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Information technology is playing a key role in the rising economies of the world. Today, in the era of information technology, the world is witnessing tremendous advancements in technology every day. So, the main aim of the study is to know the impact of internal financial sources and investment in information technology on performance of firms in urban areas. A sample of 500 respondent firms from Punjab, Haryana, and Himachal Pradesh in the healthcare services and hospitality sector have been considered. To reach the target population, judgmental sampling technique has been used. Multiple regression technique has been applied to analyse the results. The study found that the independent variable investment in information technology has a positive impact on the operational performance. So, it is suggested that more and more investments in operational performance will enhance entrepreneurial performance and also help in survival and generating profits. In future, more studies can be carried out on human capital and financial performance of a firm.