An Exploration of IT Resource Allocation and Its Effect on Organizational Performance: A Study of Banks in Katsina State
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Background of the Study
Efficient allocation of IT resources is pivotal for enhancing organizational performance. IT resource allocation involves distributing technology assets, including hardware, software, human expertise, and financial resources, to achieve strategic business goals (Eze & Musa, 2024). In the banking sector, proper IT resource allocation supports customer service delivery, improves transaction efficiency, and strengthens data security.
In Katsina State, banks face challenges such as limited budgets, inadequate IT infrastructure, and skill shortages, all of which impact resource allocation. With the increasing reliance on digital banking, the effective utilization of IT resources has become essential for maintaining competitiveness and ensuring customer satisfaction (Usman et al., 2025).
This study investigates how IT resource allocation affects organizational performance in banks within Katsina State, identifying best practices and areas for improvement.
Statement of the Problem
Despite significant investments in IT resources, many banks in Katsina State fail to achieve optimal performance due to poor allocation strategies. Issues such as underutilization of resources, mismatched priorities, and lack of skilled personnel contribute to inefficiencies (Abdullahi & Ahmed, 2023). These problems hinder banks’ ability to innovate and adapt to changing customer demands.
This study aims to analyze the relationship between IT resource allocation and organizational performance, offering insights into effective allocation strategies.
Objectives of the Study
1. To examine the current practices of IT resource allocation in banks in Katsina State.
2. To assess the impact of IT resource allocation on organizational performance.
3. To identify challenges faced by banks in allocating IT resources effectively.
Research Questions
1. What are the current practices of IT resource allocation in banks in Katsina State?
2. How does IT resource allocation affect organizational performance?
3. What challenges do banks face in IT resource allocation?
Research Hypotheses
1. H₀: IT resource allocation does not significantly influence organizational performance.
2. H₀: Current IT resource allocation practices do not adequately support operational efficiency.
3. H₀: Challenges in IT resource allocation do not significantly affect banks' performance.
Scope and Limitations of the Study
The study focuses on banks in Katsina State, examining IT resource allocation strategies and their effect on performance. Limitations include variations in bank size and the potential reluctance of respondents to disclose sensitive information.
Definitions of Terms
IT Resource Allocation: The distribution of technology-related assets to achieve organizational goals.
Organizational Performance: The efficiency and effectiveness of an organization in achieving its objectives.
Banking Sector: Financial institutions that provide banking services such as loans, deposits, and fund management.
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