You are on page 1of 4

The Effect of Management Information System on Organizational

Performance: A Survey Study at Missan Oil Company in Iraq.


Abstract
The purpose of this research to examine the relationship between Management Information
System (MIS) and organisational performance at Miss an Oil Company in Iraq. The system was
largely able to process data from collection to processing. It was impersonal, requiring everyone
to choose the data that was processed, selected and used for their requirements. MIS is different
for people in the two firms who participated in the same work. The quantitative method used the
questionnaire-survey and structural equation modeling (SEM). A total of 250 questionnaires was
distributed and a high rate of return (87.6%) has been achieved. After initial data screening, 201
responses were utilized to analysis the final data. The results of many researchers have indicated
a positive relationship between system quality, service quality, use of system and organisational
performance directly or indirectly. The overall study findings I can suggested that information
quality, user satisfaction and net benefits have a positive influence on organisational
performance.

Introduction
MIS is a generic term for the computer systems in an organization that provides information for
its business processes as it is utilized to refer to individuals who manage these systems.
Typically, the term "MIS" or "MIS department" is used by large organizations to refer to a
central or centrally coordinated system of computer experience and management, predominantly
involving central computer systems, but also involving the full network of computer resources of
the company. Organizations have heavily invested in information systems because they seek to
maintain their competitiveness in order to remain in the market (Thomas, 2008). As far as the
accelerated pace of technological developments in the field of production is concerned, there has
also been an evolution in the means of communication and transmission of information. Thus,
growing competitive organizations have been forced to take quick and effective decisions
thereby resulting to the effectiveness of the organisational performance (Belkur, Mehta, Shafter,
& Amar, 2017). The foremost concept of MIS was to deal with data from the company and
submit it at regular intervals in the form of reports. The system was largely able to process data
from collection to processing. It was impersonal, requiring everyone to choose the data that was
processed, selected and used for their requirements.

Methodology
The researchers adopted the probability sampling in order to make a generalization of the
findings of study method utilizing a sample of respondents. Among several types of probabilistic
sampling, the researchers choose random sampling as the sampling method for the current
research (Fraenkel, Wallen, & Hyun, 2015). Accordingly, the sample size for a population of
approximately 298 is 169. The sample size of the current study will be 250, for it to be
considered as adequate and satisfactory to yield a confidence level of 95% with a 5% sampling
error.

Critiques
Contra version: there is problem in data collection and it’s not properly gathered by the
researcher’s. For example: In this research, although 250 questionnaires were distributed but
only 219 questionnaires were returned during the data collecting process. Therefore, 31
questionnaires are not collected it’s already wasted this indicates distortions in relevant of
information’s. This represents a response rate of 87.6%. After the initial data filtering process,
201 completed questionnaires were selected. The employee profile of the 201 respondents is
illustrated in Table 4 which shows that there are more male employees (77.1%) than their female
counterparts (22.9%).
In this research also the researchers not recommended to the current and to the future results and
findings of the studies. They also not discussed the research gaps and how to solve the issues.

Strength
The researcher clearly discussed about the relationships between MIS and organizational
performances. Such as MIS is a set of interconnected components that collect, retrieve, store,
process and distribute information to support decision making for administrators in the corporate
sector (Gupta, 2011). According to AlMamary, et al, (2014), MIS is one of the most significant
accomplishments in the area of managerial business, which seeks to supply reliable, exact,
relevant and complete information to directors towards increasing the organisational
performance in firms. They also discussed about
a. Customer Perspective,
b. Internal Process Perspective
c. Learning and Growth Perspective and such likes.

Finding
The findings showed that all the values are within the accepted range (Byrne, 2001). The
measurement model was tested in two steps. First, all measurement models were examined
individually with the latent constructs of system quality, information quality, service quality, use
of system, user satisfaction, net benefits and organisational performance.

Result
MIS indicators, namely information quality, user satisfaction and net benefits are directly linked
with the organisational performance. The results suggested that items SQ31, SQ4, US1, NB4,
CP1, CP4, IP2, IP4 and LG1 were found to have unacceptable low factor loadings of less than
0.5. Consequently, these factors were dropped from the analysis. Then, all the measurement
models were tested jointly till fruition the model fitness and validity and reliability issue.
Conclusion
The system was largely able to process data from collection to processing. The findings denote
that all the constructs have sufficient discriminant validity as the square root of AVE is higher
than the inter-construct correlation of each variable and the values of inter construct are minus
0.85. It means the findings provide enough evidence of the constructs discriminant validity. The
results of many researchers have indicated a positive relationship between system quality,
service quality, use of system and organisational performance directly or indirectly such as Agu
et al., (2017); Afandi, (2017); Ndlovu, (2015); Munirat et al., (2014); and Kehinde & Yusuf,
(2012). The overall study findings suggested that information quality, user satisfaction and net
benefits have a positive influence on organisational performance. Whilst system quality, service
quality, use of system have a negative relationship with organisational performance at Missan
Oil Company. The flow information taken vertical, horizontal and diagonal so, the information
management system requires to insight about that effects to the organizational performance.

References
[1] Adekeye, A. (1997). The importance of management information systems. Library Review,
46(5), 318–327. https://doi.org/10.1108/0024253971017 8452
[2] Afandi, W. S. (2017). Management information systems and their impact on job
performance among employees in the private sector : SAUDI Telecommunications companies,
164(11), 29–37. [3] Agu, P., Ugwu, J., & Igwegbe, D. (2017). Effect of Management
Information System on Organizational Performance : a Study of 7Up Bottling Company Enugu.
NG-Journal of Social Development, 6(1), 1–8.
[4] Ajayi, I. A., & Omirin, F. F. (2007). The Use of Management Information Systems (MIS) In
Decision Making In The South-West Nigerian Universities. Educational Research and Review,
2(5), 109–116. Retrieved from http://www.academicjournals.org/ERR
[5] Al-mamary, Y. H., Shamsuddin, A., & Aziati, N. (2014). The Relationship between System
Quality , Information Quality , and Organizational Performance. International Journal of
Knowledge and Research in Management & E-Commerce, 4(3), 7– 10.
[6] Al-Mamary, Y. H., Shamsuddin, A., & Aziati, N. (2013). The Impact of Management
Information Systems Adoption in Managerial Decision Making : Management Information
Systems, 8(4), 010–017.
[7] Al-Mamary, Y. H., Shamsuddin, A., & Aziati, N. (2014). Factors Affecting Successful
Adoption of Management Information Systems in Organizations towards Enhancing
Organizational Performance. American Journal of Systems and Software, 2(5), 121–126.
https://doi.org/10.12691/ajss-2-5-2
[8] Al-Mamary, Y. H., Shamsuddin, A., & Aziati, N. (2015). The Pilot Test Study of
Relationship Between Management Information Systems Success Factors and organizational
performance at Sabafon Company in Yemen. International Journal of U-& E-Service, Science &
Technology, 8(2), 337–346. https://doi.org/10.14257/ijunesst.2015.8 .2.32
[9] Al-Moumen, M. M. H. A. (2009). Developing Iraq’s Oil Industry to Maximize Government
Net Revenues. Stanford University.
[10] Al-Shukri, A. Y. (2013). National Development Plan 2013-2017. Baghdad.
[11] Allour, K. F. (2010). A research study on the relationship between

You might also like