Dr. Mudathir Saad Ahmed Saad (1)

Transcription

1 The Mediation Role of Perceived Usefulness of using an Information System on the Relationship between Information Quality Dimensions and Decision effectiveness Case Study of Sudanese Commercial Banks Sector Dr. Mudathir Saad Ahmed Saad (1) Abstract The purpose of this study is to investigate the impact of perceived usefulness of an information system as mediator variable in the relationship between information quality and decision effectiveness in Sudanese commercial banks sector. The research is descriptive-correlative type and a questionnaire consisted of 32 items based on 5-point Likert-scale designed to collect the data from the decision makers of Sudanese commercial banks.220 copies of questionnaire distributed but only (68.8%) received and valid for analysis. Reliability of questionnaire obtained 0.94 using Cronbach's alpha. The content and face validity of the questionnaire determined through the viewpoints of experts in management information system & educational sciences.the data analyzed at arithmetic mean, standard deviation, coefficient, factor analysis, Pearson correlation coefficient and regression analysis by the SPSS software version The findings showed that there is a positive significant correlation between information quality and perceived usefulness of an information system also a positive significant correlation between information quality with the decision effectiveness and organization effectiveness. In addition, there is a positive significant relation between perceived usefulness of an information system with the decision effectiveness and organization effectiveness. On the other hand perceived usefulness of an information system is full mediator in the relationship between information quality and the effectiveness of decision. Finally perceived usefulness of an information system is full mediator in the relationship between information quality and organizational effectiveness. The study recommended that it is possible to test other factors that could have effect such as improvement of information system and technology and it could be applied the on other sectors. Keywords: Information Quality Dimensions, Decision Effectiveness, Organizational Effectiveness, Perceived Usefulness. Introduction The banking sector considered a backbone and a major source of financing for most businesses (Alkhatib and Harsheh, 2012), due to that the information quality dimensions are very important to banking and modern organizations in the world (Abdel-Karim and Shahin,2013). However, there are many studies on the role of information on decision making and a number of studies suggest that making correct and quality decisions depends on high information quality dimensions ( information accuracy, completeness, and consistency) (mouzhi,2015); this concept consistent with a study that showed useful information improves decision making, enhances efficiency, and provides a competitive edge to the organization (Mohanad & Shahizan Hassan,2016). There are many roles of information in an organization like good information can help the manager of an organization in respect of effective decision making. However, it is difficult to produce correct decisions without handling data or information in each activity and phase of the decision making (English,2000) depend on this finding, making effective decision means making the correct choice among several options. But to do so, it depends on an information quality available to the decision maker (Dean and Sharfman, 1996). According to technology acceptance model (TAM), perceived usefulness of an information system is the degree to which a person believes that using a particular system would enhance his or her job performance(nadim and Noorjahan,2008). Many Previous studies showed perceived usefulness of an information system has been widely recognized in the field of electronic banking (Guriting and 1. Assistance Professor of Management Information System (Saudi Arabia, Bisha University& Sudan, Kordofan University) > RJSITM: Volume: 06, Number: 05, March 2017 Page 6

2 Ndubisi, 2006; Laforet and Li, 2005; Polatoglu and Ekin, 2001; Liao and Cheung, 2002). And the use of an information system affected by perceived usefulness of information system on the organization. Significance and OBJECTIVES The major objectives of this paper are concerned with answering the following questions: 1. To what extent information quality dimensions impact the effectiveness of decision? 2. What is the relationship between perceived usefulness of an information system and the effectiveness of decision? 3. What is the relationship between information quality dimensions and perceived usefulness of an information system? 4. To what extent does perceived usefulness of an information system impact the relationship between information quality dimensions and the effectiveness of decision? Statement of the Problem This study tries to test to what extent the decision makers of Sudanese commercial banking have awareness about the benefits of an information quality dimensions on the effectiveness of decision. Given this background, the study attempts to explore the effect of the perceived usefulness of an information system as mediating variables between information quality dimensions, and effectiveness of decision. In addition, the study to test the relationship between information quality dimensions and perceived usefulness of information system, the relationship between information quality dimensions and effectiveness of decision also the relationship between perceived usefulness of an information system and effectiveness of decision. Model of the Study The model that guides this study showed in Figure[1]; the model examines the relationship between information quality dimensions and perceived usefulness (PU) of an Information System, information quality dimensions and effectiveness of decision, perceived usefulness (PU) of an Information and effectiveness of decision.finally Testing the Impact of perceived usefulness of using an information system as mediator variable in the relationship between information quality dimensions and the effectiveness of decision. Figure [1]: The Proposed Model of the Study. Information Quality Dimensions H1 perceived usefulness (PU) of an Information System H3 H2 effectiveness of Decision Independent Mediator Dependent The Hypotheses of The Study Depending on figure [1] the study aims to test the following hypotheses: H1: There is a positive relationship between information quality dimensions and perceived usefulness (PU) of an information system. H2: There is a positive relationship between information quality dimensions and effectiveness of decision. H3: There is a positive relationship between perceived usefulness (PU) of an information system and effectiveness of decision. H4: perceived usefulness (PU) of an information system mediate the relationship between information quality dimensions and effectiveness of decision. > RJSITM: Volume: 06, Number: 05, March 2017 Page 7

3 METHODOLOGY AND RESULT Method, Measure, Sample and Data Collections To collect data from statistical sample to test the hypotheses, a descriptive analysis method used and a questionnaire designed to collect the data from the sample. The questionnaire formed in two categories, the first one to decide the characteristics of the statistical sample like education, work experience, age, and gender. The second group is to test the hypotheses of the study. We paid particular attention to sampling and data collection process. The decision makers in Sudanese commercial banking sector have chosen to conduct this study. Before distributing all questioners, the formal or symbolic validity used to find the validity of data gathering. For this purpose a primary questionnaire was validate by some professors and experts. So that they comment on the questionnaire after this step the questionnaire redesigned. The Cronbach s coefficient alpha test was conducted to measure the internal consistency reliability and the result of tested as it is seen on table(1). Table(1) :Reliability Test of Questionnaire Using Alpha Cronbakh No of items Alpha Cronbakh value Information Quality Dimensions Perceived Usefulness of an information system Decision effectiveness As it is shown in the table(1) all values of alpha Cronbakh are greater than 0.6 as the result of this step, a proposal number of questionnaires distributed (220 copies of the questionnaire) and only 151 received (68.8%) and valid for analysis. Respondents were asked about information quality dimensions, perceived Usefulness of an information system and effectiveness of decision to test the impact of information quality dimensions on the effectiveness of decision when perceived Usefulness as a mediator variable. After data were gathered from the statistical sample, many statistical analysis expressions were used like Arithmetic mean, standard deviation, Alpha Cronbakh, coefficient, Factor analysis, Pearson correlation coefficient and (linear regression, Hierarchical regression ). Five point likert- type scales were used for measuring information quality dimensions as an independent variable, perceived Usefulness of an information system as middle variable and decision effectiveness as a dependent variable. Respondents were asked to evaluate levels of their variables on range 1=strongly disagree to 5= strongly agree with a middle anchor point of 3=neither agree nor disagree. Measure Three variables were measured with a scale of 32 statements, which adapted from earlier and recent studies( Jurij et al,2009, M.J. Eppler,2006, Dahab,2001, Allison et al.,2006, Carl et al. 2003) as it seen on the table(1). Table(2) : Resources of Measurements Resources of scale Measures Jurij Jaklic et al.(2009), M.J. Eppler(2006). Applicability, Timeliness Information Quality Dimensions Perceived Usefulness of an Information system Dahab (2001), ALLISON et al.(2006) Comprehensiveness, Conciseness, Clarity, Correctness, Accuracy, Consistency, accomplish tasks more,quickly,increases productivity,enhances effectiveness,makes job easier, Necessary, Useful, organizational support Decision Effectiveness Carl et al.(2003) Involvement,Consistency,Adaptability,Mission Factor Analysis Factor analysis is a useful tool for investigating variable relationships for complex concepts and it allows researchers to investigate concepts that are not easily measured directly by collapsing a large number of variables into a few interpretable underlying factors, therefore the scales were submitted to > RJSITM: Volume: 06, Number: 05, March 2017 Page 8

4 principal component analysis using SPSS and the result of analysis for any variable of the study will be shown below: Firstly: Factor Analysis For Independent (Information Quality dimensions ) All items used to measure information quality dimensions were submitted in SPSS software, these items and factor loadings presented in the table (3). Table (3): Rotated Component Matrix Of Information Quality Dimensions Item Component 1 2 if if if if if if if if if if Eigen Values Variance KMO From the table (3) it is as seen that the loading of items and the matrix came in two components and eigen values of any one of them is greater than 1.0 therefore, some items were deleted from the matrix if the item has a negative loading value or less than the cut point (0.5). Reliability measured for both components (reliability of component one=0.9, reliability of component two=0. 456) based on this result items of the first component (if1, if3, if4, if5, if6, if7, if8, if9) were used for measuring information quality dimension in Sudanese commercial banking sector. Secondly:Factor analysis for mediator variable(perceived Usefulness of an information system) The scales submitted and rotated component matrix of perceived usefulness of an information system variable presented in table (4). Table (4): Rotated Component Matrix Of Perceived Usefulness of an information system Item Component 1 b1.810 b2.848 b3.763 b4.898 b5.888 b6.881 b7.881 b8.830 Eigen Values Variance KMO.922 From table(4) it is as seen that the rotated matrix came in one component and the loading value for all items are greater than 0.5(cut point ) in addition, Eigen Values greater than one and the result > RJSITM: Volume: 06, Number: 05, March 2017 Page 9

5 (b1,b2,b3,b4,b5,b6,b7,b8) were chosen as items to measure perceived usefulness of information system in Sudanese commercial bank sector. Thirdly: Factor Analysis For Dependant (Decision Effectiveness ) 14 items to measure decision effectiveness used and the statements of scale submitted in SPSS and apply factor analysis concept.the finding of analysis shown in the next table. Table (5): Rotated Component Matrix of Decision Effectiveness Rotated Component Matrix Item Component 1 2 ef ef ef ef ef ef ef ef ef ef ef ef ef ef Eigen Values Variance KMO.909 From table(5) the rotated matrix came in two components, cut point (0.5) used and any tow items have cross loading were deleted, then the decision effectiveness variable divided into two components, the first one consist items(ef2, ef4, ef5, ef9, ef10, ef11, ef12, ef14) it's named by decision effectiveness. The second component includes items (ef3, ef6, ef7, ef8) and named by Organizational effectiveness depending on previous studies. Descriptive Analysis, Correlation and Association between of the Study From table (6) the average of the all variable is greater than the value three (default average) in addition, Perceived Usefulness of an information system of decision makers on Sudanese commercial banks it is very high also we can describe( the information quality dimension, Decision Effectiveness and Organizational effectiveness) with good in Sudanese commercial banking sector. Table (6): Descriptive Analysis of The Study Mean SD Information Quality dimensions Perceived Usefulness of an information system Decision Effectiveness Organizational effectiveness Note: All variables used a 5-point likert scale (1= strongly disagree, 5= strongly agree) > RJSITM: Volume: 06, Number: 05, March 2017 Page 10

6 Correlation and Association between the s of the Study In order to test the relation between the variables the Correlation analysis was done and the result will be shown in the next table. Table (7):Correlation Between The s Information Perceived Decision Quality Usefulness of an Effectiveness dimensions information system Organizational Effectiveness Information Quality 1.455**.638**.571** dimensions Perceived Usefulness.455** 1.434**.202* of an information system Decision Effectiveness.638**.434** 1.676**.571**.202*.676** 1 **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed). From table (7) the result of the correlation analysis demonstrated that all the variables of the study are independent from the other variables, in addition to a significantly and positively correlated with each other. Relation between Information Quality dimensions and Perceived Usefulness of an Information System The aim of this linear regression analysis is to test the first hypothesis of the study and to determine the strongly and the type of the relation. The result will be shown in the next table. Table (8): Linear Regression analysis result for relation Between Information Quality Dimensions and Perceived Usefulness of an Information System Perceived Usefulness of an Information System Beta Sig. Information Quality Dimensions ** R Square=.207, Adjusted R Square=.202,F= and Sig=0.000 The result of linear regression analysis between the dependent variable (Perceived Usefulness of an Information System) and independent variable (Information Quality dimensions) as it is seen in table (8) the result shows the model of research is statistically significant (F= and **p<0.01) and a positive significant relation between information quality dimensions and Perceived Usefulness of an Information System (Beta=0.455 and Sig. = 0.000) founded.. Relation between information quality dimensions And decision effectiveness The purpose of this linear regression analysis is to test the type of the relation between the dependent variable (information quality dimensions) and independent variable (decision effectiveness) as it is seen in table (9) the result shows the model of research is statistically significant (F= and **p<0.01). and there is a positive significant relation between the two variables (Beta=0.64 and Sig. = 0.000). Table (9): Linear regression analysis result for the relation between information quality dimensions and decision effectiveness Decision Effectiveness Beta Sig. Information Quality ** R Square=.402, Adjusted R Square=.406,F= and Sig= > RJSITM: Volume: 06, Number: 05, March 2017 Page 11

7 Relation between information quality dimensions and organizational effectiveness Table (10) shows the result of linear regression analysis between information quality dimensions and organizational effectiveness the result showed the model of is statistically significant (F= and **p<0.01). and there is a positive significant relation between information quality dimensions and organizational effectiveness (Beta=0.57 and Sig. = 0.000). Table (10): Regression analysis result between information quality dimensions and organizational effectiveness Organizational Effectiveness Beta Sig. Information Quality Dimensions ** R Square=.326, Adjusted R Square=.321,F= and Sig=0.000 Relation between perceived usefulness of information system and decision effectiveness The finding of regression in the next table will be shown the model is statistically significant (F= and **p<0.01).and there is a positive significant relation between perceived usefulness of an information system and decision effectiveness (Beta=0.43 and Sig. = 0.000). Table (11):The result of linear regression analysis for the relation between perceived usefulness of an information system and decision effectiveness. Decision Effectiveness Beta Sig. perceived usefulness of an information system ** R Square=.188, Adjusted R Square=.183,F= and Sig=0.000 Relation between perceived usefulness of an information system and organizational effectiveness The result of linear regression analysis in the next table (12) indicate the model is statistically significant (F=6.319 and **p=0.01) and there is a positive significant relation between perceived usefulness of an information system and organizational effectiveness (Beta=0.20 and Sig. = 0.000). Table (12):The result of linear Regression analysis for the relation between perceived usefulness of an information system and organizational effectiveness Organizational effectiveness Beta Sig. Perceived Usefulness ** R Square=.041, Adjusted R Square=.034,F= and Sig= 0.01 The impact of Perceived Usefulness on the relation between information quality and Decision Effectiveness To test these hypotheses, this study applied a three-step hierarchical regression recommended by Baron and Kenny (1986). The First step, the independent variable must affect the dependent variable significantly (ß1must be significant). the Second step, the independent variable should affect the mediating variable (ß2 must be significant). The Third step, mediating variable must influence the dependent variable significantly (ß3 must be significant). On the other hand, in order to establish whether the mediator is fully or partial mediating the relationship between the independent variable and dependent variable, the impact of independent variable on dependent variable controlling for mediating variable should zero or ß4 is not significant in fully mediator, while partial mediator exists once ß4 is significant but reduced. Based on the results of linear regression analysis that presented in table (8) the result of this table shows information quality has a positive significantly relation with > RJSITM: Volume: 06, Number: 05, March 2017 Page 12

8 perceived usefulness (β =0.455 and sig=0.000) in addition to that table (9) showed information quality has a positive significantly relation with decision effectiveness (β =0.638 and sig=0.000). on the other hand table (11) showed perceived usefulness has a positive significantly relation with decision effectiveness(β =0.434 and sig=0.000). Accordingly, the conditions for testing the mediation effect of perceived usefulness based on information quality and decision effectiveness fulfilled. Thus, the mediation effect of perceived usefulness based considered with the relationship between information quality, and decision effectiveness. Based on the results of hierarchical regression analysis that presented in Table(13) In model 1, the results showed that information quality significantly influenced in decision effectiveness with the beta coefficient(β = 0.638). In model 2, an extent of perceived usefulness significantly changed the variance explained by information quality as the beta value coefficient decreased (β =0.555). Concerning the type of mediation of perceived usefulness on the relationship between information quality and decision effectiveness were significantly reduced (in model 2) this indicated that perceived usefulness based fully mediated the relationship between information quality and decision effectiveness. Table (13): Hierarchical Regression : Mediation Effect of Perceived Usefulness based on the relationship between Information Quality and Decision Effectiveness Decision Effectiveness Mode 1 Mode 2 Information Quality Dimensions Beta Sig. Beta Sig. ** ** R Square F and sig= and sig=000 The impact of Perceived Usefulness of an information system on the relationship between information quality and Organizational effectiveness As it was mentioned in the previous section, three conditions of mediation must fulfill to determine if perceived usefulness of an information system mediate the relationship between information quality and Organizational effectiveness. Based on the results of Hierarchical regression analysis that presented in Table(10) the result shows information quality dimensions have a positive significantly relation with Organizational effectiveness (β =0.571 and sig=0.000) in addition to that table (8) showed information quality dimensions have a positive significantly relation with perceived usefulness of an information system (β 0.455=and sig=0.000). on the other hand table (12) showed perceived usefulness has a positive significantly relation with organization effectiveness(β =0.202and sig=0.01). Accordingly, the conditions for testing the mediation effect of perceived usefulness of an information system on the relation between information quality dimensions and organization effectiveness fulfilled. Thus, the mediation effect of perceived usefulness of an information system considered with the relationship between information quality dimensions, and organization effectiveness. Based on the results of hierarchical regression analysis that presented in Table(14) In model 1, the results showed that information quality dimensions significantly influence organization effectiveness with the beta coefficient(β = 0.571). In model 2, the extent value of perceived usefulness of an information system significantly changed the variance explained by information quality dimensions as the beta value coefficient increased (β =0.604). Concerning the type of mediation of perceived usefulness on the relationship between information quality and organization effectiveness were significantly increased (in model 2) this indicated that perceived usefulness based fully mediated the relationship between information quality and organization effectiveness. > RJSITM: Volume: 06, Number: 05, March 2017 Page 13

9 Table(14): Hierarchical Regression: Mediation Effect of Perceived Usefulness based on the relationship between Information Quality and Organization Effectiveness. Organizational Effectiveness Mode 1 Mode 2 Information Quality Dimensions Beta Sig. Beta Sig. ** ** R Square F and sig= and sig=0.336 Findings Analyzing the questions revealed the following results: According to the table (8), the result of regression analysis showed information quality dimensions have the significantly a positive relation on Perceived Usefulness of an information system (p 0.01). Also depending on the result of regression analysis showed in the table (9 ), information quality dimensions have the significantly positive relation on decision effectiveness (p 0.01). To test the type of relation between information quality and organizational effectiveness table (10) contain the result of regression analysis and showed a positive significant relation between them was found(p 0.01). The perceived usefulness has a positive significant relation with the decision effectiveness, this result showed in the table (11). According to the table(12), perceived usefulness has a positive significant relation with organizational effectiveness. To test the mediation effect of the perceived usefulness on the relationship between information quality and decision effectiveness, table (13) shows that perceived usefulness of an information system based fully mediated the relationship between information quality and decision effectiveness. Finally, table (14) showed perceived usefulness based fully mediated the relationship between information quality and organizational effectiveness. Summary of Hypothesis Testing Statement of Hypothesis Item H1 There is a positive relationship between information quality and perceived usefulness of an information system (PU). H2 There is a positive relationship between information quality and effectiveness of decision. H3 There is a positive relationship between information quality and organizational effectiveness H4 There is a positive relationship between perceived usefulness (PU) of an information system and effectiveness of decision H5 There is a positive relationship between perceived usefulness (PU) of an information system and organizational effectiveness. H6 perceived usefulness (PU) of an information system mediate the relationship between information quality and effectiveness of decision. H7 perceived usefulness (PU) of an information system mediate the relationship between information quality and organizational effectiveness. Note : means the relation is significant and positive. Remark > RJSITM: Volume: 06, Number: 05, March 2017 Page 14

10 Discussion and Conclusion The purpose of this paper is to test the impact of perceived usefulness of using an information system as mediator variable in the relationship between information quality and the effectiveness of decision in Sudanese commercial banks sector. Based on the previously stated findings and the regression analysis of data the following section shows: Information quality dimension (Comprehensiveness, Conciseness, Clarity, Correctness, Accuracy, Consistency, Applicability, Timeliness) were able to explain 40.2% variance in decision effectiveness and 32.6% in Organizational effectiveness, this result corroborates the argument and past studies that showed the relation between information quality and decisions effectiveness this finding consistent with Mohanad and Shahizan Hassan(2016) study. in addition to that making achieving the organizational effectiveness (Huner et al., 2009; Johnson, 2009; Jonas et al., 2008; Ni and Khazanchi, 2009). Furthermore, information quality dimensions explain the change on perceived usefulness of information system merely on 20.7% this result indicate that in Sudanese bank another factor can affect in this relation like information system capabilities, employee skills to using information technology tools, organization technology capability and investment. In addition to that the perceived usefulness of information system could explain the change just 18.8% on decision effectiveness also explain very little percentage changes on Organizational effectiveness (4.1%) in Sudanese commercial bank this finding, show many factors can affect in this relation like centralized of information and usability of the system. The outcomes foster show that perceived usefulness of an information system based fully mediated the relationship between information quality and organizational effectiveness, decision effectiveness. For the mediating impact, the impact of information quality became indirect after the including of perceived usefulness of an information system based as an intervening variable. This outcome proposes that Sudanese commercial banking should increase the perceived usefulness of an information system based if they want to achieve a strong impact on information quality, decision effectiveness, and organizational effectiveness relationship. References 1. Mouzhi Ge and Markus Helfert, Impact of Information Quality on Supply Chain Decisions, Journal of Computer Information Systems,2015,p Alkhatib, A., Harsheh, M. (2012), Financial performance of Palestinian commercial banks, International Journal of Business and Social Science, 3(3), Dean, J.W., Sharfman, M.P. (1996), Does decision process matter? A study of strategic decision-making effectiveness. Academy of Management Journal, 39(2), English, L.P. (2005), IQ and Muda; Information Quality Eliminates Waste. Information Management, 15(8), Mohanad and Shahizan Hassan(2016), Information Quality and Decision-making Effectiveness: A Study of Banks in Palestine, International Review of Management and Marketing, 6(S7) Nadim Jahangir and Noorjahan Begum(2008), The role of perceived usefulness, perceived ease of use, security and privacy, and customer attitude to engender customer adaptation in the context of electronic banking, African Journal of Business Management Vol.2 (1), pp Guriting P, Ndubisi NO (2006). Borneo online banking: evaluating customer perceptions and behavioural intention. Manage. Res.News. 29 (1/2), Laforet S, Li X (2005). Consumers attitudes towards online and mobile banking in China. Int. J. Bank Mark. 23 (5): > RJSITM: Volume: 06, Number: 05, March 2017 Page 15

11 9. Polatoglu VN, Ekin S (2001). An empirical investigation of the Turkish consumers' acceptance of internet banking services. International J. Bank Mark. 19(4): Liao Z, Cheung MT (2002). Internet-based e-banking and consumer attitudes: an empirical study. Info. Manage. 39(4): Huner, M., Ofner, M., Otto, B. (2009), Towards a Maturity Model for Corporate Data Quality Management. SAC 09: Proceedings of the 2009 ACM Symposium on Applied Computing, Honolulu. p Johnson, B.(2009),The forgotten key. Enterprise Information Management Institute,3(5), Jonas, E., Traut-Mattausch, E., Frey, D., Greenberg, J. (2008), The path or the goal? decision vs. Information focus in biased information seeking after preliminary decisions. Journal of Experimental Social Psychology, 44(4), Ni, J., Khazanchi, D. (2009), Information technology investment decisions under asymmetric information: A modified rational expectation model. International Journal of Information Technology and Decision Making, 8(1), > RJSITM: Volume: 06, Number: 05, March 2017 Page 16