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Impact Of Investment In Information And Communication Technology On Performance And Growth Of Microfinance Institutions In Uganda

Author

Listed:
  • Moya MUSA
  • Robinah AKODO
  • Monica MUKOOZA
  • Aloyce R. KALIBA
  • Victor W. MBARIKA

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.

Suggested Citation

  • Moya MUSA & Robinah AKODO & Monica MUKOOZA & Aloyce R. KALIBA & Victor W. MBARIKA, 2012. "Impact Of Investment In Information And Communication Technology On Performance And Growth Of Microfinance Institutions In Uganda," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 12(2).
    • Handle: RePEc:eaa:aeinde:v:12:y:2012:i:2_11
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    References listed on IDEAS

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    1. Hermes, Niels & Lensink, Robert & Meesters, Aljar, 2011. "Outreach and Efficiency of Microfinance Institutions," World Development, Elsevier, vol. 39(6), pages 938-948, June.
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    4. repec:dgr:rugsom:08002 is not listed on IDEAS
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    Citations

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    Cited by:

    1. Olasupo, Musa A. & Afolami, Caroline A. & Shittu, Adebayo M. & Agboola, A.A.A., 2014. "Performance and productivity changes in microfinance banks in South-West Nigeria," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(3), pages 1-13, December.
    2. Abidemi C. Adegboye*, 2023. "Financial Market Environment And Efficiency Of Microfinance Banks In Nigerial," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 10(1), pages 1-14.

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    Keywords

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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