THE IMPACT INFORMATION TECHNOLOGY ON

BUSINESS ADMINISTRATION AND

MANAGEMENT

HASSAN ABDULLAH QADAR

SALEH AHMED HEZAM
WAIL MOHAMMED AL-SHAMI

FACULTY OF BUSINESS AND FINANCE

INTERNATIONAL UNIVERSITY OF
TECHNOLOGY TWINTECH
2021

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 CHAPTER TWO

LITERATURE REVIEW AND HYPOTHESES DEVELOPMENT

2.1 Introduction

This chapter provides different definitions for information technology, business

administration and, management from different studies and researchers opinions. The
importance of each variable is discussed in this chapter as well as a review on the
literature is provided. Finally, research framework and hypotheses are developed from
reviewing the literature on the research's variables.

2.2 Management

Management is the coordination and administration of tasks to achieve a goal. Such

administration activities include setting the organization’s strategy and coordinating the
efforts of staff to accomplish these objectives through the application of available
resources. Management can also refer to the seniority structure of staff members within an
organization.( Sethy K, 2020).

2.2.1 Importance of the Management

1. It helps in Achieving Group Goals:

It arranges the factors of production, assembles and organizes the resources,
integrates the resources in effective manner to achieve goals.
2. Optimum Utilization of Resources:
Management utilizes all the physical & human resources productively. This leads
to efficacy in management.
3. Reduces Costs:
It gets maximum results through minimum input by proper planning and by using
minimum input & getting maximum output.
4. Establishes Sound Organization:
No overlapping of efforts (smooth and coordinated functions).
5. Establishes Equilibrium:
It enables the organization to survive in changing environment. It keeps in touch
with the changing environment. (Prachi Juneja, 2015).

2.2.2 Benefits of Management

1. Providing Vitality to Organizations.

2. Topmost Activating Element.
3. Key to Productivity.
4. Achievement of Goals.

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 5. Better Performance.
6. Creativity.
7. Co-ordination of Various Interests. (Priyali Sharma, 2017).

2.2.3 Previous studies about Management

In June 2020, R.K. Jena conducted a research named Measuring the impact of business
management student's attitude towards entrepreneurship education on entrepreneurial
intention: A case study.

According to this study entrepreneurship has played an essential role in economic

prosperity and social stability of many developed countries. India has the highest
percentage of young population in the world and faces massive challenges with its high
levels of unemployment among the youth. The unemployment scenario primarily due to
lack of skill and entrepreneurial awareness among youth. The objectives of this study were
to (1) examine the cognitive, affective, and behavioral components of students’ attitude
towards entrepreneurship education in Indian universities/colleges, (2) measuring the
impact of student's attitude towards entrepreneurship education on entrepreneurial
intention (3) examine the role of control variables (e.g. gender and entrepreneurial family
background), on the relationship between attitude towards entrepreneurship education and
entrepreneurial intention. The respondents were students from different business
management colleges/universities in central India. Purposive sampling technique was used
in the selection of the colleges/universities, while simple random sampling was employed
in the selection of the respondents. Data from five hundred nine filled questionnaire were
analyzed using ‘R Programing Language’ to obtain the results. The results showed a
significant positive impact of attitude towards entrepreneurship education on
entrepreneurial intention.

Another study, in January, 2018, Dalia Suša Vugec, Katarina Tomičić-Pupek, Vesna
Bosilj Vukšić conducted a research named Social business process management in
practice: Overcoming the limitations of the traditional business process management.

According to this study business process management (BPM) is a well-known holistic

discipline used widely in practice for managing business processes and achieving better
organizational performance. However, recently, due to technological development, using a
traditional approach to BPM is not enough anymore. The answer to the limitations of the
traditional BPM has been found in the introduction and application of the social software
principles in the management of business processes within a new and emerging area called
social BPM. In order to investigate its implementation and usage within the companies, a
literature review has been conducted. It confirmed that social BPM is a developing
phenomenon.

2.3 Business Administration

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Business administration is the supervising and overseeing of business operations. A career
in this field is likely to involve working in many different aspects of a company, from
business research, to economics and finance. (Narsingh Shrestha, 2021).

2.3.1 Benefits of the Business Administration

1. Develop Key Administration and Leadership Skills.

2. Wide Range of in-Demand Careers.
3. An Introduction to the Business World.
4. Natural Progression to Further Study.
5. Learn about Multiple Disciplines.

2.3.2 Characteristics of the Business Administration

1. Organization.
2. Time Management.
3. Interpersonal skills.
4. Customer Focus.
5. Management. (BUSY BEE RECRUITMENT, 2017).

2.3.3 Previous Studies about Business Administration

In March 2017, Elena V. ZudinaVeronika S. Epinina conducted a research named

Effective Human Resources Management as the Most Important Condition of Successful
Business Administration.

According to this study the purpose of the article is to determine perspectives of increase
of effectiveness of business administration of modern enterprises by means of
improvement of the process of HR management. In order to verify the offered hypothesis,
the work uses the methods of factor analysis and methods of correlations and regression
analysis. With these methods, the authors determine the contribution of HR management
into success of business administration. The authors determine the most important
indicators of success of business administration, describe the contribution of HR
management into achievement of its effectiveness, and offer the authors’
recommendations for increase of effectiveness of HR management of the studied
enterprise. As a result of the research,  it was found that effective HR management is the
most important condition for successful business administration. That’s why during the
process of business administration of modern enterprise, it is necessary to pay special
attention to issues related to HR management. Perspectives of increase of effectiveness of
business administration of modern enterprises by means of improvement of the process of
HR management are connected to growth of the role of personal aspect of human capital.

Another study in January 2019, Jordan V. Wang conducted a research named Business
administration training for dermatology residents: preparing for the business of medicine.

According to this study have evidenced the lack of practice management and business
training components in the residency curriculum, and that satisfaction with this training,
when provided, was low. Whether considered good or bad, medicine has been moving

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increasingly toward becoming more business centric. Dermatology represents a unique
field, because most residents choose to pursue private practice, where competent business
skills are helpful to running a successful clinic. Our study examines the current state of
business administration training for dermatology residents in Accreditation Council for
Graduate Medical Education–approved programs as of 2017 to 2018.  Our results show
that residents both value and desire business administration training; however, the current
training provided is considered to be insufficient and inadequate. Promoting and
encouraging the teaching of business administration skills, while still balancing core
competencies, may help to prepare residents in navigating the future of our field.

2.4 Information Technology

Information technology (IT) is the use of any computers, storage, networking and other
physical devices, infrastructure and processes to create, process, store, secure and
exchange all forms of electronic data. (Rich Castagna Stephen J. Bigelow, S, 2021).

2.4.1 Importance of Information Technology

1. Helps to build and grow the commerce and business sector and generate maximum
possible output.
2. It provides electronic security, storage, and efficient communication.
3. To get success in any business field.
4. Providing a strong communication system to communicate effectively.

2.4.2 Benefits of Information Technology

1. Accurate and speedy processing of information.

2. Globalization.
3. Effective communication.
4. Entertainment.
5. Communicating news.
6. Advancement of economies.
7. Creation of new jobs. (Arun Thakur, 2019).

2.4.3 Previous studies about Information Technology

In November 2018, Ron Torten, Carmen Reaiche, and Stephen Boyle conducted a
research named The impact of security awarness on information technology professionals’
behavior.

According this study protecting digital assets is a growing concern for corporations, as
cyberattacks affect business performance, reputation, and compromise intellectual
property. Information technology (IT) security in general and cyber security, in particular,
is a fast-evolving area that requires continuous evaluation and innovation. The objective of
cyber-attacks has not changed over time however there is a shift in the attack methods
through the increased use of social engineering, concentrating on the human elements as

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the weakest link in the security posture of any system network. This research looks at the
relationship between threat awareness and countermeasure awareness on IT professionals’
compliance with desktop security behaviors.  The model originally put forward by Hanus
and Wu (2016), was tested on a population of 400 IT professionals across a broad range of
IT roles and company sizes in the United States. The overall findings show that 61.2% of
the variability in desktop security behavior can be explained by threat awareness and
countermeasure awareness. In addition, the research found a determinant relationship
between threat awareness and countermeasure awareness with the five elements of
protective motivation theory (PMT), which include perceived severity, perceived
vulnerability, self-efficacy, response efficacy, and response cost. Finally, the research
shows that all elements of PMT, with the exception of perceived vulnerability,
significantly determine desktop security behavior.

Another study, In February 2018, Ahmed, Adel Abu-Naser, Samy S. El Talla, Suliman A.
Al Shobaki, Mazen J. conducted a research named The Impact of Information Technology
Used on the Nature of Administrators Work at Al-Azhar University in Gaza.
According this study aimed to examine the Information Technology used and its effect on
the nature of the work of the administrators at Al-Azhar University in Gaza. The
researchers used the analytical descriptive method through a questionnaire randomly
distributed among the employees of Al-Azhar University in Gaza. The study was
conducted on a sample of 77 employees the response rate was 92.20%. The study reached
a number of results, the most important of which is that there is a high degree of
Information Technology Used at Al-Azhar University- Gaza from the point of view of the
administrative staff, where the percentage (74.14%). And that there is a high level of the
prevailing the Nature of Administrators Work from the point of view of administrative
staff, where the percentage (72.14%), there is a direct correlation between the Information
Technology Used and the Nature of Administrators Work, there is a statistically
significant effect of the Information Technology Used on the Nature of Administrators
Work at the university, the absence of differences between the sample according to the
variable (gender and variable age) in their perception of the Information Technology Used
and the Nature of Administrators Work, there are differences of statistical Sig. in the
perception depending on the variable of scientific qualification in Field of the Nature of
Administrators Work, while there were no differences in Field: technology used, the
differences in the Nature of Administrators Work according to the scientific qualification
were in favor of those who obtained the diploma degree compared to postgraduate studies,
the absence of differences in the perception of employees of the Information Technology
Used and the Nature of Administrators Work according to the variable years of service,
and the variable level of employment (manager, head of department, administrative
officer), and the change of the workplace. The study reached a number of
recommendations, the most important of which is the necessity of giving universities the
opportunity to participate in decision-making, the continued administration of universities
interest and continuous improvement of the performance of its employees, the need to
strengthen the periodic evaluation of job performance and to inform the employees and to
express their opinion, the importance of solving the problems of Employees and giving
them the opportunity to contribute to solving their own problems, the need to use the
method of rotation of employees and periodically, and the importance of strengthening the
democratic leadership style and empowering university staff.

2.5 Previous study about The Impact of Information Technology on Business

Administration and Management

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2.6 Research Framework

The purpose of the development of the research framework is to examine the relationships
between information technology and business administrative and management. The
theoretical framework proposed in this study comprised of independent variables namely
information technology and business administrative and management considered as a
dependent variable in the theoretical framework as illustrated in Figure 2.1.

IV DV

Business
H1
administration
Information
technology H2

Management

2.5 Hypotheses Development

Based on the extant literature review and theoretical development discussed in previous
sections, a number of hypotheses have been developed to answer the two identified
research questions.

H1: Information technology has a significant effect on business administration.

H2: Information technology has a significant effect on management.

2.6 Summary

In conclusion, this chapter has provided different definitions for each variable and stated
the importance of management and business administration as well as information
technology Moreover, the literature on the research variables have been discussed from
different researchers’ point of views. Based on the literature review research framework
and hypotheses were developed to answer the research question.