Does Information Technology Infrastructure Flexibility Moderate the Relationship between Technological Innovation and Firm Performance in Nigerian Banks?

Abstract

This paper examines the moderating effect of Information Technology infrastructure flexibility on the relationship between Technological innovations and organizational performance of banks in Nigeria. Cross-section survey research design was adopted in the study. The population of the study consists of 172 management staff of the Deposit Money Banks, and 155 were selected as the sample size of the survey. After collecting the required data, it was subjected to screening of outliers and other diagnostic tests. Factor analysis was carried out to reduce the dimensionality of the data set. Reliability and validity study was conducted to validate the adapted measurement scale and instruments. Regression was used in analyzing the data. The result reveals that Information Technology infrastructure flexibility moderate the relationship between Technological innovations and organizational performance regarding zero error operational processes and customers satisfaction in branches. This study found that Information Technology infrastructure flexibility is a quasi-moderator on the relationship between Technological innovations and organizational performance. Therefore, managers should pay attention to Information Technology infrastructures that are flexible to achieve superior performance over time. Policy makers should include public enlightenment on the need to link Information Technology investments to business strategies in addition to policy making.