LEVERAGING IT CAPABILITIES TO ENHANCE INVESTMENT DECISIONS IN NIGERIAN PRIVATE SECTOR FIRMS

Abstract

This study investigates the influence of information technology (IT) capability dimensions on investment decision processes in Nigerian private firms. Drawing on the Resource-Based View (RBV), the study examines four key IT capabilities—IT infrastructure capability, IT human capability, IT relationship capability, and IT integration capability to determine their relative contribution to investment decision quality. A quantitative research design was adopted, and data were collected from 367 managers, finance officers, and IT professionals across major commercial cities including Lagos, Abuja, Rivers, and Kano. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to assess the measurement and structural models. The findings reveal that IT human capability and IT infrastructure capability have significant positive effects on investment decision processes, underscoring the importance of skilled IT personnel and robust technological systems in supporting data-driven evaluations. In contrast, IT relationship capability and IT integration capability do not significantly influence investment decisions, suggesting potential weaknesses in IT–business alignment and system interoperability within the Nigerian private sector. The model explains 61.2% of the variance in investment decision processes, indicating substantial predictive power. The study contributes to IT capability literature by highlighting context-specific factors affecting strategic decision-making in emerging economies. It recommends enhanced IT training initiatives, investment in digital infrastructure, and improved integration strategies to strengthen decision quality and organizational competitiveness.