Ask a question from expert
Impact of Technology in Finance Domain
11 Pages2484 Words82 Views
Added on 2021-05-31
Impact of Technology in Finance Domain
Added on 2021-05-31
BookmarkShareRelated Documents
Running head: IMPACT OF TECHNOLOGY IN FINANCE DOMAINImpact of technology in finance domainUniversity NameStudent NameAuthors’ Note
2IMPACT OF TECHNOLOGY IN FINANCE DOMAINTable of ContentsBrief summary of the theory......................................................................................................2Common themes across four different articles...........................................................................2Different themes across four different articles...........................................................................5Managerial implications of the four articles..............................................................................6Study limitations and future research directions in four articles................................................7References..................................................................................................................................9
3IMPACT OF TECHNOLOGY IN FINANCE DOMAINBrief summary of the theoryImpact of technology expends on banking, insurance as well as financial services: Economicrecession adversely influenced technology spending by businesses. Differentiation model: Inorder to cope with the observation that banks deliver highly differentiated product, a simpledifferentiated model can be adopted. There are some alterations that are carried out in a bid toconsider the network externality generated by the adoption of information technology (IT).As rightly indicated by Philippon (2015), there is market equilibrium after adoption ofinformation technology and draw from three testable conclusions regarding the associationbetween performance of market and IT expends. Common themes across four different articlesThere are certain common themes across four different articles that concentrate on impact oftechnology in finance domain. The article “ The impact of Information Technology on the Banking Industry: Theory andEmpirics” penned by Shirley J. Ho and Sushanta K. Mallick helps in development andexamination of model to scrutiny the influence of information technology (IT) in the bankingindustry. Essentially, it is said that information technology can enhance performance of thebank in two different ways. In particular, information technology can lessen operational cost;facilitate various commercial transactions among consumers within same network.Particularly, empirical studies have reflected inconsistency on the hypothesis; some are inagreement with the Solow Paradox (Redlinger et al. 2016). However, there are someempirical studies have adopted production function approach; it is intricate to recognizewhich effect has dominated. Therefore, the reasons attributed have been the variance in
4IMPACT OF TECHNOLOGY IN FINANCE DOMAINeconometric methods and measurements. In essence, this research paper intends to illustratethe inconsistency model with specific network effects. The article “Digital Transformation in Banking- The Future of Banking” presents the fact thatdigital transformation is way beyond traditional banking to a specific digital world. Inessence, this is a crucial transformation in the way banks along with other financialinstitutions learn about, interact and satisfy their customers. Essentially, an efficacioustransformation due tom digital revolution starts with comprehensive understanding regardingdigital customer behaviour, tastes as well as preferences along with unstated needs and manyothers. Vogel (2014) mentions this transformation directs toward major alterationsincorporations, from production-centric to particularly customer centric point of view. The article “Information technology Payoff in E-business Environments: An InternationalPerspective on Value Creation of E-Business in the Financial Services Industry” stated byKevin Zhu, Kenneth L. Kraemer & Jason Dedrick. Technology-organization-environmentframework helps in research model for evaluating the value of e-business at the level of thefirm. In essence, e-business value is inspired by economic environments, the two differentsubsamples from developed as well as developing nations. Founded on structural equationmodelling, empirical evaluation shows different important findings (Qiu et al. 2018). Inessence, within TOE framework, particularly technological readiness stems as the strongestfacet for e-business value, whilst financial resources, worldwide scope along with regulatoryenvironment also considerably contribute towards e-business value. Again, firm size is alsonegatively associated to value of e-business, recommending that structural media related tohuge firms have the inclination to retard overall value of e-business. Again, this articlepresents the opinion that financial resources are also a significant facet in differentdeveloping nations, technological abilities become far more important in different developednations. This recommends that as firms move into deeper phases of e-business value shifts
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
The Impact of Information Technology on the Banking Industrylg...
|9
|857
|124
Auditing Applied Business Researchlg...
|9
|1782
|263
(pdf) Introduction to Accounting Assignmentlg...
|10
|2276
|203
Field Theory Answers - Assignmentlg...
|8
|1841
|62
Business Research Methodologylg...
|4
|1612
|50
Impact of Online Accounting System on Small Business PDFlg...
|5
|1775
|62