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The strategic management literature emphasizes the concept of business intelligence (BI) as an essential competitive tool. Yet the sustainability of the firms’ competitive…
The strategic management literature emphasizes the concept of business intelligence (BI) as an essential competitive tool. Yet the sustainability of the firms’ competitive advantage provided by BI capability is not well researched. To fill this gap, this study attempts to develop a model for successful BI deployment and empirically examines the association between BI deployment and sustainable competitive advantage. Taking the telecommunications industry in Malaysia as a case example, the research particularly focuses on the influencing perceptions held by telecommunications decision makers and executives on factors that impact successful BI deployment. The research further investigates the relationship between successful BI deployment and sustainable competitive advantage of the telecommunications organizations. Another important aim of this study is to determine the effect of moderating factors such as organization culture, business strategy, and use of BI tools on BI deployment and the sustainability of firm’s competitive advantage.
This research uses combination of resource-based theory and diffusion of innovation (DOI) theory to examine BI success and its relationship with firm’s sustainability. The research adopts the positivist paradigm and a two-phase sequential mixed method consisting of qualitative and quantitative approaches are employed. A tentative research model is developed first based on extensive literature review. The chapter presents a qualitative field study to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. The study includes a survey study with sample of business analysts and decision makers in telecommunications firms and is analyzed by partial least square-based structural equation modeling.
The findings reveal that some internal resources of the organizations such as BI governance and the perceptions of BI’s characteristics influence the successful deployment of BI. Organizations that practice good BI governance with strong moral and financial support from upper management have an opportunity to realize the dream of having successful BI initiatives in place. The scope of BI governance includes providing sufficient support and commitment in BI funding and implementation, laying out proper BI infrastructure and staffing and establishing a corporate-wide policy and procedures regarding BI. The perceptions about the characteristics of BI such as its relative advantage, complexity, compatibility, and observability are also significant in ensuring BI success. The most important results of this study indicated that with BI successfully deployed, executives would use the knowledge provided for their necessary actions in sustaining the organizations’ competitive advantage in terms of economics, social, and environmental issues.
This study contributes significantly to the existing literature that will assist future BI researchers especially in achieving sustainable competitive advantage. In particular, the model will help practitioners to consider the resources that they are likely to consider when deploying BI. Finally, the applications of this study can be extended through further adaptation in other industries and various geographic contexts.
Traditional definitions of decision support systems emphasise their support role in individual decision making and utilise notions of rational choice. By considering…
Traditional definitions of decision support systems emphasise their support role in individual decision making and utilise notions of rational choice. By considering decisions as an organisational activity, the interpretation of decision support systems use in organisations can move beyond this technical rational understanding, to include potential political and legitimating roles for these systems. These three possible interpretations are discussed in relation to the implementation of a large decision support system in a local government context described by Dutton (1981). In its technical role, the system was used as part of a rational planning agenda. However, the system was clearly also used politically, to promote particular interests and as a lever in negotiations between various groups. Part of the appeal of the decision support system was the appearance of rationality and technical neutrality that it gave to the planning and decision making process, and the legitimation it provided with external constituents. The paper concludes that an unquestioning acceptance of the technical received view of decision support system use is limiting, and that a more reflective approach to their development, implementation and use is required.
Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).
The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.
This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.
Using a decision support system (DSS) delays the decision‐making process and commits the user to the cost of invoking the system. The existing configurations of decision support systems do not guarantee the profitability of the DSS. If the DSS generates messages that the decision maker can anticipate, then the cost and waiting time as a result of invoking the DSS will not be justified. Proposes a decision support system equipped with a knowledge‐based model that tells the decision maker, prior to invoking the DSS, whether or not it is profitable to invoke the DSS; if invoking the DSS is not profitable, then the decision maker will have to base the decision on pure managerial subjective judgement. Uses a numerical example to illustrate the work of the proposed DSS.
A decision support system (DSS) is a flexible, interactive, computerized approach intended to support administrators in their decision making activities and which is…
A decision support system (DSS) is a flexible, interactive, computerized approach intended to support administrators in their decision making activities and which is capable of providing direct, personal support for complex, managerial decisions. This paper presents an overview of DSS's major characteristics which can integrate the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions. Following a discussion of its capabilities, the various components of a DSS (database, model base, hardware and user‐system interface) are examined as well as the development tools needed. Examples of the applications of DSSs in two universities provide insight into the benefits a DSS can bring to educational administration. Finally, the paper considers various development and implementation issues pertaining to a decision support system in academic administration.
IT support for marketing planning can aid in the use of marketing tools, facilitate group planning, and support moves towards continuous planning based on a live marketing…
IT support for marketing planning can aid in the use of marketing tools, facilitate group planning, and support moves towards continuous planning based on a live marketing model of the business. But, amongst other factors, achieving these benefits depends on the style of support provided by the system. After a review of relevant decision support system (DSS) literature, describes here the findings relating to support style from a qualitative evaluation of a system named EXMAR. The findings support Little’s classic rules of “decision calculus”, such as the importance of ensuring that managers understand and can control the system, rather than the objective influenced by management science of prescribing an optimal recommendation. Also emphasises the role of systems in enhancing mutual understanding in a cross‐functional planning team, and hence in building commitment to the resulting plan.
Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption…
Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption behavior of E-payment systems that employ smart card technology becomes a research area that is of particular value and interest to both IS researchers and professionals. However, research interest focuses mostly on why a smart card-based E-payment system results in a failure or how the system could have grown into a success. This signals the fact that researchers have not had much opportunity to critically review a smart card-based E-payment system that has gained wide support and overcome the hurdle of critical mass adoption. The Octopus in Hong Kong has provided a rare opportunity for investigating smart card-based E-payment system because of its unprecedented success. This research seeks to thoroughly analyze the Octopus from technology adoption behavior perspectives.
Cultural impacts on adoption behavior are one of the key areas that this research posits to investigate. Since the present research is conducted in Hong Kong where a majority of population is Chinese ethnicity and yet is westernized in a number of aspects, assuming that users in Hong Kong are characterized by eastern or western culture is less useful. Explicit cultural characteristics at individual level are tapped into here instead of applying generalization of cultural beliefs to users to more accurately reflect cultural bias. In this vein, the technology acceptance model (TAM) is adapted, extended, and tested for its applicability cross-culturally in Hong Kong on the Octopus. Four cultural dimensions developed by Hofstede are included in this study, namely uncertainty avoidance, masculinity, individualism, and Confucian Dynamism (long-term orientation), to explore their influence on usage behavior through the mediation of perceived usefulness.
TAM is also integrated with the innovation diffusion theory (IDT) to borrow two constructs in relation to innovative characteristics, namely relative advantage and compatibility, in order to enhance the explanatory power of the proposed research model. Besides, the normative accountability of the research model is strengthened by embracing two social influences, namely subjective norm and image. As the last antecedent to perceived usefulness, prior experience serves to bring in the time variation factor to allow level of prior experience to exert both direct and moderating effects on perceived usefulness.
The resulting research model is analyzed by partial least squares (PLS)-based Structural Equation Modeling (SEM) approach. The research findings reveal that all cultural dimensions demonstrate direct effect on perceived usefulness though the influence of uncertainty avoidance is found marginally significant. Other constructs on innovative characteristics and social influences are validated to be significant as hypothesized. Prior experience does indeed significantly moderate the two influences that perceived usefulness receives from relative advantage and compatibility, respectively. The research model has demonstrated convincing explanatory power and so may be employed for further studies in other contexts. In particular, cultural effects play a key role in contributing to the uniqueness of the model, enabling it to be an effective tool to help critically understand increasingly internationalized IS system development and implementation efforts. This research also suggests several practical implications in view of the findings that could better inform managerial decisions for designing, implementing, or promoting smart card-based E-payment system.
Decision making and the nature of decisions themselves are changing with the introduction of new information technology (IT)‐based systems in the construction industry…
Decision making and the nature of decisions themselves are changing with the introduction of new information technology (IT)‐based systems in the construction industry. The use of IT systems relates to and can induce changes in business processes within firms as well as interorganizational project processes between firms. In the USA, some of the world's largest hardware and software producers are developing new generations of systems. The market for such systems is potentially large, and these vendors work in close proximity to powerful engineering and construction organizations as well as leading research establishments. It is likely that some of these systems will become de facto standards. For this and other reasons of industrial competitiveness, developments in US IT decision support systems are of interest to practitioners and researchers around the world. The present paper presents the findings of a UK Department of Trade and Industry Expert Mission to assess the development and use of IT systems in the US construction industry. The mission team included seven members, each with specialist knowledge of different aspects of IT development and implementation. The team visited 18 leading organizations where detailed interviews and seminars were conducted during a 2‐week period. The present paper highlights questions for researchers and systems developers. The main findings indicate fundamental changes to the timing, sequence and hierarchy of decision making.
Conceptualizes the impact of information technology on marketing decision making. Argues that developments in information technology affect the performance of marketing…
Conceptualizes the impact of information technology on marketing decision making. Argues that developments in information technology affect the performance of marketing decision‐makers through different routes. Advances in information technology enhance the possibilities of collecting data and of generating information for supporting marketing decision making. Potentially, this will have a positive impact on decision‐making performance. Managerial expertise will favor the transformation of data into market insights. However, as the cognitive capabilities of marketing managers are limited, increasing amounts of data may also increase the complexity of the decision‐making context. In turn, increased complexity enhances the probability of biased decision processes, thereby negatively affecting decision‐making performance. Marketing management support systems, also being the result of advances in information technology, are tools that can help marketers to benefit from the data explosion. The analysis leads to the expectation that the combination of marketing data, managerial judgment, and marketing management support systems will be a powerful factor for improving marketing management.
Presents a foundation for the development of marketing decisionsupport systems (MDSS). Argues that traditional management informationsystems typically follow a sequential…
Presents a foundation for the development of marketing decision support systems (MDSS). Argues that traditional management information systems typically follow a sequential flow through analysis, design, and implementation; MDSS involves a developmental approach emphasizing iteration and evaluation through the various stages. Surmises that MDSS offers marketing managers the advantages of an interactive system to supply them with useful information to help improve decision making.