The widespread transformations in information and communication technology (ICT) have presented public sector organizations with new opportunities and challenges in resource management and performance enhancement. Municipalities, as key urban management entities, are increasingly in need of effective ICT utilization due to the breadth of their responsibilities, the complexity of their organizational structures, and their financial resource limitations. Investment in ICT can play a significant role in improving the financial performance of municipalities by enhancing financial transparency, increasing process efficiency, and improving decision-making quality. However, empirical evidence regarding the extent and manner of the impact of this type of investment on the financial performance of Iranian municipalities, especially in major cities, remains limited.
The purpose of the present study is to examine the relationship between investment in information technology and financial performance in the Municipality of Tabriz. This research is applied in terms of its objective and is descriptive-survey in methodology, based on structural equation modeling. The statistical population of the study includes all employees of the Municipality of Tabriz, numbering approximately 15,000 individuals. Based on Cochran's formula, a sample size of 375 individuals was determined and selected using stratified random sampling. The data collection tool was a standard questionnaire, and its validity and reliability were confirmed using established indices. To analyze the data and test the research hypotheses, the AMOS software and the structural equation modeling method were used.
The research results indicated that investment in information technology has a positive and significant impact on the financial performance of the Municipality of Tabriz. The findings also suggest that the development of information technology infrastructure and the effective use of information systems can lead to improved financial efficiency, cost control, and increased financial transparency in the municipality. The results of this study can have important practical and policy implications for the managers and decision-makers of the Municipality of Tabriz and other municipalities across the country, in terms of optimal resource allocation, formulating information technology strategies, and enhancing the financial health of urban organizations.