The Role of Information Technology in Customers’ Service Delivery and Firm Performance: Evidence from Nigeria’s Insurance Industry

Abstract

Information technology is crucial for a communication based process. Therefore, this study presents an investigation of the significant role of information technology in customer service delivery and firm performance in selected insurance companies in Nigeria. Specifically, three hypotheses were tested. They are to determine whether: (i) customers are not aware of the availability of IT facilities in their dealings with the Nigerian insurance companies; (ii) the use of IT does not enhance the performance efficiency of insurance organizations in Nigeria; and (iii) providing quality customer service delivery will not enhance organizational performance of insurance companies. The survey research design for the study was a cross examination. The study sample consisted of 112 participants made up of IT managers, marketing managers, and underwriting managers drawn from 25 insurance companies which were randomly selected from the directory of member companies. One-sample T-test and simple frequency percentage tables were used for data analysis. The study revealed that most customers hardly use online services in their engagement with the Nigerian insurance companies even with the level of awareness created which depicts a low level business relationship. Thus, many of the insurance organizations indicated that they experienced high performance efficiency in their investment in and adoption of information technology. This study recommends that insurance administrators and regulators at all levels should gather relevant information as regards factors that may assist in contributing meaningfully to the usefulness of IT in effective service delivery. They should also undertake optimal investment in IT, provide quality service delivery to customers and regularly evaluate IT usage in every department of insurance organizations in Nigeria in order to take appropriate strategic decisions capable of enhancing firm performance.

Empirical Examination of the Implementation of Electronic Payment Systems in Service Delivery of Insurance Companies in Nigeria

“…This is in consistent with recent studies, such as Aduloju, Olowokudejo, & Obalola (2014), Idris et al (2013), Breznik (2012), Chen & Tsou (2007), and Ray, Muhanna, & Barney (2005), among others]. For example, while the study of Ray et al (2005) expressed that a firm may be placed at competitive disadvantage in terms of the performance of its customer service process if there is failure to invest in IT resources and capabilities; Idris et al (2013) opined that customer service delivery process of insurance companies in Nigeria can become better if they invest more in information technology, make provision for IT training facilities to staff from time-to-time, and educate their customers to ensure faster, smooth and quality service delivery performance.…”

“…Oghojafor, Aduloju, & Olowokudejo (2011) had emphasized that, in the world of business, electronic commerce serves as the cornerstone which evolves relationship within strategicoriented business environment and thus, strategized for modern competitive edge. The work of Idris, Olumoko, & Ajemunigbohun (2013) opined that enormous effort should be put together at integrating information technology, customer service and firm performance; and thus stipulated that technology is to the advantage of customer and should lead to customer loyalty, as organization can communicate with customers using up-to-date techniques on a real basis which will remove uncertainty and lead to the creation of trust.…”

Beyond profitability: ICT investments and financial institutions performance measures in developing economies

“…Customers are becoming more powerful, and customer-focused strategy is becoming the strategy that enables competitive advantage for several organizations, especially service-based organizations such as the financial institutions. The adoption of ICT in financial institutions has brought improvement in customer base, mass customization, product innovation, convenience in money access and transactions anytime and anywhere (Idris, et al , 2013 in Nigeria; Abofaied, 2017 in Libya; Khaled and Bani-Ahmad, 2019 in Jordon). Financial institutions focus on assuring customers' privacy through several technologies such as biometrics, smart cards and multiple authentication mechanisms (Nasri and Charfeddine, 2012).…”

The role of information systems usage in enhancing port logistics performance: evidence from the Dar Es Salaam port, Tanzania

“…Effects of information systems usage on timely delivery of goods and services Idris et al (2013) conducted a study that investigated the roles of information systems usage in customer service delivery and firms' performance. The survey research design was applied to 25 firms.…”