Technology investment decision-making: case studies of the implementation of contactless and QR payments in commercial banks of Kazakhstan
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Date
29/11/2022Author
Moldabekova, Symbat
Metadata
Abstract
This research explores the practice of technology investment decision-making in Kazakhstani banks. It focuses on the implementation of contactless
and QR payments and uses interviews with bank executives and practitioners
to offer insights into the actual experience of decision-making on technology
investments. The research aimed to: (1) provide a clearer picture of how
valuation techniques relate to organizational processes; (2) examine the ways
that how valuation techniques are interpreted and used when decisions are
made in practice; and (3) identify the role of human agents and the wider
context constraints on decision-making about technology. The ultimate aim of
the research is to provide a conceptual framework that reflects the reality of
technology decision-making in Kazakhstani banking.
According to the theoretical framework, technology decision-making is a
complex activity that involves financial assessment methods, negotiations
between relevant actor groups, organizational dimensions, and the external
environment. Technology decision-making is described to be consisting of
these attributes and as the outcome of the influence and relationship between
them. Five attributes of technology decision-making are identified: (1) the wider
context; (2) perception of technology; (3) customers’ views on technology; (4)
organizational factors; and (5) organizational regulations.
A model named “Perception-based Attributes of Technology Decisions” is
proposed. It suggests that perception of technology, an abstract concept, is
the main component that defines the whole process of technology decision-making. Perception of technology represents common knowledge developed
from attitudes and judgements of industry experts on what technology needs
to be introduced and the right way to conduct its implementation. The key
findings of the research are: (1) traditional financial assessment methods are
not widely used in technology decision-making; (2) existence and influence of
power relations; (3) path-dependency of technology decision-making; and (4)
most importantly the influence of the socio-economic context, where
technology decisions are made. The essential conclusion is that technology
decision-making is not only an investment evaluation exercise, but is also
determined by how bank practitioners view technology and the approach of
decision-making for respective technology in the given constraints of the wider
context.