{"title":"Peer Pressure, Information Technology Adoption, and Bank Performance","authors":"Md Al Mamun, M. Malik, Md. Abdul Hannan Mia","doi":"10.22452/ajba.vol16no1.6","DOIUrl":null,"url":null,"abstract":"Manuscript type: Research paper Research aims: The study examines cross-sectional dependence among banks to invest in information technology-related assets. We also analyse the short- and long-term impacts of information technology (IT) adoption on banks’ profitability and the variations in effects between early and late adopters. Design/Methodology/Approach: The study uses autoregressive distributed lag (ARDL) with dynamic fixed approach, standard fixed-effect ordinary least square and random effect model with double clustering regressions. Research findings: The study finds a positive effect of peer pressure on a bank’s investment in IT assets. It also documents that IT adoption reduces short-term profitability, but the joint effect of early adoption increases both short- and long-term profitability. Theoretical contribution/Originality: The study contributes to the banking and technology adoption literature by showing the evidence on a positive and significant effect of peer pressure on IT adoption. Practitioner/Policy implications: The findings are significant for the banking sector’s policy makers in emerging economies. Research limitation: The findings may not be applicable in the context of a developed economy with a strong IT infrastructure.","PeriodicalId":54083,"journal":{"name":"Asian Journal of Business and Accounting","volume":" ","pages":""},"PeriodicalIF":0.8000,"publicationDate":"2023-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asian Journal of Business and Accounting","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.22452/ajba.vol16no1.6","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Manuscript type: Research paper Research aims: The study examines cross-sectional dependence among banks to invest in information technology-related assets. We also analyse the short- and long-term impacts of information technology (IT) adoption on banks’ profitability and the variations in effects between early and late adopters. Design/Methodology/Approach: The study uses autoregressive distributed lag (ARDL) with dynamic fixed approach, standard fixed-effect ordinary least square and random effect model with double clustering regressions. Research findings: The study finds a positive effect of peer pressure on a bank’s investment in IT assets. It also documents that IT adoption reduces short-term profitability, but the joint effect of early adoption increases both short- and long-term profitability. Theoretical contribution/Originality: The study contributes to the banking and technology adoption literature by showing the evidence on a positive and significant effect of peer pressure on IT adoption. Practitioner/Policy implications: The findings are significant for the banking sector’s policy makers in emerging economies. Research limitation: The findings may not be applicable in the context of a developed economy with a strong IT infrastructure.
期刊介绍:
An academic journal that aims to advance knowledge in the business and accounting disciplines, to narrow the gap between theory and practice, and to set direction for policy initiatives in Asia. Welcome to the Asian Journal of Business and Accounting (AJBA). AJBA is an international refereed journal, published biannually (30th June and 30th December) by the Faculty of Business and Accountancy, University of Malaya, Malaysia. AJBA aims to publish scholarly business researches that are relevant to Malaysia and the Asian region. It intends to highlight the practical implications in promoting better business decision making process and the formulation of public policy in Asia. This journal publishes theoretical, conceptual, and empirical papers within the broad areas of business and accounting in Asia. The AJBA covers a broad spectrum of the business and accounting disciplines. A suggestive (though not necessarily comprehensive) list of areas that would be included in this journal are: general management, strategic management, human resource management, organizational behaviour, labour and industrial relations, international business management, business communication, entrepreneurship, leadership, management science, operations management, production management, supply chain management, marketing management, brand management, consumer behaviour, information management, e-marketing, e-commerce, quality management, retailing, service marketing, hospitality management, hotel and tourism management, asset pricing, capital and money markets, corporate finance, derivatives markets, finance and banking, financial economics, etc.