Deriving Value from End-To-End (E2E) Solutions in A Developing Country: A Study of Loan Processing in Bangladesh

One of the key differences between developed and developing economies is that the ‘IT Productivity Paradox’ (the relatively slow growth of economic and firm productivity despite advances in IT) is still evident in developing economies. End-to-End (E2E) solutions are seen as a way of improving process and firm productivity by concurrently implementing IT systems and process improvements, and are of particular interest to companies based in developing countries as they have the potential to deliver the necessary improvements in business processes that are hypothesized to drive firm, sectoral and economic performance improvements. This study aims to identify the factors (labeled, ‘IT value conversion contingencies’) that impede firms in developing countries from realizing value from E2E solutions. The paper begins by developing a conceptual model based on the extant literature on IT value conversion contingencies, E2E solutions and developing countries. This model is tested in the context of E2E loan processing solutions in the banking sector in Bangladesh. Using survey responses from 30 of the 48 banks operating in Bangladesh, the study identifies the IT value conversion factors of E2E solutions and reveals the impact of such factors on how banks derive value from E2E solutions.