Technology investment decision-making: case studies of the implementation of contactless and QR payments in commercial banks of Kazakhstan
Item statusRestricted Access
Embargo end date25/11/2023
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.