THE IMPACT OF INVESTMENT IN TECHNOLOGY AND HUMAN CAPITAL ON THE FIRM’s FINANCIAL PERFORMANCE: AN EMPIRICAL STUDY

Harold C. Okere
Walden University

ABSTRACT

The objective of this study is to investigate the impact of investment in technology and
systems management (human capital) on firm’s achieving competitive advantage. The impact of
the field of information technology and systems management on competitive advantage is
analyzed. Current theories on competitive advantage and other areas of contention are discussed.
The impact of investment in technology and human capital on the company’s financial
performance was investigated. In Table 1, Corporate Financial performance is the dependent
variable, and the investment in both technology and human capital are the independent variables.
The study adopted content analysis as its research methodology. The findings of the research
confirmed that investment in technology and information systems management (human capital)
will continue to exert influence on the future directions of a firm’s competitiveness. The more
globalized the world becomes the more significant social issues, such as corporate social
responsibility and sustainable issues become prevalent. The research also showed that the future
of information technology depends very much on human capital. Finally, further research is
recommended in this area in order to determine the variables that are good predictors of
profitability and change management to determine the firm’s agility and resilience towards
changing business environment.

Keywords: Investment in technology, systems management, human capital, competitive advantage, financial
performance.