Investigating the Effect of Information Systems and Decision Quality on Organizational Performance in Business Firms

Abstract

The development of information systems raised the quality of decision-making, significantly impacting businesses' organizational performance. To evaluate this impact, the current research aimed to investigate the relationship between information systems (IS) success factors, decision-making quality (DMQ), and organizational performance (OP). A quantitative research approach was adopted, and a survey was sent to 163 decision-makers who use information systems in business firms. The study model was evaluated using PLS-SEM. The study's empirical results indicated that information quality (IQ) significantly positively impacted decision-making quality (DMQ). However, system quality (SQ) did not affect decision-making quality (DMQ). Furthermore, information quality (IQ) was found to mediate the relationship between system quality (SQ) and organizational performance (OP). Finally, the decision-making quality (DMQ) was found to moderate the relationship between information quality (IQ), system quality (SQ), and organizational performance (OP). This study provided field practitioners with important recommendations and future work to evaluate the impact of information systems (ISs) impact on organizational performance (OP).