 4.21: Human resources diversity

Response Frequency Percent

Strongly agree 14 35.0

Agree 20 50.0

Neither agree nor

disagree6 15.0

Total 40 100.0

Source: Field Data (2011)

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Source: analyzed data (2011)

From the table above it can be seen that, 35% of the

respondents strongly agreed that human resources diversity

can affect the adoption of modern technology and

organizations’ performance significantly. Similarly, 50%

agreed on the same concept while only 15% of the respondents

neither agreed nor disagreed with the concept.

This implied that almost 85% of the respondents support the

view that adoption of modern technology and thus

organizations’ performance can also be affected by the human

resources diversity. Thus, managements should pay attention

on managing their organizations in line with the interests

of the social cultural values, this includes providing

training to new technology and prepare employees to accept

changes. Incentives to innovative ideas can also improve

positive attitude toward changing technology.

135

Senior management interviewees on the other hand, believed

that resistance to change from bank clerks was the main

barrier to the adoption of e-banking technology in Tanzania.

A clear example of this belief came from one participant (a

bank manger) who declared that:

“the majority of our bank tellers are relatively content with the way in which

the business is being operated, therefore for that reason they do not

particularly want the introduction of any new technology that would change

the way in which their daily activities are performed”.

The study revealed that ,Yet the workforce were of the

opinion that this was a result of top management’s own

resistance to change, primarily because they too were afraid

about whether they would maintain their current status under

a computerized system. Despite the anxieties identified by

senior management (resistance to change by clerks), IT

management (lack of awareness of technological complexities

by top management), and bank clerks (lack of personal

competence), all three types of staff were able to

appreciate the theoretically-positive features of e-banking,

and agreed that it had the potential to offer more

convenience to customers. One example of such understanding

came from an IT manager who stated:

“Using the technology is very beneficial for our banking system. It helps our

136

banks to conduct their activities more effectively and efficiently”.

CHAPTER FIVE

DISCUSSION OF THE FINDINGS

5.1 Discussion of the research findings on impact of modern

technology to the performance of financial service sector.

The study revealed that the application of information and

communication technology concepts, techniques, policies

and implementation strategies to banking services has

become a subject of fundamental importance and concerns to

all banks and indeed a prerequisite for local and global

competitiveness. ICT directly affects how managers decide,

how they plan and what products and services are offered

in the banking industry. It has continued to change the

way banks and their corporate relationships are organized

worldwide and the variety of innovative devices available

to enhance the speed and quality of service delivery.

Harold and Jeff (1995) contend that financial service

providers should modify their traditional operating

practices to remain viable in the 1990s and the decades

that follow.

137

The adoption of ICT in banks has improved customer services,

facilitated accurate records, provides for Home and Office

Banking services, ensures convenient business hour, prompt

and fair attention, and enhances faster services. The

adoption of ICT improves the banks’ image and leads to a

wider, faster and more efficient market. It has also made

work easier and more interesting, improves the competitive

edge of banks, improves relationship with customers and

assists in solving basic operational and planning problems.

(DeYoung, Robert 2007)

The findings revealed some evidence that there is a

relationship between the adoption of modern technology and

the performance of the financial service sector as follows

5.1.1. Discussion on Impact of technology on revenue

growth

The study showed that 20% of the respondents strongly agreed

that revenue growth can be enhanced by the adoption of a

modern technology. On the other hand, 55% agreed that the

adoption of a modern technology can strongly influence the

performance of the financial service sector hence revenue

growth as indicated by the respondents under this variable.

25% of the respondents neither agreed nor disagreed with

138

such concept in relation to the impact of a modern

technology on revenue growth of the financial services

sector.

Therefore, the researcher argues that almost 75% of the NBC

Staffs responded positively v that the adoption of the

modern technology by work organizations can enhance their

reasonable performance,that in turn leads to revenue growth

as reflected by the respondents under this variable. This

can be linked with the view that a modern technology can

simplify the process of performing the tasks and maximize

the chances for the human resources performing at a higher

level. Thus, delivering greater productivity to both

employees and organization (Otis, 2000)

Furthermore, existing studies have posted two positive

effects regarding the relation

Between modern technology and banks’revenue growth. First,

IT can reduce banks’ operational costs (the cost advantage).

For example, internet helps NBC to conduct standardized, low

value-added Transactions (e.g. bill payments, balance

inquiries, account transfer) through the online Channel,

while focusing their resources into specialized, high-value

added transactions (e.g. small business lending, personal

trust services, investment banking) through branches.

Second, IT can facilitate transactions among customers

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within the same network (the networkeffect)

(seeFarrellandSaloner, 1985; KatzandShapiro, 1985;

The study also found that technology selection has positive

impact on revenue growth. In other words, the higher the

value of selected technology, the higher its revenue growth.

High-value technologies can help the customers to create

products with significant cost and value advantages. The

value of technology selection shapes the roots of

competitiveness for an automation firm. If these high-value

technologies are difficult for competitors to imitate, it

will form the core technologies that provide distinctive

advantage to the firms. If a firm can sustain proprietary

advantage in its high-value core technologies, it will

continuously outperform its competitors and experience high

revenue growth.

This supports the literatures which state that core

technology is a fundamental concept in the formulation of a

technology strategy, which is critical to build the inner

strength of a strategy (Khalil, 2000). Also the findings are

consistent with the literature that says; company’s core

technology determines its competitiveness (Prahalad & Hamel,

1990; Burgelman & Rosenbloom, 1989).

5.1.2. Discussion of the research findings on how modern

technology can help to control queue

140

According to our findings the adoption of a modern

technology enhances the organizations’ performance

significantly. This is supported by the provision that a

modern technology synergizes the attainment of productivity.

Hence, delivering greater satisfaction and assured

responsiveness by all stakeholders (Jackson et al, 2003)

Furthermore, this study found that ICT can facilitate

transactions among customers within the same network

Farrell and Saloner, (1998); Katz and Shapiro, (1995);

Example the case of automated teller machines (ATMs) by

banks. If ATMs are largely available over geographically

dispersed areas of dare s salaam and other regions, the

benefit from using an ATM will increase since customers

will be able to access their bank accounts from any

geographic location they want (Milne 2006). This would

imply that the value of an ATM network increases with

the number of available ATM locations, and the value

of a bank’s network to a customer will be determined in

part by the final network size of the bank.

Furthermore Davis et al. (1989) also commented that the

successful implementation/adoption of any new technology

are principally determined by organizational users’

attitudes: employees and managers build up an attitude and

141

feeling about the new technology, and that feeling could

direct them to the adoption or rejection of the proposed

technology. Attitude can be a very powerful enabler or a

barrier towards the adoption of the new technology

5.1.3. Discussion of the research finding on Strategies for

optimum utilization of the modern ICT

i. ATM usage

According to our findings, almost 95% of the respondents

supported the view that the use of ATMs is one of the

strategies to ensure utilization of modern ICT by Financial

Institutions. Furthermore the study showed that all the NBC

branches are computerized and linked by network

Other scholars also commented the same as follows The use

of electronic banking technologies (e-banking) such as

Automated Teller Machines (ATMs), Tele-banking, home banking

and internet banking, in the delivery of bankingproducts and

services has increasingly become an essential aspect of

contemporary bankingsystems (Mols, 1998), because banking

services are informational (Bradley and Stewart, 2002) and

can be easily automated and digitized (Porter and Millar,

1985). Most banksconsider the adoption of e-banking

142

technology as a means to improve efficiency andperformance,

and service quality (Robinson, 2000).

ii. Employee training and development

The study revealed that, 80% % of the NBC workers strongly

agreed that employee training and development can enhance

the use of modern technology and thus increase organization

performance significantly. On the other hand, 10% of the

respondents neither agreed nor disagreed with such argument

while another 10% of the respondents strongly disagreed on

the usefulness of this concept in enhancing the utilization

of modern technology.

For this case, the researcher provides that almost 80% of

the respondents had the view that employees training and

development in relation to the use of a modern technology

can strongly enhance the organizations’ performance. This is

probably because the context results in performance

improvement and an appropriate time management (Jackson et

al, 2003)

Early technology adoption and diffusion literature (see

Rogers, 1983; Davis, 1985; Davis et al., 1989; Ajzen,

1985; Moore and Benbasat, 1991; Sathye, 1999; Tan and Teo,

2000; Karjaluoto et al., 2002) argues that user attitude

143

is the key determinant of technology adoption. However,

factors such as innovation characteristics (e.g. perceived

usefulness and ease of use, compatibility, reliability,

security), organisational and managerial characteristics

(e.g., leadership characteristics, fear of loss of

autonomy, fear of security breach), and facilitating

conditions (e.g. availability of government support and

availability of top management support) have been found as

the key influential factors affecting users’ attitude

towards adopting the proposed technological system.

iii customer training

The study revealed that 55% of the respondents strongly

agreed that reasonable customers training on the use of

various self services in a modern technology context ensures

optimum utilization of modern ICT and thus can enhance the

organizations’ performance and deliver an optimum

satisfaction to both customers and organizations. Similarly,

30% of the respondents agreed with this aspect. On the other

hand, 10% of the respondents neither agreed nor disagreed

with such argument while another 5% of the respondents

strongly disagreed on the usefulness of this concept in

improving the organizations performance.

For this case, the researcher provides that almost 80% of

the respondents had the view that the reasonable customers

144

training in a modern technology context can improve the

organizations’ performance. This is probably because

adopting the maximum training of customers on the use of

self services options of accessing banking services like

ATMs, Internet banking and mobile banking can cut down the

operations costs and increase the productivity (Taylor,

2003)

Absence of user involvement, lack of an understanding,

technical difficulties, lack of training, and insufficient

support from top management and perceived complexity, are

considered as the main causes of user resistance (Manross

and Rice, 1986; Chen, 1999; Liao et al., 1999).

iv.The usefulness of computers

The study revealed that, 50% of the respondents strongly

agreed that a reasonable use of computers by employees at

work place can be an indicator of optimum utilization of

modern technology. Similarly, 35% of the respondents agreed

on the same concept. On the other hand, 10% of the

respondents neither agreed nor disagreed with such argument

while another 5% of the respondents strongly disagreed on

the usefulness of this concept in ensuring maximum

utilization of modern technology and thus influencing the

organizations’ performance.

145

For this case, the researcher provides that almost 85% of

the respondents had the view that the reasonable use of

computers by employees strongly indicates the organizations’

state of use of the modern organization. This is probably

because it increases the service rate by simplifying work

thus motivating employees to use the technology

v. qualification of employee

The study revealed that 15% of the respondents strongly

agreed that employees’ qualifications can influence the

adoption of a modern technology. On the other hand, 70%

agreed on the same bases while only 15% of the respondents

neither nor disagreed with this context.

Therefore, the researcher provided that almost 85% of the

respondents support the view that employees’ qualifications

and the use of a modern technology goes hand in hand. This

can be due to a reason that highly qualified employees can

learn to use technology easily and be flexible to changes

(Feidman, 2005)

.

5.1.4.Discussion of the research findings on the challenges

in implementing the Modern ICT Concept.

146

The research question number three thought to determine the

challenges which organizations face when implementing modern

ICT The respondents were asked to indicate the most

appropriate challenge that they thought that it contributes

to the difficulties in implementing ICT.

i.Political factor

According to the study findings 10% of the respondents

strongly agreed that political factors both at national and

firm level are more challenging and can affect the

implementation of modern ICT. Similarly, 55% agreed on the

same concept while only 35% of the respondents neither

agreed nor disagreed with the challenges caused by this

concept in implementation of modern ICT.

This implies that almost 65% of NBC staffs support the view

that political factor is more challenging and can affect the

organizations’ adoption of new technology. This can be due

to a reason that probably the political factor determines

the stability of various aspects in the people and

organizations’ life and therefore daily operations at all

levels. Thus, organizations’ management should pay attention

on the political.

Furthermore other researchers have contributed that The

perceptions and attitudes of a political system greatly

147

affect the acceptance and growth of technology in any

society. The same holds true for all the ICTs relevant to

banking industries. A political system conscious of the

payoffs of ICT for the enhancement of the business profile

of a country will frame appropriate policies for the

adoption and dissemination of ICT throughout the length

and breadth of the country. ICT should always be selected

in accordance with its end result that is the extent to

which it can bring about positive pedagogic out comes.

The word is moving towards democracy. This form of social

contact is definition based on the flow of information

that is frelly and easily accessible the citizens of the

country in question. The growth of ICTs will be generally

welcomed in a democratic society, because, ICTs are known

to democratize societies through wider dissemination of

information. However, in a society in which an autocratic

form of government prevails, growth of ICTs may not be

viewed with favour because, greater access to information

may encourage interest in creating more democratic space

in the society (Guy 1991, 162)..

ii.Technological dynamics

According to the study findings, 35% of the respondents

strongly agreed that technology dynamics are more

148

challenging and can affect the adoption of new technology

and thus organizations’ performance significantly.

Similarly, 40% agreed on the same concept while only 20% of

the respondents neither nor disagreed with the concept that

technology dynamics can affect the adoption of modern

technology and another 5% strongly disagreed on this

concept.

This implies that almost 75% of the respondents support the

view that technological dynamics is a challenge in adopting

modern technology. This is because technology is changing

very fast and adoption of new technology requires big

investment and a lot of training to employees and customers.

Thus it becomes a bit challenging for most Organizations

149

iii. Social cultural

According to the study findings, 45% of the respondents

strongly agreed that social cultural factor can affect the

adoption of modern technology significantly. Similarly, 35%

agreed on the same concept while only 20% of the respondents

neither nor disagreed with such concept.

This implies that, the researcher provides that almost 80%

of the NBC Staffs support the view that adoption of new

technology and hence organizations’ performance can be

affected by the social cultural factor. This can be due to a

reason that probably the social cultural factor determines

the stability of various social values that determines the

people’s attitude to the work as well as their way of

interaction in life and daily operations at various levels.

Thus, managements should pay attention on managing their

organization in line with the social cultural factors so as

to attain the compatibility between the society and the work

organizations’ culture and operations at large(Gamba, 2003)

Numerous researchers support the importance of

understanding a culture and ways of learning, before

implementing a solution: Ong (1982, as cited in Murphy

1991b) reports that Turkey’s roots in an oral tradition,

along with its emphasis on rote memorization and the

sacredness of text, make independent textbook learning

150

less suitable. Ong suggests that "those who live in

cultures with strong oral roots are [more] likely to

express themselves in terms of practical situations rather

[than] in abstract terms". These types of learners are

doomed to failure in unstructured environments.

Understanding the sociocultural context is key to

developing appropriate support systems for business

performance. In her study of the sociocultural context of

Turkish distance learning, Murphy (199la, 225) observes

that "two elements of the Turkish culture - patronage and

an oral tradition seem to play a significant role in

distance learning even in modern Turkey.” Patronage

systems which foster values of obedience, honor, and

respect for authority, are evident in Turkey's educational

system through students' respect and loyalty toward their

professor and bonds of friendship and mutual assistance

among classmates. She further observes that Turkey's roots

in an oral tradition imply that people are likely to

express themselves in terms of practical situations rather

than in abstract terms.

Moreover, in another study of values in Turkey (Imamoglu &

Karakitapoglu ,1999), university students' value

orientations in the 1990s included sociocultural

normative, comfort-social recognition, love-peace, wisdom,

151

stimulation-challenge, autonomy, arid self-respect-

achievement orientations pointing to the existence of both

individual and group-related concerns. In accordance with

such studies, one might expect Turkish people to retain

their conservation and self-transcendence-related values

but, at the same time, to assume more individualistic,

achievement, and self-enhancement concerns.

iv. Legal factor

According to the study findings, 25% of the respondents

strongly agreed that legal factors affect the adoption of

modern technology and thus performance significantly.

Similarly, 70% agreed on the same concept while only 5% of

the respondents neither agreed nor disagreed with the

concept.

Therefore, the researcher provides that almost 95% of the

respondents were in line with the view that adoption of

modern technology and thus organizations’ performance can be

affected by the legal factor. This can be due to a reason

that probably the legal factor determines the guidelines

that are to be adhered to by both organizations and people

in their daily operations at all levels. Therefore,

managements should focus at managing their organization in

line with the legal cultural factors so as to attain the

compatibility between the guidelines provided and the work

organizations’ operations procedures (Tjosvold et al, 1995)

152

153

v.Competition

According to the study findings, 20% of the respondents

strongly agreed that competition among firms both at

national and international level can affect the adoption of

modern technology and organizations’ performance

significantly. Similarly, 70% agreed on the same concept

while only 10% of the respondents neither agreed nor

disagreed with the concept

Thus, the researcher provides that almost 90% of the

respondents support the view that adoption of new technology

and organizations’ performance can also be affected by the

extent of competition in the target market. This can be due

to a reason that competition affects the stability of firms’

operations and therefore daily operations at all levels.

Thus, managements should pay attention on influencing the

competitors to act at least in a way that is not defeating

their work organizations’ operations and interest

particularly the private sector (Taylor, (2003).

154

CHAPTER SIX

SUMMARY, CONCLUSION AND RECOMMENDATIONS

6.1 Introduction

This last chapter will provide details related to the

summary and conclusion of the study as well as the

recommendations that may be useful to the Financial Service

sector with regard to the use of modern ICT in improving

performance of their organizations.

6.2 Summary

The study aimed at investigating the impact of modern

Technology to the performance of the financial Service

Sector.

More specifically it aimed at investigating the relationship

between the adoption of modern technology and Organization

performance, the strategic roles that organization

management uses to enhance optimum utilization of the modern

ICT and last the challenges faced by Organization’s

management in implementing the same.

In an attempt to attain the objective of this study three

research questions were set by the researcher and

155

questionnaires were also prepared accordingly which was used

to collect data from primary source. The analysis of such

data were made in chapter four which helped the researcher

to reach a conclusion of this study as presented in the next

section.

6.3 Conclusion

The financial service sector is growing at a very high rate

each day competition becomes more intense, for this reason

the use of modern ICT by the Organizations’ is

indispensable.

The researcher explored some of the guidelines which if

followed by Organizations, the result will obvious be the

tremendous performance.

Based on the findings of this study, there is a relationship

between the adoption of modern technology and the

performance of the financial service sector as almost 80% of

the respondents agreed on the variable set as the indicators

of such relationship. Thus it roved that there really is a

need to use modern ICT to improve performance.

The researcher also tried to look at the current strategies

used by the Organization to ensure optimum utilization of

modern technology so as to get maximum productivity and the

challenges faced when implementing the same.

156

Therefore researcher provides that the adoption of a modern

technology by work organizations have significant role in

influencing the organizations’ performance and the

managements of organizations should maintain a state of

innovation in order to attain a competitive scope in

adopting and implementing a modern technology for the

benefit of the organization and other stakeholders.

Bank staff perception of and expectations towards banking

technologies are a crucial element in the development of

successful e-banking implementation projects

(Lymperopoulos and Chaniotakis, 2004). If bank staff

primarily consider e-banking as a self-service and

convenient channel that decrease costs and if its adoption

will not affect their positions, then they will adopt it

(Nath et al., 2001).

However, if they perceive e-banking as a threat to their

job prospects and a way to lose customers, then they will

be likely to resist its adoption to keep customers in the

branches and their jobs (Mols, 2001). Bank staff

resistance to technology adoption is a common problem in

the banking sector (Chan and Lu, 2004; Constantine and

Chaniotakis, 2005). Davis et al. (1989) argue that the

introduction of new technology is bound to cause a

157

disturbance within organizations and to individuals within

those organizations as older technologies and systems are

displaced by new ones. Davis et al. (1989) also state that

the successful implementation/adoption of any new

technology are principally determined by organizational

users’ attitudes: employees and managers build up an

attitude and feeling about the new technology, and that

feeling could direct them to the adoption or rejection of

the proposed technology. Attitude can be a very powerful

enabler or a barrier towards the adoption of the new

technology. Ajzen and Fishbein (1980) defines the term

‘attitude’ as a complex conundrum of feelings, desires and

fears that create a state of readiness to act within a

person. Understanding users’ attitude towards the adoption

of new technologies has proved to be one of the most

challenging issues in technology adoption literature (Tan

and Teo, 2000). Early technology adoption and diffusion

literature (see Rogers, 1983; Davis, 1985; Davis et al.,

1989; Ajzen, 1985; Moore and Benbasat, 1991; Sathye, 1999;

Tan and Teo, 2000; Karjaluoto et al., 2002) argues that

user attitude is the key determinant of technology

adoption.

However, factors such as innovation characteristics (e.g.

perceived usefulness and ease of use, compatibility,

reliability, security), organisational and managerial

158

characteristics (e.g., leadership characteristics, fear of

loss of autonomy, fear of security breach), and

facilitating conditions (e.g. availability of government

support and availability of top management support) have

been found as the key influential factors affecting users’

attitude towards adopting the proposed technological

system. Liao et al. (1999) argue that targeted users may

reject the new technologies for several reasons. Absence

of user involvement, lack of an understanding, technical

difficulties, lack of training, and insufficient support

from top management and perceived complexity, are

considered as the main causes of user resistance (Manross

and Rice, 1986; Chen, 1999; Liao et al., 1999).

6.4 Recommendations

Based on the findings and conclusion of the study, the

researcher provided recommendations in line with the

research objectives and general observations. In the light

of the above findings, there is a clear need for

understanding the factors affecting NBC bank staff attitude

towards banking technologies, if successful implementation

of ebanking technology is to be gained. It was found that

NBC bank staffs are happy to adopt and implement

technological alternatives to traditional manual procedures

159

if they find the new process to be easy to use and help them

accomplish their work tasks effectively. The However, it was

apparent that almost all participants, whether from a

technical or a nontechnical background, were fully in

agreement concerning the factors put to them by the

researcher (as identified in the literature) as being either

enablers or barriers. As a result, based on the interviews

conducted, this study suggests that in order to successfully

introduce e-banking in Tanzania banks, the following

strategies are recommended:

Increasing of bank staff awareness of modern banking

technologies through various communication channels

(e.g. conferences and workshops).

The provision of manuals about how to use the new

technology for every department. This was perceived

to be essential because staff felt there was

insufficient time available for them to attend every

training session.

Improving the existing telecommunications

infrastructure at the local and national level

160

Increasing the level and process of IT training (e.g.

courses on IT languages). This is believed to be

vital because the experience of IT training

programmes so far was that they were pitched at too

low a level to prepare staff for the more complex

procedures they had to manage with e-banking

technologies.

Making use of ‘pioneers’ within the bank and using

them as role models for others to follow. This was

raised as a key support in the adoption of e-banking

systems, since social networking has a greater

cultural base in Tanzania than in western countries,

and hence a recommendation from one colleague to

another regarding the usefulness of a particular

process, can be more powerful than in other

countries.

Thus, the creation of an enabling environment clearly

demands that management pay attention to the range of

variables identified in the literature and to these

additional factors. That being said, it is not only

sufficient to merely consider these factors but also to

introduce mechanisms to ensure that proper training is

161

provided, ensure that the technology is user friendly, and

secure, and that senior management become more

knowledgeable about both the technology and the types of

additional support required by the workforce. Finally

there’s a need for considerable efforts to set the

priorities for implementation. More work is needed to

provide better understanding of the difficulties of

implementation. These findings are merely the start; they

must be used to develop an adoption framework or to arrive

at lessons and recommendations that will improve the state

of ICT in the NBC banking industry.

6.4.1 Relation between the use of modern technology and

organization performance

The study indicated that there exists a relationship between

the adoption of modern ICT and Organization’s performance

since technology provide room for customers to participate

in improving service. This contributes to increase in

customer trust to organization as they see themselves as

part of it. Thus the researcher suggests that organizations

should equip employees through training, customer

orientation, and encouraging strategic partnerships.

6.4.2 Strategies for optimum utilization of Modern ICT

162

It was seen from the research findings that Organizations’

are striving to achieve higher performance through the use

of modern technology, the adoption can lead to controlling

queue as customers can access their accounts without

necessarily entering in the bank through ATMs or internet

banking, growth in revenue due to increasing customer base

and increasing market share. Therefore the researcher

suggests that financial institutions should stress on

improving their application of modern technology through

encouraging innovation and R&D within the organization as a

result it will lead to improved work process.

6.4.3 Challenges facing organization management in

implementing the modern ICT

Though ICT has been proven to improve performance in the

financial service sector it faces challenges which needs to

be addressed so as attain maximum performance out of it. The

researcher suggests that firms should be up to date in

adopting appropriate technology so as to beat their

competitors, attention should be paid to managing the

workforce diversity and organizations should have the

culture of promoting the use of modern technology that is

encourage innovation and invention.

163

6.5 Suggestions for the dissertation in Future Research

This study was done in a case study approach, a state that

limits its potential for generalization of the findings. In

future either of the following can be done; First, another

study of similar nature should be done using survey

approach, Secondly, researchers should undertake a

comparative study. Last but not least, because this study

was done for academic purposes, researchers should undertake

similar studies for other purposes namely; entrepreneurship

development and organizations’ performance management.

6.6 Limitations of the study and Areas for further

research

Despite the contributions made by this study, several

limitations were encountered. Due to the small budget and

limitation of time the researcher decided to use only one

study area which is NBC dare s salaam branches. Also there

was a slow pace of getting responses from the participants

which forced the researcher to extend time for data

collection, as well as incurring additional communication

costs of phoning the respondents and requesting them to

fill in and return questionnaires. Because of the

researcher’s efforts, he managed to receive a good number

of questionnaires.

164

It is the researcher’s opinion that there is a need to

conduct comparative studies which will compare this

problem in the public and private sector in the future. In

addition, further studies could be carried out in relation

to the distance from work to home for staff, evaluating

the time taken and the means of transport to and from

work. Moreover, an evaluation could be carried out on the

working conditions of staff, as well as management

initiatives to improve workers’ working environment.

Lastly, recruitment mechanisms used and the staff’s skills

in relation to the work they perform could be studied.

Lastly a number of the studies have been conducted in

Africa and other parts of the world, describing impact of

modern ICT development to the financial service sector

performance but the researcher failed to get literature on

this topic which describes the situation in Tanzania. This

caused the researcher to believe that very few studies on

the problem this study looked at have been done and

documented in Tanzania. This shows the importance of

conducting an in-depth study to understand the magnitude

of the problem, the findings of which will result in

influencing policy changes in the country.

165

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QUESTIONNAIRE

I. The Respondent’s Information;

This part intends to collect information related to the

respondent in particulars. They are of significant

importance for future contacts.

1. Name …………………………………………………………………………………

2. Gender / Sex.……………………………………………………………………………

3. Age………………………………………………………………………………………

4. Tribe…………………………………………………………………………………….

3. Contact Address…………………………………………………………………………

4. Telephone (Land line)………………………… (Mobile)………………………………

5. E – Mail Addresses…………………………………………………………………….

6. Occupation…………………………..…………………………………………………

7. Highest level of Education Attained (Tick where appropriate)

(i) Primary Education………………………………………………………….

(ii) Secondary education………………………………………………………..

(iii) College Education…………………………………………………………..

(iv) University Education (Undergraduate)

…………………………………….

(v) Others (Specify)…………………………………………………………....

II The context that studies the relationships between the

adoption of modern ICT concepts and organization’s

performance:

Out of the following factors indicate the ones you think are

likely to influence your relation with the National Bank of

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Commerce. Based on the above explanation, you are

requested to tick in a cell that corresponds with your

variable of choice.

Note

that:

1; Strongly Agree

2; Agree

3; Neither Agree nor Disagree

4; Disagree

5; Strongly Disagree

VARIABLE 1 2 3 4 5Customers orientationRevenue growthControlled queueCustomer participationWork processNature of customerWorking hours

III The context that studies the challenges facing

Organization’s management in implementing the modern ICT

concept:

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Below are the challenges facing Organization’s management in

implementing the modern ICT concepts.

Note that:

1; Strongly Agree

2; Agree

3; Neither Agree nor Disagree

4; Disagree

5; Strongly Disagree

VARIABLE 1 2 3 4 5Political factorsTechnological dynamicsSocial cultural factorsLegal factorsCompetitionHuman resources diversity

IV The context that studies the strategies that can enhance

the improvement of the safe blood donation initiatives:

The following are the strategic roles of organization’s

managements that are used to enhance an optimum utilization

of the modern ICT.

Note that:

1; Strongly Agree

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2; Agree

3; Neither Agree nor Disagree

4; Disagree

5; Strongly Disagree

VARIABLE 1 2 3 4 5Automated Teller Machines usesResearch and Development

conceptCorporate downsizingEmployees Training and

developmentCustomers’ trainingComputer usesQualifications of employees

THANK YOU FOR YOUR VOLUNTARY PARTICIPATION

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