The efficiency of capital investment decisions pertaining to information technology: a multi-institutional approach

D.Phil.IT plays a vital role in most institutions, and decision-makers have to be concerned about ensuring that capital investment decisions pertaining to IT investments are efficient. This is even more crucial in the prevailing tough economic conditions. The intention of the study was to test the perceptions of IT decision-makers on the efficiency of capital investment decisions pertaining to IT within their various institutions. The management dilemma in this study was described as the inability by decision-makers to tell whether or not the IT investment would deliver the desired results. In order to resolve the management dilemma, a list of management questions was raised, for example:  Which factors had an impact on the efficiency of capital investment decisions pertaining to IT?  How did decision-makers quantify the financial and non-financial costs attributable to IT investments?  How did decision-makers quantify the financial and non-financial benefits attributable to IT investments? The primary objective of the research was to conduct a literature review on the identified research constructs and through scientific empirical research construct evidence in support (or otherwise) of the hypotheses that are put forward. The secondary objectives of the research were:  Identifying the factors that impact on the efficiency of capital investment decisions pertaining to IT;  Determining the levels of satisfaction by various stakeholders with regard to the value that IT investments add to their institutions;  Determining whether or not institutions were able to identify and quantify the financial and non-financial costs attributable to IT investments;  Determining whether or not institutions were able to identify and quantify the financial and non-financial benefits attributable to IT investments; iv  Determining whether or not IT investments created a competitive edge over other institutions;  Determining the applicability of risk management tools on IT investments within various institutions; and  Determining the extent to which current financial tools were utilised in evaluating capital investment decisions pertaining to IT