The Influence of Information Technology System Quality on Business Value Creation in Commercial Banks in Tanzania: The Moderating Role of Information Technology Knowledge Management

Abstract

This study examines the influence of IT system quality on business value creation in commercial banks in Tanzania. Moreover, the study tests the moderating role of IT knowledge management on the influence of IT system quality on business value creation. Data was collected using a questionnaire filled by heads of marketing and finance from all 35 commercial banks in Tanzania and analysed using Structural Equation Modelling through SmartPLS. The findings revealed that there is a positive and significant influence of IT systems quality on business value creation and IT knowledge management moderates the influence. The findings suggest that a bank with better IT quality has a high chance of creating value for the business and a bank that empowers business managers with IT knowledge has a better chance to improve the role of its IT systems in enhancing business value creation. The study provides insights into the role of business managers’ IT knowledge and skills in creating value in technology-dependent organizations in developing countries. Banks are therefore encouraged to create an environment for business managers to develop and apply their IT knowledge in executing their responsibilities.