An empirical study of the relationship between a self-service technology investment and firm financial performance

Authors:
Chia S. Hung;David C. Yen;Chin S. Ou
Affiliations:
Department of Accounting and Information Science, Nan Hua University, Da-Lin, ChiaYi 62248, Taiwan, ROC;Department of Decision Sciences & MIS, Miami University, Oxford, OH 45056, USA;Department of Accounting and Information Technology, National Chung Cheng University, Min-Hsiung, ChiaYi 621, Taiwan, ROC
Venue:
Journal of Engineering and Technology Management
Year:
2012

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Abstract

More and more enterprises are taking advantage of self-service technologies (SSTs) in their customer-related operating activities, especially service firms. Although research on SSTs is prevalent, few studies have examined the impact of SSTs on firm financial performance. Given the growing importance of SSTs in the service industries in general and in the banking industry in particular, we therefore empirically examined the impacts of ATMs, one of the most widely accepted SSTs, on bank financial performance. Contrary to the existing literature, our results show ATMs have a positive relationship with profitability. However, we find no association between ATMs and growth performance.