IMPACT OF INVESTMENT IN INFORMATION AND COMMUNICATION TECHNOLOGY ON PERFORMANCE AND GROWTH OF MICROFINANCE INSTITUTIONS IN UGANDA

Musa Moya, Robinah Akodo, Monica Mukooza, Aloyce R. Kaliba and Victor W. Mbarika

Applied Econometrics and International Development, 2012, vol. 12, issue 2

Abstract: This study assesses the impact of investment in information and communication technology on performance and growth of microfinance institution in Uganda. Performance is measured as a change in total factor productivity and growth as change in scale of operation. Two level growth models were used to determine the impact of investment in information and communication technologies on total factor productivity and scale change trajectories of individual microfinance firms. Results indicate that about 18% variation in performance and 19% variation in growth across firms were due to investment in information and communication technologies. The shrinking customer base, decreasing marginal returns, and increased competition are necessitating selecting optimal input-mix and investment in information and communication technology by microfinance institutions in Uganda. This will ensure providing service at lower cost and sustainability and microfinance institutions in Uganda.

Keywords: DEA; ICT; Investment; Malmquist Index; Microfinance; Uganda. (search for similar items in EconPapers)
JEL-codes: C23 L86 O14 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.usc.es/economet/reviews/aeid12211.pdf
No.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eaa:aeinde:v:12:y:2012:i:2_11

Ordering information: This journal article can be ordered from
http://www.usc.es/economet/info.htm

Access Statistics for this article

More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development
Bibliographic data for series maintained by M. Carmen Guisan ().