The Impact of IT Investment on Firm Performance in Korean Insurance Industry

Over the past three decades, the impact of information technology (IT) investments on firm performance has been the subject of active research. Despite increasing importance of research into the productivity of IT in developing countries, almost all findings on IT productivity are based on data collected in developed countries. This study tries to investigate the effects of IT investment on firms´ financial performance in the insurance industry of South Korea. Findings show that IT investment has a positive impact on both on cost efficiency and organizational growth in South Korea.