Fredric William Swierczek, Pritam K. Shrestha, and Clemens Bechter

This study considers the IT impact on productivity in two groups of Asia-Pacific banks based on reported profitability during the Asian financial crisis. The banks perceive increased productivity, and both strategic and operational benefits from IT. The high costs of IT permit only suboptimal investments, in both IT capital and IT labor. Better management of IT resources enhances competitiveness through higher quality service at lower costs, delivered faster through a variety of channels more convenient to customers. IT investments and their proper implementation are more relevant when the banks are not performing well.