International Journal of Business and Economics Volume 18, No. 1 June, 2019

The Impact of Internal Financing Sources and Bank Financing on Information Technology Investment

Amarjit Gill

Edwards School of Business, The University of Saskatchewan, Canada

Harvinder S. Mand

University College Dhuri, India

Afshin Amiraslany

Edwards School of Business, The University of Saskatchewan, Canada

John D. Obradovich

Liberty University, U.S.A.

Abstract

Studies show that internal financing sources (IFS) and bank financing (BF) motivate firms for investment. In line with previous studies, this study examines the impact of (IFS) and (BF) on information technology (IT) investment, by surveying owners of small business firms in India for data on IFS, BF, and IT investment. According to the findings, IFS and BF increase IT investment, while firm age, firm location, and owner education also enhance IT investment. By demonstrating the impact of IFS and BF on IT investment, this study contributes to the existing literature, offering its findings for investment advisors, the India government, and owners/operators of small business firms.

Keywords：information technology investment, internal financing sources, bank financing, small business, India.

JEL Classifications：D81, G11, J16.

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