E-Learning Investment Risk Management

The framework of neoclassical growth accounting is widely used to estimate the impact of investments in information and communication technologies (ICT) on the macroeconomic bottom line. Results of multiple investigations presented evidence that investments in ICT have a positive impact on such measure of macroeconomic outcome as gross domestic product. Thus, it is not surprising that less developed countries of the world often turn to investments to ICT as one of the sources of a sustained economic development. But sustainability of economic growth is predicated on the sustainability of the sources of growth, such as investment capital and labor. The question of how annual investments in ICT are sustained is an important one, and yet it was not given much research consideration. This is, in part, due to the absence of a theoretically sound framework outlining mechanisms of investments → outcomes → reinvestments process. In this study, we synthesize a consistent with the framework of neoclassical growth accounting model allowing for investigating the process by which various microeconomic outcomes of investments in ICT are associated with re-investments in ICT. We test the proposed model using techniques of structural equation modeling with the data on investments in telecoms (a common subset of investments in ICT) in the context of transition economies. The results of the investigation support the notion of cyclical relationship between investments in ICT and economic outcomes [Qureshi, S. (2013). What is the role of mobile phones in bringing about growth? Information Technology for Development, 19(1), 1–4] and offer valuable insights to decision- and policy-makers tasked with the responsibility of improving the impact of investments in ICT.

This study investigates the effects of information and communications technology (ICT) on economic growth.Our study focuses on 16 MENA countries from 1995 to 2018.We examine not only the impact of ICT usage and investment but also the moderating role of the quality of national institutions shaping this relationship.The results obtained using the panel ARDL method suggest that while ICT usage drives economic growth, ICT investment alone has a limited effect.Moreover, our research confirms that higher-quality institutions boost the impact of ICT use and investment on economic expansion.These results are essential for policymakers who want to boost ICT's contribution to GDP growth.

Developing the Information and Communication Technologies (ICT) strategy that supports the overall organization's business strategy is critical for generating business value. Recognizing the inadequacy of traditional quantitative cost-benefits analysis for evaluating and managing ICT investments, researchers suggest multi-criteria analysis, integrating quantitative and qualitative modeling. This chapter introduces the Balance Scorecard (BS) decision analysis framework and combines it with Real Options (ROs) analysis, in a qualitative and quantitative perspective, for modeling the business flexibility as well as for evaluating and controlling the ICT investments strategy. The multi-criteria ROs modeling applies to all perspectives of the BS framework providing a holistic decision-making model for ICT business.

Developing the Information and Communication Technologies (ICT) strategy that supports the overall organization’s business strategy is critical for generating business value. Recognizing the inadequacy of traditional quantitative cost-benefits analysis for evaluating and managing ICT investments, researchers suggest multi-criteria analysis, integrating quantitative and qualitative modeling. This chapter introduces the Balance Scorecard (BS) decision analysis framework and combines it with Real Options (ROs) analysis, in a qualitative and quantitative perspective, for modeling the business flexibility as well as for evaluating and controlling the ICT investments strategy. The multi-criteria ROs modeling applies to all perspectives of the BS framework providing a holistic decision-making model for ICT business.

Any assessment of the extent of the economic benefits for the construction sector from technological change is difficult to determine accurately but in view of the construction sector's contribution to a nation's economy, it is important that the impact of technological change on the industry is properly recognised. One area of technological change in the industry — the increased use of information and communication technology (ICT) is considered in this study, which examines the evidence concerning the crucial role of ICT usage and investment in generating growth and improving technical productivity in the industry and considers the question of how the gains from ICT can be evaluated at the industry level. The U.K. construction sector forms the focal point of this study but comparisons are also made with the construction sectors of other industrially developed countries. The results of the analysis find that the construction industry is now beginning to reap the benefits on productivity from the post ‐ 1995 surge in ICT investment.

With the aim of becoming a cyber island and making Information and Communications Technology (ICT) one of the main pillars of the economy, the government of Mauritius has been investing huge sums of money in ICT projects. For instance, in 2009 ICT investments accounted for 5.7% of the total share of the Gross Domestic Product (GDP). Given this situation, it becomes crucial to evaluate ICT investments, and as such, the main aim of this paper is to investigate the existing methods used in the evaluation of ICT investments in the public sector and propose a framework for the evaluation process. The main contribution of this work lies in the fact that evaluation of ICT projects in the public sector has remained an unexplored area, and even in the context of the private sector, most studies have concentrated on developed countries. The main results from the survey carried out in the 22 ministries reveal that Payback Period (PB) and Accounting Rate of Return (ARR) are the main financial criteria used for the evaluation. The survey also shows that the major factors, which are prioritised during evaluation process, are the relevant costs, risks, and benefits. Based on the research findings, this chapter also proposes a framework for evaluating investments in ICT projects by the public sector.

For several years, researchers and practitioners have been concerned about the impact of investments in information and communication technologies (ICTs) on productivity. The research framework of neoclassical growth accounting is widely used in this area of research on information technology and productivity. While several studies have explored the relationship between investments in ICT and metrics such as GDP, the links between investments in ICT and total factor productivity (TFP) have received less attention, particularly for transition economies (TEs). While the data that we use in this study are directly related to TEs, our exploration can provide insights that are useful for understanding similarities and differences between developed and developing/emerging economies. In this study, we propose and illustrate a methodology for investigating the relationship between investments in ICT and TFP that is consistent with the framework of neoclassical growth accounting. Narcyz Roztocki and H. Roland Weistroffer are the accepting Guest Editors for this article.

PurposeThe national and global digital transformation makes investments in information and communications technology (ICT) by financial institutions a necessity, not only for gaining a competitive advantage but also for expanding their knowledge and learning about their customers. This study assesses the business value of ICT investments by financial institutions using a mixed-method approach.Design/methodology/approachThis study adopted a mixed-method approach. First, financial data were gathered from Omani banks' annual financial reports and through a longitudinal quantitative analysis in order to assess the value of ICT in financial institutions' profitability performances. Second, a Delphi qualitative approach was utilized in order to further assess how top managers view the impact of ICT investments in different aspects of business. We used an extended balanced scorecard (finance, customer, internal process and learning and growth) and a sector perspective to address how future ICT investments can offer value that goes beyond traditional metrics of profitability.FindingsThe results of the longitudinal study demonstrated significant evidence of the impact of ICT investment on finance performance indicators; ICT value is significantly positive. Furthermore, the results indicated that there is an acceptable consensus among business and ICT managers that ICT is linked to performance indicators beyond financial; ICT value is linked also to customer indicators, internal process indicators and learning and growth indicators in addition to sector indicators.Originality/valueICT is vital for a diversified and knowledge-based economy, especially for developing countries, because modern banking and financial institutions are relatively new in economies such as those that had previously relied on cash and informal financing institutions. Therefore, continued ICT investments face challenges and may not succeed. Most of the existing literature on ICT value has focused on tangible financial performance indicators. The financial evaluation of intangible performance indicators of ICT investments still remains a problematic area of high relevance to decision-makers. The present study provides an integrated assessment that enables financial institutions to develop their strategies and assessments in terms of ICT investments and to go beyond typical, tangible financial profitability indicators. Furthermore, it integrates assessment indicators that are beyond organizations themselves and reaches sectors and countries. This type of investigation is limited in the literature yet important for the financial sector as it is highly integrated by nature and critical to the development of a nation's economy.

This study aims to examine the impact of information and communication technology (ICT) investment on the market-based performance of Vietnamese commercial banks. Using panel data from 26 banks over the period 2006–2022, the research adopts the system generalized method of moments (System-GMM) to address potential endogeneity and dynamic panel bias. ICT investment is measured through a composite ICT index, while performance is captured by Tobin’s Q, a market-based indicator reflecting investor expectations. The findings reveal that ICT investment has a positive and significant effect on Tobin’s Q, underscoring the strategic role of technology in enhancing a bank’s market valuation. In addition to ICT, factors such as bank size, the loan-to-deposit ratio, the loan loss provision ratio, and macroeconomic conditions are also found to significantly influence Tobin’s Q in ways consistent with prevailing banking practices and the economic context during the study period. The study concludes that ICT investment plays a strategic role in improving market-based performance and signaling future value to investors. These findings suggest that Vietnamese banks should adopt long-term, strategic ICT investment plans not only to enhance competitiveness but also to support broader goals of innovation and digital transformation in the banking sector, particularly in the context of Industry 4.0.

This paper assesses the impact of information and communication technologies (ICTs) on the performance of microfinance institutions (MFIs) in Niger, West Africa. MFIs play a pivotal role in improving financial inclusion in Niger because the majority of the country’s poor live in rural areas, with only limited and costly access to formal financial services. Using an unbalanced panel of 23 MFIs spanning 2005–2013, single-step generalized moments method (GMM) estimations are run to appraise whether ICT investments improve the financial and the social performance of MFIs. The results show a positive relationship between investments in ICTs and MFIs’ financial performance. Investing more in technologies enables managers to reduce the frequency of operational errors, increase the speed of task execution, decrease operating costs, and increase the likelihood of higher financial profits. The findings also reveal a positive effect of institutional affiliation on the financial performance of MFIs. Namely, MFIs affiliated with a network and investing in ICTs tend to perform better. The impact of ICT investments on the social performance of MFIs is rather weak. From a policy perspective, developing ICT infrastructure can yield substantial performance dividends and should remain a top developmental priority in Niger.

ICT and economic growth – Comparing developing, emerging and developed countries

n recent years, progress in information and communication technology (ICT) has caused many structural changes such as reorganizing of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization process. Growth economists predict that economic growth is driven by investments in ICT. However, empirical studies on this issue have produced mixed results, regarding to different research methodology and geographical configuration of the study. The aim of this research is to empirically study the external effects of ICT on economic growth by the endogenous production growth model, using panel data collected from newly industrialized countries (NICs) in the world namely Mexico, Brazil, China, India, South Korea, Malaysia, Singapore, Philippines, Thailand and Turkey over the period of 19902008. This paper indicates a considerable lags between the time of investing in these technologies and the time at which the externalities arise. The focus is on the possible network effects and spillovers emerging as externalities from investments in ICT. This study also shows that productivity obtained from ICT is larger than one would expect from a standard neoclassical growth accounting approach.

ABSTRACTResearch on the effect of information and communication technology (ICT) on productivity in developed countries is already extensive, but the spillover and time-varying effects of ICT investment across economic activities have been only minimally explored. This paper investigates the impacts of ICT and its spillovers on productivity in Canada, focusing on heterogeneity across provinces and industries over time. The panel data estimation model includes 10 provinces with diverse economic activities for the period 1990–2008, and the two-digit level industries for the period 1981–2008. The findings show that ICT has a positive impact on labour productivity, but the effects vary significantly across provinces, industries, and time. Specifically, while provinces with higher shares of manufacturing and services in their GDP have reaped the benefits of ICT investment, other provinces primarily dependent on natural resources and agriculture are lagging behind. The industry-level analysis also reveals that manufacturing and services industries have benefited from ICT investment much more than primary sector industries. The results further indicate that ICT investment in the USA, a major trading partner, has spilled over to some Canadian provinces and industries and that the overall ICT effects are stabilized in those ICT-intensive provinces and industries.

Access to information and communication technologies (ICTs) is becoming a necessity not only for communication, but for commerce, and for obtaining information about healthcare, employment, and education. Unfortunately, the global digital divide has deepened to include limits on access to mobile broadband services. This paper uses an information ethics (IE) perspective, based the work of Floridi, which builds on previous ethics work by Rawls and Sen. From an IE perspective, we empirically examine the impact of economic, social and political dimensions of social justice (due to Rawls), individual capabilities (due to Sen), and governance principles on mobile broadband affordability in 103 countries. Key questions addressed are: (1) do people have a right to access the Internet via broadband for services and information that are vital to their well-being? And (2) what factors enable or hinder people from being able to afford mobile broadband access in order to obtain such information? This cross-national study shows that specific forces of social justice -- income inequality and a shared investment in ICTs -- and an individual capability -- per capita income -- together determine to what extent mobile broadband services are affordable. This study also shows that a more competitive mobile telecommunications ecosystem reduces the cost of mobile broadband services. Furthermore, these results hold even when the cost of mobile broadband in each country is normalized by the per capita gross national income.

This paper examines whether electronically developed countries are gaining more from investments in information and communication technology (ICT) products. Previous research in the field has extensively used the GDP per capita as an index for country categorization into developed, emerging and developing. Instead, we make use of the UN’s electronic government development index (EGDI) in order to construct two groups of countries based on their level of electronic development for the period 2007-2016. We use panel data regressions to estimate an augmented Cobb-Douglas production function for each of these two groups as well as the combined sample of all countries. The results indicate that ICT output elasticities are positive and statistically significant for both group of countries, with electronically developed countries having an edge over less developed. Moreover, the hypothesis of equal ICT elasticities between the two groups could not be rejected, suggesting that electronically developed countries do not exhibit excessive returns from ICT investments.