Information Technology Adoption for Service Innovation and Firm Performance

The importance of adopting information technology (IT) on current business practices has long drawn attention by practitioners and academicians. This study aims to investigate the impacts of IT adoption to service innovation and to firm performance. In the context of financial firms, a research framework along with hypotheses were proposed and examined. An empirical survey was performed that questionnaires were mailed to 558 Taiwan financial companies. A total of 103 valid observations were collected and analyzed using the structural equation modeling (SEM) technique. The analysis results showed that IT adoption has positive effects on service innovation and service innovation has a positive effect on firm performance. Discussion, conclusion, and managerial implications are provided at the end