THE EFFECT OF INFORMATION TECHNOLOGY ON ORGANIZATION PERFORMANCE: A CASE OF THE NATIONAL INSURANCE CORPORATION OF TANZANIA

Abstract

ABSTRACT In the era of digital transformation and rapid technological advancement, integrating information technology systems into organizational processes is crucial for enhancing performance, sustaining competitiveness in business operations, and coping with market demands. This study investigates the effect of information technology on organizational performance, specifically the operational efficiency of the National Insurance Corporation of Tanzania, focusing on the perceived usefulness of IT, the perceived ease of use of IT, and actual system usage of IT across underwriting, claims processing, actuarial services, policy serving, and risk management. Using a stratified random sampling technique, data were gathered from 89 respondents of the NIC employees through structured survey questionnaires and analyzed using SPSS IBM version 26 to perform descriptive and inferential statistics, and regression analysis. The findings revealed that while the perceived usefulness of IT has a negative but not statistically significant effect on operational efficiency, both the perceived ease of use and actual system usage of IT have a positive and significant effect on operational efficiency as the results of optimizing organization performance at NIC. Recommendations include implementing regular IT training programs, strengthening internal communication strategies, encouraging investments in advanced IT systems, and developing robust data governance policies. Future research should consider longitudinal studies to examine the long-term effects of IT on organizational performance and comparative analyses across different industries to identify best practices.