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The effect of competitive environment and information technology infrastructure on bank’s performance in Malaysia
Anita Ismail1, Muhammad Shukri Bakar2.
The performance of the bank is very crucial as it provides input and output of the
economy. If the performance profitability of bank is sound and in a resilient condition and that
will definitely attract more people to make a deal with banks. The performance of banks can
influence all the sectors through the monetary circulation. Banking has been a prolific industry
for innovation concerning information systems and technologies. In the epoch of globalization,
the competitive business environment of the banking institutions is expected to escalate
dramatically. Similarly, the banking institutions in Malaysia have experienced noticeable
changes in its business environment as a consequence of financial liberalization and
consolidation, economic transformation, and more discerning consumers. The study will
provide the empirical evidence of the following output: new findings and knowledge that
benefited the researchers and managers at banks that emphasize the strategic importance of
information technology infrastructure and competitive environment in the performance within
the Malaysian banking institutions. The results of the analyses show that information
technology infrastructure has a significant effect towards performance, while competitive
environment showed an insignificant relationship of information technology infrastructure with
the performance. Thus, appropriate strategies are important to enhance their performance and
ensure their survival, especially in these turbulent economic times.
Affiliation:
- Universiti Sains Islam Malaysia, Malaysia
- Universiti Utara Malaysia, Malaysia
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