An Evaluation of IT Investment and Business Performance: A Case Study of Telecom Companies in Plateau State
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Background of the Study
Information technology (IT) investments have become a critical driver of business performance, particularly in the telecom industry, where rapid technological advancements and intense competition define the landscape. Effective IT investment can enhance service delivery, improve customer satisfaction, and foster innovation. According to Okon and Ibanga (2024), telecom companies that strategically invest in IT infrastructure tend to outperform their peers in terms of market share and profitability.
In Plateau State, telecom companies are increasingly focusing on IT investments to address challenges such as network expansion, customer service improvement, and regulatory compliance. However, the relationship between IT investment and business performance remains underexplored in this context, highlighting the need for empirical studies to evaluate the effectiveness of such investments (Adamu & Yakubu, 2025).
Statement of the Problem
Despite significant IT investments, many telecom companies in Plateau State struggle to translate these investments into measurable business performance improvements. Factors such as poor implementation strategies, inadequate training, and misalignment between IT initiatives and organizational goals often limit the effectiveness of IT investments.
Objectives of the Study
- To assess the relationship between IT investment and business performance in telecom companies in Plateau State.
- To identify the challenges associated with IT investments in the telecom sector.
- To evaluate the impact of IT investments on customer satisfaction and operational efficiency.
Research Questions
- What is the relationship between IT investment and business performance in telecom companies in Plateau State?
- What challenges do telecom companies face in IT investments?
- How do IT investments influence customer satisfaction and operational efficiency?
Research Hypotheses
- IT investment does not significantly influence business performance in telecom companies in Plateau State.
- Challenges associated with IT investments do not significantly affect their effectiveness.
- IT investments do not significantly improve customer satisfaction and operational efficiency.
Scope and Limitations of the Study
This study examines IT investments in telecom companies operating in Plateau State between 2023 and 2025. Limitations include access to proprietary data and variations in IT investment strategies among companies.
Definitions of Terms
IT Investment: Allocation of resources to acquire, develop, or maintain IT infrastructure and systems.
Business Performance: The ability of an organization to achieve its objectives effectively and efficiently.
Customer Satisfaction: The degree to which customers are happy with the products or services provided.
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