1 st Mae Fah Luang University International Conference 2012 1 EVALUATING IMPACT OF IT INVESTMENTS ON CUSTOMER SATISFACTION: AN EMPIRICAL STUDY ON THAILAND’S MINISTRY OF TRANSPORT IT PROJECTS Pisit Chanvarasuth 1,* and Veera Boonjing 2 1 Management Technology Program, Sirindhorn International Institute of Technology, Thammasat University, Pathumthani 12000, Thailand 2 Department of Computer Science, Faculty of Science, King Mongkut's Institute of Technology Ladkrabang, Bangkok 10520, Thailand *e-mail: pisit@siit.tu.ac.th Abstract In this study, we examine the issue of IT investment impact on customer satisfaction which resulted from three determinants of service quality: timeliness, perceived reliability, and perceived ease of use. Empirically, we test the impact of IT investment on measurement such as responsiveness of services, reliability of services, and convenience for users which corresponding to customer satisfaction. We also conducted a survey on three government projects from the Ministry of Transportation and Department of Highways: E-exam, GPS, and GIS. Our results suggest that determinants of service quality for E-exam, GPS, and GIS have positive relationships with customer satisfaction. In addition, we found that higher IT investment could also have a positive impact on customer satisfaction. To conclude, our results illustrate the important of service quality improvement. Customer satisfaction depends heavily on the perceived level of quality delivered. The empirical results from IT related projects supported the proposition that one of the main factors creating and improving customer satisfaction is IT investments. Keywords: IT investment, service quality, customer satisfaction, Ministry of Transports Introduction Although there are many attempts to quantify the contribution of IT investment to firm performance in both theoretical and empirical studies over the last two decades, the division still persists between academic and practitioners. While returns on IT investment have been reported in many studies, practitioners seem to be less certain about its contributions. Recently, there are a number of precise measurements illustrated a positive relationship among IT investments, economic productivity, and business value across distinct measures, however, our knowledge of the specific factor driving these general results remain limited. Therefore, this study is motivated by the lack of understanding about the relationships between IT investments and firm performance measures in the literature. We believe that such a missing link may have contributed directly to the conflict findings in IT impact studies and the on-going IT productivity paradox debate (Brynjolfsson, 1993). The major purposes of this study are to better understand the overview of IT investments, and also find the answer for the question: “How the government agency should spend in order to