Dr. Yazan Khaled AlZawahreh
Abu Dhabi University – UAE
A continuing circulation on IT innovation, mixed with new enterprise practices then super administration choices are reworking the road we operate business, the pathway revenues are generated, and the pathway customers receive products and services. The growth concerning enterprise-wide facts systems to that amount supply incredibly rich facts according to managers regarding customers, suppliers, however rather bear online, nearly instant access to the essential statistics those need to accomplish correct or timely selections to that amount affect the corporation performance.
Information Technology is a powerful force in today’s global society. The advent of computers and Information Technology (IT) has been the single massive drive influencing organizations during past few decades. Information Technology is revolutionizing all the living ways. No doubt, it has given a new meaning to the word “Convenience” (Shaukat, et al., 2008). Information Technology has drastically changed the business landscapes, and the word “IT” has become the “Catchword” of the modern life today.
Information Technology has become, within a very short time, one of the basic building blocks of modern industrial society. The effective use of IT is an essential element of competing in a fast-paced, knowledge-based economy.
Information Technology is the major contributor to the progress of the developed countries. The rapid growth of the personal computer industry, substantial decreases in computer unit cost, and simultaneous increases in computer capabilities have made the vast amount of information readily available to individuals in organizations (Long and Long, 1999; Vasudevan, 2003; Salhieh and Abu-Doleh, 2007).
The goal of every management information system (MIS), in any organization, is to improve job performance and this performance efficiency is only achieved when IT is accepted and used warmly by the concern employees in organizations (Venkatesh and Davis, 2000).
2. PROBLEM STATEMENT
Most of the universities in Jordan use Management information systems in different ways along up ten years ago because they recognized the critical added value that can get from merging MIS in business processes, so the main problem of this study is to answering the following question:
- What extent MIS has an influence on universities performance?
3. STUDY OBJECTIVES
Contemplating the study problem, and its ultimate purpose, the following specific objectives could be generated:
1. What is the relationship between MIS and universities performance from academic people?
2. What is the impact of MIS on universities performance from academic people?
4. HYPOTHESES AND STUDY MODEL
This study has two main hypotheses:
4.1. There is a significant relationship between MIS and universities performance.
4.2. MIS have a significant impact on universities performance.
5. The Methodology of the study
5.1 Population and Sample size:
The target population for this study will be all the business faculties deans and departments heads in Jordanian universities, individuals whom they represent both academic and managerial positions, and whom they are closely related to MIS.
This study will target the Jordanian’s public and private universities that include business faculties (21 universities), A sample of (15) universities will choose randomly from the targeted universities, 120 questionnaires will distribute (8 questionnaires for each university).
5.2 Data Collection:
Secondary data will be used to collect the data based on the findings of published papers, articles, books, prior studies, and the World Wide Web. The primary data collection will carry out using a self-designed the questionnaire, this adopted instrument comprises will have three sections; the first section covers the demographic information (Gender, Age, Academic Rank, Experience, and Current Position).
The second section contains (16) items measuring Management Information Systems, the third section measures organizations performance through (16) items also, Five Likert scales will be used to score the responses.
5.3. Data Analysis Methods:
Statistical Package for Social Sciences (SPSS) will used to analyze the data. Descriptive techniques such as; frequencies, percentages, means, standard deviation (Std.), and coefficient of variation (CV) will used to describe the variables. Spearman correlation and simple regression analysis will also use to test the hypothesis of the study.
6 Literature Review
6.1. Management Information Systems (MIS)
We square measure within the inside of a fleetly moving stream of technology and business innovations that are remodeling the worldwide business landscape. A completely new web business culture is rising with profound implications for the conduct of business. we are able to see this daily by perceptive however business individuals work victimization high-speed web connections for e-mail and knowledge gathering, moveable computers connected to wireless networks, And hybrid devices to a progressively mobile and international workforce.
We have all return to expect online services for buying merchandise and services, we have a tendency to expect our business colleagues to be offered by e-mail and telephone, and that we expect to be ready to communicate with our vendors, customers, and staff any time of day or night over the net , therefore data technology can create a distinction for you as a manager associated with a worker throughout your career, and this well reinforce businesses competitive advantage within the marketplace to realize a position over different businesses that are seeking an equivalent customers. This can be why data systems therefore vital.
A system is a collection of interrelated components that function together to achieve some outcomes (Satzinger et al, 2002). An information system is a collection of interrelated components that collect, process, store, organize, retrieve, manage and provide information to support business activities, decision making, and performance in an organization (Laudon and Laudon, 2007; O’Brien, 2003). In this meaning, it differs from information technology that refers to the products, methods, inventions, and standards that are used for the purpose of producing information (Kroenke, 2007). Information systems play an important role in helping managers to analyze problems, visualize complex subjects, and create new products (Laudon and Laudon, 2008).
6.1.1. Components of Information Systems
The 5 basic parts of data system are an element, software, data, procedures, and people. These 5 parts are the gift in each data system from the only to the foremost advanced. These 5 parts are symmetrical. The outer parts, hardware, and folks are each actor; they’ll take actions. The code and procedure parts are each set of directions: code is instructions for hardware, and procedures are directions for folks. Finally, knowledge is that the bridge between the pc aspect and also the human aspect (Kroenke, 2007).
6.1.2. Major Types of Information Systems
The main categories of information systems serve different organizational levels: Operational level systems that support operational managers by keeping track of the elementary activities and transactions of the organization. Management level systems serve the monitoring, controlling, decision-making, and administrative activities of middle managers.
Strategic-level systems help senior management tackle and address strategic issues and long-term trends, both in the firm and in the external environment. Laudon & Laudon (2008) divides systems to four major specific types that correspond to each organizational level:
- Transaction processing systems which is a computerized system that performs and records the daily routine transactions necessary to conduct business.
- Management information systems that serve the management level system of the organization, providing managers with reports and often online access to organization’s current performance and historical records.
- Decision support systems. They also serve the management level system of the organization, and help managers make decisions that are unique, rapidly changing, and not easily specified in advance.
- Executive support systems. Senior managers use support systems to help them make decisions; they serve the strategic level of the organization. They address non routine decisions requiring judgment, evaluation, and insight because there is no agreed-on procedure for arriving at a solution.
Under the purpose of this study management information systems defined as a computer based information systems, that makes information (in different types) available to users with similar needs. The information provided by management information systems describes the organization or one of its major systems in terms of what has happened in the past, what is happening now, and what is likely to happen in the future.
6.2. Organizations Performance
Performance is a measure of results achieved by individual, group, and organization. Organization performance is defined as a continuous and action oriented with focus on improving performance by using objective, standards, appraisal, and feedback (Ababneh, 2008). Organizations performance comprises the actual output or results of an organization achievement as measured against its intended goals and objectives. Organizations adopt performance measurement because it creates accountability, provides feedback to operations, and result in more effective planning, budgeting and evaluation (Ammons, 2001).
The performance as stated by Hunger and Wheelen (2007) is an end results of an activity, and an organizational performance is accumulated end results of all the organization’s work processes and activities. Managers measure and control organization performance because it leads to better assessment for management, to increase the ability to provide customer value, to improve measures of organizational knowledge, and measure of organizational performance do have an impact on an organization’s reputation.
When the performance of the organization is assessed, the past management decisions that shaped investments, operations and financing are measured to know whether all resources were used effectively, whether the profitability of the business met or even exceeded expectations, and whether financing choice were made prudently (Shaukat et al., 2008).
Organizational performance is conducted to support decisions concerning whether program or project should be continued, improved, expanded, or curtailed (Rossi et al., 1999). The traditional approach to performance measurement is based on productivity measures, including such measures as service inputs and outputs’ (Holmes et al., 2006). In recent years, many organizations have attempted to manage organizational performance using the balanced scorecard methodology where performance is tracked and measured in multiple dimensions.such as: financial performance (e.g. shareholder return)-customer service-social responsibility (e.g. corporate citizenship, community outreach) – employee stewardship. As this study focuses on measurement of efficiency and effectiveness part of organizations performance, therefore, these concepts are elaborated in detail.
In the academic literature, efficiency is defined by many ways, Witzel (1998) looks at the origin of the term and finds that it has two meanings: technical efficiency, or ensuring that systems and process work to their optimal level, and total efficiency, or ensuring that the organization as a whole is fit to meets its goals. Earl (1996) says “Efficiency is a minimum utilization of resources and getting maximum output”. McClenahen (2000) defines effectiveness “extent to which an organization realizes its goal”. Oz (2002) defines effectiveness, as the degree to which a goal is achieve. According to Robbins and Coulter (2003) “Effectiveness is doing the right things” to achieve organization goal.
6.3. Measuring Impact of Information System on Organizations Performance.
As Walrad and Moss (1993) state that efficiency and effectiveness do not means the same thing. Often one can have one, or the other, but not both (Unless one is lucky or one want to spend a lot of money). Being efficient means that one spends less time on something, one spends less money on something or one spends less efforts (or number of workers) on something. Being effective means that one does his job well. In other words, the output (finished product) is of high quality. It is a rare and delightful occasion where a solution to a problem is both efficient and effective; one usually has to decide which he prefers, because one usually cannot have both.
In an IT context when we measure the effectiveness, we basically measuring the capacity of the outputs of information systems or an IT application to fulfill the requirements of the company, and to achieve its goals. In the same IT context efficiency is the measurement that how cheaply can you get things done, and are the people to whom you provide IT services (the stakeholders) satisfied with the level of services being delivered? And does it reduce the operational expenses?
Various studies have been undertaken to measure the impact of IT on management performance (efficiency and effectiveness) of business organizations using different performance indicators, which are considered key factors. These variables capture all activity levels, performance measures and common to all units, and cover the range of resources used. These variables include income, customer satisfaction, supplier/customer links, and company image, job interest of employees, stakeholders’ confidence, and interoffice links. Many researchers have investigated the impact of IT on incomes/profits of the companies, and found positive impact. While other researchers have seen the increase/decrease in above qualitative factors after implementation of IT. They have concluded that IT has ultimately increased company image, job interest of employees, stakeholder’s confidence, interoffice link etc. (Shaukat et al., 2008).
7. REVIEW OF PREVIOUS STUDIES
Study of Chapmana and Kihnb (2008) aimed to measure the effect of Information systems resources and capabilities on firm performance. The literature has demonstrated the complex relationship between information system integration approaches. In this study, they begin their analysis by focussing on just one aspect of information system integration, namely in terms of data architecture, commonly referred to as the single database concept.
They argue that whilst this particular aspect of integration should be related to perceived system success, the variety of ways in which information might be drawn on in practice means; it provides no strong basis for predicting a link to business unit performance. They used Two types of bureaucracy: Enabling and coercive. They argue that the level of information system integration fosters the four design characteristics that make up an enabling approach to management control. Each of these in turn is related to both perceived system success and business unit performance.
Ravichandran and Lertwongsatien (2005) draw on the resource-based theory to examine how information systems (IS) resources and capabilities affect firm performance. A basic premise is that a firm’s performance can be explained by how effective the firm is in using information technology (IT) to support and enhance its core competencies. In contrast to past studies that have implicitly assumed that IS assets could have direct effects on firm performance, this study draws from the resource complimentarilyarguments and posits that it is the targeted use of IS assets that is likely to be rent-yielding.
They develop the theoretical underpinnings of this premise and propose a model that interrelates IS resources, IS capabilities, IT support for core competencies, and firm performance. The model is empirically tested using data collected from 129 firms in the United States . The results provide strong support for the research model and suggest that variation in firm performance is explained by the extent to which IT is used to support and enhance a firm’s core competencies. The results also support the proposition that an organization’s ability to use IT to support its core competencies is dependent on IS functional capabilities, which, in turn, are dependent on the nature of human, technology, and relationship resources of the IS department.
Garg et al., (2005) analyzed data of one hundred studies met their inclusion criteria about decision support systems in hospitals. The number and methodological quality of studies improved over time. They found that DSS improved practitioner performance in 62 (64%) of the 97 studies assessing this outcome, including 4 (40%) of 10 diagnostic systems, 16 (76%) of 21 reminder systems, 23 (62%) of 37 disease management systems, and 19 (66%) of 29 drug-dosing or prescribing systems. Fifty-two trials assessed 1 or more patient outcomes, of which 7 trials (13%) reported improvements. Improved practitioner performance was associated with DSSs that automatically prompted users compared with requiring users to activate the system (success in 73% of trials vs. 47%; P = .02) and studies in which the authors also developed the CDSS software compared with studies in which the authors were not the developers (74% success vs. 28%; respectively, P = .001).
Conclusions Many DSSs improve practitioner performance. To date, the effects on patient outcomes remain understudied and, when studied, inconsistent.
Study of Bharadwaj (2000) titled “The resource-based view of the firm attributes superior financial performance to organizational resources and capabilities”, This study develops the concept of IT as an organizational capability and empirically examines the association between IT capability and firm performance. Firm specific IT resources are classified as IT infrastructure, human IT resources, and IT-enabled intangibles. A matched-sample comparison group methodology and publicly available ratings are used to assess IT capability and firm performance. Results indicate that firms with high IT capability tend to outperform a control sample of firms on a variety of profit and cost-based performance measures.
8. STATISTICS ANALYSIS AND HYPOTHESIS TESTING
8.1. Demographic Profile
The sample was divided between males (96.4%) and females (3.6%), 94% of the respondents were between 30 and less than 50 years of age; 8.3% were full professor, 20.2% associated professors, and 71.4% were assistant professors; 59.5% of the respondents were between 5 and less than 10 years of experience; and 20.3% of the respondents were in dean position, while 53.6% were departments heads. Table (1) shows a detailed descriptive statistics of the respondent’s demographics (gender, age, academic rank, experience, and current position).
TABLE 1. DEMOGRAPHIC PROFILE OF STUDY (n = 84)
8.2. Study Results Description
The study questions related to and the level of performance The mean, standard deviation, and coefficient of variation (CV) of management information systems factors (independent variable) (dependent variable) are summarized in table (2) and (3).
8.2.1. Management Information Systems Factors
Table 2 on next page shows the results that represent management information systems factors.
126.96.36.199. Technological Factors
Examination of the mean value listed in table (2) reveals that, the most important items in technological factors as indicated by the respondents were: providing updated software for implementing the organizations work (4.43), the commitment for providing personal computers for all employees (4.43). the interest in computerizing works and operations (4.37), the contribution of management information systems in getting the required information in suitable time (4.31), using the available website to communicate with external environment (4.27), developing and continuously updating database that support organizations activities (4.24), The results also shows that the less important items in technological factors in terms of mean value were: availability and accessibility of knowledge base (3.14), electronic communication with customers, suppliers, and employees between each other (2.86), and the interested in data and networks security (2.42). The standard deviation for technological factors lies between (0.42-0.80), while the coefficient of variation lies between (0.14-0.26).
TABLE 2. THE RESULTS OF THE MANAGEMENT INFORMATION SYSTEMS FACTORS
188.8.131.52. Structural Factors
Based on mean values the results show that the most important items were: the organizational structure and cultural environment that encourage the use of management information systems (4.47), and high management believable in the management information systems importance (4.45). The results also show that the less important items in structural factors were: the organizational structure that simplify the exchange of knowledge and information (2.86), and the procedures and rules that simplify the work of management information systems (2.77). The standard deviation lies between (0.65-0.83), while the coefficient of variation lies between (0.15-0.28).
The mean values in the same table show that the most important item in people factors was: organizations commitment to train and qualify employees to use management information systems (4.53). While the less important items were: adopting computer usage capability as a criteria in employment selection process (2.17), and having specialists in management information systems (1.94). The standard deviation lies between (0.46-0.82), while the coefficient of variation lies between (0.18-0.31).
In comparison between three groups of management information systems factors, it is obvious that the most important factors were: the technological factors (3.83) that represent the information technology (IT) side for the management information systems, this may be because management information systems are mostly depend on IT components (software, hardware, database, networks, ..etc) to work effectively. The second group was: structural factors (3.64) which represent the most important element in internal environment for all the organizations, which could be used to support the process of transformation from manual to electronic (computer based management information systems). Finally, the results indicated that the people factors were the less important factors (2.88) except the organizations commitment to train and qualify employees to use management information systems, interpreted by top management commitment to the importance of training and qualifying employees to use MIS as indicated earlier.
8.2.2. Organizations Performance
Table (3) shows the results that represent to what extent MIS factors improve organizations performance, and it appeared as follow:
TABLE 3. THE RESULTS OF PERFORMANCE FACTORS
184.108.40.206. Performance Effectiveness
Based on mean value the results show that the most important items were: accelerate the process of deliver the products and services to customers (4.46), identifying market orientation and customer needs (4.45), introduce the support and information for the customer (4.43), increasing the innovation degree for the employees (4.37), speed in achieving the required works (4.35), and discovering new markets or market segments (4.28). The less important items in terms of mean value were: increasing the dependence on teamwork (3.32), and increasing the degree of delegation authority (2.88). The standard deviation lies between (0.55-0.72), while the coefficient of variation lies between (0.12-0.22).
220.127.116.11. Performance Efficiency
Examination of the mean value listed in Table (3) reveals that the most important items were: inventory minimization (4.55), productivity improvement (4.53), resources controlling (4.53), introduced services quality improvement (4.5), and work flexibility maximization (4.48). the less important items were: cost minimization, and quality improvement (3.36), controlling operating cost (3.29), and managerial levels minimization (3.27). The standard deviation lies between (0.63-0.87), while the coefficient of variation lies between (0.16-0.21).
8.3. Hypotheses Testing
H1: There is a significant correlation between management information systems and organizations performance. Table 4. indicates to the Correlation of MIS factors and Organizations performance.
TABLE 4. CORRELATION OF THE MIS FACTORS AND ORGANIZATIONS PERFORMANCE (O P)
**. Correlation is significant at the .01 level (2-tailed).
This output indicates that there is a strong positive significant correlationship at (P 0.05) between MIS factors and organizations performance, which implies that the higher the management information systems, the higher the organizations performance at (r = 0.86).
H2: There is a significant impact for MIS on organizations performance.
TABLE 5. REGRESSION FOR MIS-PERFORMANCE
a. Dependent Variable: O P
Table (5) shows that MIS explains (73%) of the variation in the organizations performance (as indicated by the R-Square value), and significant at (P 0.01), in addition, the value of Beta ( =0.429, P 0.05). This is enough to establish a cause – effect relationship between MIS and organizations performance, so second hypothesis is accepted.
9.1. Management information system variables (technological factors, organizational factors, and people) are provided in high percentages with a mean (3.64, 3.83) receptively but the abundance of people traits are low with a mean equal (2.88) compared with the expected mean which is (3).
9.2. The results indicate that the effectiveness level for the information systems was high so the mean was (3.45).
9.3. The level of organizations Performance (Performance Effectiveness and Performance efficiency) was high with a mean equal (4.1).
9.4. There is significant statistical relationship between the information system variables and the organizations Performance at the confidence (P 0.05).
9.5. The study revealed that information systems have a significant statistical impact on organizations Performance and explains (73%) of the variation in the organizations performance.
Consequence to the findings, this study recommends the following:
10.1. Jordanian universities are highly encouraged to develop a clear strategy for management information systems in order to improve its performance, and benefit more from its available capabilities.
10.2. Top management of the Jordanian universities are invited to adopt a participative philosophy of knowledge-sharing by exchanging all the suitable information, and experiences that can contribute in highly performance development, this is could be done by developing a common network between each other.
10.3. Jordanian universities is extremely encouraged to offer more scholarships or at least to offer more flexible work schedule to people (academic and/ or non-academic employees) who have the willingness to continue their higher education, that will leads to better performance.
10.4. Management of Jordanian universities should develop an internal database to insure distribution of actual, accurate, reliable, relevant, and completeness information among employees, which can lead to more performance effectiveness and efficiency.
10.5. The current study examined the perception of academic people. The opinion of the non-academic is also important in clarifying the role of management information systems in organizations performance; therefore, future research needs to examine their opinion by conducting a survey or in depth interviews with key employees of the Jordanian universities.
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