Unravelling the integrated information systems and management control paradox: enhancing dynamic capability through business intelligence

Elbashir, Mohamed Z.; Sutton, Steve G.; Mahama, Habib; Arnold, Vicky

doi:10.1111/acfi.12644

Cited by 17 publications

(13 citation statements)

References 73 publications

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“…In the course of the discussion, an observation emerges that the value of resources appears when they are properly configured and integrated to create the capacity of an organization [ 100 ]. It is worth noting that the reconfiguration of resources alone is not a guarantee of improving a company’s results.…”

Section: Introductionmentioning

confidence: 99%

The process of developing dynamic capabilities: The conceptualization attempt and the results of empirical studies

et al. 2021

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While most researchers interested in the concept of dynamic capabilities focus their attention on analyzing how companies transform their resources to compete in their environment, the process of developing dynamic capabilities is treated as a marginal issue. Although the literature suggests various approaches to developing dynamic capabilities, they are formulated in general terms, and doubts can be raised about the links between actions. There is also a lack of empirical research indicating the links between activities in the process of developing dynamic capabilities and their influence on the effectiveness of an organization. The aim of the study is to formulate a proposal for a model of the process of developing dynamic capabilities aimed at increasing the economic effectiveness of a company and to determine the links between the activities in the model. The theoretical contribution of the paper consists in presenting a model of the process of developing dynamic capabilities aimed at increasing the economic effectiveness of the company. The results presented in the paper refer to an empirical examination of the model of developing dynamic capabilities, covering five activities: searching for opportunities; knowledge management and learning; coordination; configuration and reconfiguration; and organizational adaptation. The study also includes an examination of the possible impact the components of the dynamic capabilities building process have on a company’s performance. The study uses the survey method and data was obtained from top managers. The conclusion, based on data from 471 Polish companies, was made using structural equation modelling. The results of the empirical research suggest that the individual activities in the process of developing dynamic capabilities are interconnected, and through mutual interactions and couplings, they positively affect the economic effectiveness of an enterprise. The results indicate that searching for opportunities is the precursor, and the main factor influencing the other activities in the process, which suggests that managers should focus on improving activities in this area.

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Section: Introductionmentioning

confidence: 99%

The process of developing dynamic capabilities: The conceptualization attempt and the results of empirical studies

et al. 2021

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“…While public sector TMT still needs to focus on creating the types of knowledge culture internally that can prepare and engage operational level managers in promoting MCS innovations, TMT also needs to effectively navigate the political and institutional constraints that can inhibit their ability to The research in this study further contributes through its focus on the performance impact of BI systems at the business process level. Private sector research generally focuses on financial outcomes to assess performance, even though research is increasingly showing that the answer to the productivity paradox is assessment of performance gains as business process performance gains (Elbashir et al, 2008(Elbashir et al, , 2021. This is consistent with a recognition that a weakness at the public sector level is the failure to focus on the delivery of services as opposed to financial performance (Hoque and Adams, 2011;Arnaboldi et al, 2015;Australian National Audit Office (ANAO), 2011.…”

Section: Discussionmentioning

confidence: 94%

“…The vendor is not identified directly in accordance with the non-disclosure agreement signed at the initiation of the study and under the agreement all data was collected under a single use agreement covering the use of the customer list and with data collection being completed in 2006 as part of Mohamed Elbashir's (2006) thesis work. Beyond the thesis, the extensive data set has been used for a number of independent studies, including a focus on the relationship between business process performance and organizational performance (Elbashir et al, 2008); the value of organizational absorptive capacity in the strategic use of BI (Elbashier et al, 2011); the role of shared knowledge and BI assimilation on performance (Elbashir et al, 2013); the identification of enablers for TMT support (Lee et al, 2014); the examination of the duality of enterprise systems and BI software on business process performance (Elbashir et al, 2021); and the current study which is the lone study focusing on public sector organizations. The data used in this study have not been used in any of the other studies.…”

Section: Discussionmentioning

confidence: 99%

“…For public sector organizations, delivery on service outcomes defines return on investment (Hoque and Adams, 2011; Ross, 2011; Baird and Harrison, 2017; Modell, 2019). This perspective is not misaligned with private-sector research where the benefits of IT investment are increasingly viewed as being derived from business processes (Elbashir et al , 2008; Elbashir et al , 2021).…”

Section: Introductionmentioning

confidence: 99%

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Leveraging business intelligence systems to enhance management control and business process performance in the public sector

Elbashir

Sutton

Arnold

et al. 2021

MEDAR

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Purpose Recent research and policy reports indicate public sector organizations struggle to leverage information technology-based performance measurement systems and fail to effectively evaluate performance beyond financial metrics. This study aims to focus on organizational factors that influence the assimilation of business intelligence (BI) systems into integrated management control systems and the corollary impact on improving business process performance within public sector organizations. Design/methodology/approach The complete Australian client list was acquired from a leading BI vendor; and the authors surveyed all public sector organizations, receiving 226 individual responses representing 160 public sector organizations in Australia. Using latent construct measurement, structural equation modeling (SEM)-partial least squares is used to test the theoretical model. Findings When top management promotes knowledge creation among the organization’s operational level employees and support their activities with strong BI infrastructure, the same knowledge and infrastructure capabilities that are critical to assimilation in private sector hold in the public sector. However, public sector organizations generally have difficulty retaining staff with expertise in new technologies and attracting new innovative staff that can leverage smart systems to effect major change in performance measurement. When top management effectively manages knowledge importation from external entities to counteract deficiencies, public sector organizations effectively assimilate BI knowledge into performance measurement yielding strong process performance. Research limitations/implications When top management promotes knowledge creation among the organization’s operational level employees and support their activities with strong BI infrastructure, the same knowledge and infrastructure capabilities critical to assimilation in the private sector hold in the public sector. However, public sector organizations generally have difficulty retaining staff with expertise in new technologies and attracting new innovative staff that can leverage smart systems to effect major change in performance measurement. The research extends the theory behind organizational absorptive capacity by highlighting how knowledge importation can be used as an external source facilitating internal knowledge creation. This collaborative knowledge creation leads to affective assimilation of BI technologies and associated performance gains. Practical implications The results provide guidance to public sector organizations that struggle to measure and validate service outcomes under New Public Management regulations and mandates. Originality/value The results reveal that consistent with the philosophies behind New Public Management strategies, private sector measures for increasing organizational absorptive capacity can be applied in the public sector. However, knowledge importation appears to be a major catalyst in the public sector where the resources to retain skilled professionals with an ability to leverage contemporary technologies into service performance are often very limited. Top management team knowledge and skills are critical to effectively leveraging these internal and external knowledge creation mechanisms.

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“…Increasing business performance in a sustainable manner requires managers as well employees to be aware of their internal and external business environment. This implies the necessity for effective decision making [11], an adequate supporting information system [12], and adequate human resource management [13]. It can be argued that the era of rigid, status-quo-oriented enterprises is over, and that flexibility, rapid adaptation, and risk taking is the new norm of conducting business.…”

Section: Introductionmentioning

confidence: 99%

Modeling the Influence of Information Systems on Sustainable Business Performance and Competitiveness

et al. 2021

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The necessity for sustainable development, the coronavirus pandemic, and conducting business within the frameworks of the fourth industrial revolution—Industry 4.0 create a challenging environment where enterprises have difficulties to achieve and maintain competitiveness. Information is becoming a core construct when it comes to conducting business in the modern, globalized business environment. In this paper, the influence of information systems (IS) on sustainable business performance and competitiveness is analyzed. Additionally, the influence of human resource management (HRM) and decision making (DM) on sustainable business performance and competitiveness, as two crucial constructs in the new paradigm of conducting business, are addressed. The relations are discussed from the aspect of sustainable development and future post-pandemic business trends. The main goal is to determine the relations between the noted constructs in a transitional setting. In sum, 184 manufacturing enterprises from Republika Srpska were surveyed via a structured survey, where the focus was on quantifying and modeling the influence of IS, HRM, and DM on sustainable business performance. The results indicate that IS, HRM, DM can affect business performance in a transitional economic setting. This approach is novel, as the existing body of literature does not address all the noted influencing factors on sustainable business performance and competitiveness in a transition economy. Hence, this paper significantly contributes to the existing body of literature and provides a solid basis for future research in this domain.

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Unravelling the integrated information systems and management control paradox: enhancing dynamic capability through business intelligence

Cited by 17 publications

References 73 publications

The process of developing dynamic capabilities: The conceptualization attempt and the results of empirical studies

The process of developing dynamic capabilities: The conceptualization attempt and the results of empirical studies

Leveraging business intelligence systems to enhance management control and business process performance in the public sector

Modeling the Influence of Information Systems on Sustainable Business Performance and Competitiveness

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