Master Of Business Administration

The Effect of Management Information System Implementation

Factors on Organizational Performance: A Case of Abbhawa

Trading PLC.

By

YORDANOS BERHE

ID: MBA0030/15

Supervisor

REDAE K. (PhD)

January 2024
TABLE OF CONTENTS
TABLE OF CONTENTS ......................................................................................................... i
LIST OF ABBREVIATIONS ..................................................................................................iii
CHAPTER ONE .................................................................................................................... 1
1. INTRODUCTION .......................................................................................................... 1
1.1. Background of the study ......................................................................................... 1
1.2. Problem statement .................................................................................................. 2
1.3. Research questions ................................................................................................. 3
1.4. Objective................................................................................................................ 3
1.6. Significance of the study ......................................................................................... 4
1.7. Scope of the study ................................................................................................... 4
1.8. Limitations of the study .......................................................................................... 4
1.9. Organization of the study........................................................................................ 4
CHAPTER TWO ................................................................................................................... 6
2. LITERATURE REVIEW ................................................................................................ 6
2.1. Theoretical framework ........................................................................................... 6
2.1.1. Management information systems (MIS) ............................................................. 6
2.1.2. Information systems (IS) and information technology (IT) ................................... 7
2.2. MIS implementation ............................................................................................... 7
2.3. Implementation challenges in Ethiopia .................................................................... 8
2.4. Organizational performance ................................................................................... 9
2.5. Empirical work .................................................................................................... 10
2.6. Conceptual framework ......................................................................................... 11
2.7. Synthesis of the literature review ........................................................................... 11
CHAPTER THREE ............................................................................................................. 13
3. RESEARCH METHODOLOGY ................................................................................... 13
3.1. Introduction ......................................................................................................... 13
3.2. Research approach ............................................................................................... 13
3.3. Research design .................................................................................................... 13
3.4. Data types and source ........................................................................................... 14
3.4.1. Primary data source ......................................................................................... 14
3.4.2. Secondary data source ...................................................................................... 14
3.5. Study population, Sampling procedure and techniques, size ................................... 14
3.5.1. Study population .............................................................................................. 14
3.5.2. Sampling procedure and techniques .................................................................. 14

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 3.5.3. Sample size ....................................................................................................... 14
3.6. Data collection method ......................................................................................... 15
3.7. Method of data analysis ........................................................................................ 16
3.8. Reliability and Validity test ................................................................................... 17
3.8.1. Validity Tests .................................................................................................... 17
3.8.2. Reliability Tests ................................................................................................ 17
3.9. Ethical consideration ............................................................................................ 17
CHAPTER FOUR ............................................................................................................... 18
4. RESEARCH TIMELINE AND BUDGET PLAN ........................................................... 18
4.1. Time schedule....................................................................................................... 18
4.2. Budget schedule ................................................................................................... 19
REFERENCES .................................................................................................................... 20
APPENDICES ..................................................................................................................... 23

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 LIST OF ABBREVIATIONS
BI Business Intelligence Systems

CRM Customer Relationship Management Systems

DSS Decision Support

ERP Enterprise Resource Planning

ES Expert Systems

FDRE Federal Democratic Republic 0f Ethiopia

GIS Geographic Information Systems

GTPI Growth and transformation plan I

GTPII Growth and transformation plan II

ICT Information communication technology

IS Information systems.

IT Information technology

MIS Management Information Systems

OP Organizational Performance

SCM Systems Supply Chain Management Systems

SPSS Statistical Package for Social Science

TPS Transaction Processing

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 CHAPTER ONE
1. INTRODUCTION

1.1. Background of the study

Nowadays, the efficient functioning of many organizations heavily relies on the proper application of
Management Information Systems (MIS). MIS plays a crucial role in providing organizations with the
necessary information to enhance collaboration and communication among personnel (Mamary,
Shamsuddin, & Aziati, 2014). However, despite the potential benefits, many organizations will struggle
to achieve the desired outcomes due to several reasons. The competitive business environment, constant
changes in processes, and insufficient technical and soft skills during implementation will hinder the
effective utilization of MIS (Bell & Wood-Harper, 2003; Li & Li, 2011; Marnewick et al., 2017).
Furthermore, organizations will often fail to consider the broader impact of IS implementation on other
aspects of the organization, resulting in systems that are perceived as obstacles rather than solutions
(Dua et al., 2012). Thus, organizations will face the challenge of aligning the value-added by an IS with
their overall business strategy (Jadda & Idrissi, 2015).

The successful implementation of a Management Information System depends on three dimensions:

organization, management, and information technology (Laudon, 2016). These dimensions are
interrelated and cannot operate independently. MIS helps organizations manage their data, organize,
and retrieve information, and deliver services more quickly and accurately, influencing their
performance (AL-Gharaibeh & Malkawi, 2013; Almazan, Tovar & Quintero, 2017). However, despite
the potential benefits, many organizations struggle to achieve the desired outcomes due to several
reasons. The competitive business environment, constant changes in processes, and insufficient
technical and soft skills during implementation hinder the effective utilization of MIS (Bell & Wood-
Harper, 2003; Li & Li, 2011; Marnewick et al., 2017). Furthermore, organizations often fail to consider
the broader impact of IS implementation on other aspects of the organization, resulting in systems that
are perceived as obstacles rather than solutions (Dua et al., 2012). Thus, organizations face the challenge
of aligning the value-added by an IS with their overall business strategy (Jadda & Idrissi, 2015)

In Ethiopia, the adoption of Information and Communication Technology (ICT) is seen to increase
productivity, enhance the economy's competitiveness, and create job opportunities (Federal Democratic
Republic of Ethiopia, Growth and Transformation Plan II (GTP II) (2015/16-2019/20)). The growth and
transformation plan emphasizes the development of ICT infrastructure, human capital, and the
utilization of ICT in various sectors. As a private company, Abbhawa Trading PLC. will benefit from
MIS by effectively managing daily tasks, accessing pertinent data and documents accurately and
rapidly, and implementing more efficient organizational and departmental approaches. Information will

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be regarded as a valuable resource for Abbhawa Trading, and the adoption of information systems will
enable the company to replace manual management methods and reengineer its business processes.

The motivation behind this paper will stem from the increasing adoption of Management Information
Systems in organizations to enhance efficiency and decision-making. However, challenges related to
management processes, technical systems, leadership, and organizational performance factors will
impact the successful implementation of MIS. This paper will aim to discuss these factors and their
interrelationships. The primary objective will be to identify the most significant factors influencing the
successful implementation of Management Information Systems and to compare the findings of
previous researchers in this field, determining why certain factors will hold more importance than
others.

1.2. Problem statement

According to Whitten et al. (2004, p.12), an information system is an arrangement that

encompasses people, data, processes, and technology, all working together to gather, process,
store, and provide the necessary information output to support an organization. Its primary goal
is to facilitate and expedite the decision-making process. Businesses worldwide have been
undergoing reorganization efforts and incorporating information systems (IS) within their
operations (Rajagopal, 2002). The success of an IS initiative can be measured by the efficiency
of information technology (IT) in advancing the organization's strategy, given that computer
based IS heavily relies on IT (O'Brien, 2004).

For an effective management information system (MIS), it is crucial to address all facets of
information management and provide a comprehensive strategy to tackle ever-changing
challenges (Theiruf, 1994). Additionally, the successful implementation of MIS in a business
is influenced by several interconnected factors (Beaumaster, 2002). Therefore, it is essential to
consider these factors and anticipate potential challenges when implementing an information
system. In Ethiopia, limited studies have focused on the impact of management information
system implementation factors on organizational performance. These studies aim to evaluate
the effects of these factors on organizational performance.

Getachew Alene (2018) conducted a study on the role of management information systems in
improving organizational performance and effectiveness, with a specific focus on the Debre
Markos City Administration Revenue Authority in Ethiopia. However, due to the qualitative
nature of the data analysis, generalizing from the study's findings proved challenging. Another
study by Tesfaye Hailu (2014) explored the impact of information systems on organizational
performance, specifically examining Ethio-Telecom Southern Region in Hawassa. This study

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identified dimensions of MIS implementation factors, such as information quality, user
experience, top management commitment and support, IS facilities, user attitude, user
perception, quality system, and organizational performance. Although the study addressed six
key challenges related to MIS implementation factors and organizational performance, it
acknowledged the existence of additional challenges. Therefore, the present study aims to
bridge this gap by utilizing multiple regression analysis, F-test, Analysis of variance (ANOVA),
and correlation analysis. Additionally, it will include companies that were not covered in
previous studies. The researcher will investigate the impact of management information system
implementation factors on organizational performance, building upon existing research
findings, and considering the identified problems, MIS implementation dimensions,
challenges, and organizational performance practices in Abbhawa Trading PLC, a selected
company.

1.3. Research questions

The study answered the following research questions.

i. Have management process issues does MIS implementation affect OP in Abbhwa

Trading plc?
ii. Does MIS technical systems implementation affect OP in Abbhawa Trading PLC?
iii. Do organizational leadership issues affect the implementation of MIS in OP at Abbhawa
Trading PLC.?
iv. Do personnel issues affect MIS implementation on OP in Abbhawa Trading PLC?
1.4. Objective
1.4.1. General objective

The main objective of this study will be to examine the effect of management information
system implementation factors on organizational performances in Abbhawa trading private
sectors.

1.4.2. Specific objective

• To identify the challenge of management processes in the implementation of MIS and
its effect on organizational performance in Abbhawa Trading plc.
• To identify whether the technical system in MIS implementation has an influence on
organizational performance in Abbhawa Trading plc.
• To examine whether organizational leadership in MIS implementation influences
organizational performance in Abbhawa Trading plc.

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 • To investigate whether personnel issues in MIS implementation influence
organizational performance in Abbhawa Trading plc.
1.5. Hypothesis of the study
Based on the above objectives and different literature, the following hypotheses will be set for the study
under consideration:
H-1: Management process has no significant effect on organizational performance.
H-2: Technical system has no significant effect on organizational performance.
H-3: Leadership has no significant effect on organizational performance.
H-4: Personnel has no significant effect on organizational performance.

H-5: MIS implementation factors have no significant effect on organizational performance.

1.6. Significance of the study

This study will serve as a source of information for future studies that will be conducted on related
topics. Furthermore, it will provide timely information to the organization regarding the impact of
management information system implementation factors on organizational performance. Consequently,
the top management will be able to utilize the findings of this study to understand the role of the system
on the organization's performance and identify areas that require improvement. Additionally, the
researcher will gain in-depth knowledge in the field, and this study will serve as a foundation for
subsequent research.

1.7. Scope of the study

Based on the wide scope of the concepts of information systems, this study will aim to focus solely on
the implementation challenges or issues (such as leadership, management process, technical aspects,
and personnel) of MIS being implemented at various managerial levels in Abbhawa Trading plc. The
study will utilize quantitative approaches for data collection, including descriptive and explanatory
survey designs. The researcher will employ a random sampling technique to gather the required data
from the respondents, based on the updated list of employees provided by the Abbhawa Trading and
manufacturing department for the year 2021/2022.

1.8. Limitations of the study

One of the restrictions will concern the collection of source data using questionnaires. Due to a lack of
time and motivation, respondents will not feel motivated to complete the questionnaires.

1.9. Organization of the study

To achieve this, the study will be structured into five chapters, each addressing specific aspects
of the research.

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Chapter 1: Introduction

The first chapter will provide an overview of the study, including the introduction, statement
of the problem, basic research questions, objectives, hypothesis, significance, delimitation, and
an outline of the chapter organization.

Chapter 2: Literature Review

The second chapter will conduct a detailed review of the theoretical and conceptual frameworks
related to “The Effect of Management Information System Implementation Factors on
Organizational Performance: A Case of Abbhawa Trading plc.” It will explore existing
literature on the concepts of internal MIS, Employee and Organization performance, and their
interplay.

Chapter 3: Methodology

The third chapter will outline the methodology that will be employed in this research. It will
describe the research design, data collection methods, and data analysis techniques that will be
utilized to investigate the effect of MIS implementation on organization performance.

Chapter 4: Data Collection, Analysis, and Interpretation

The fourth chapter will focus on the data collection process, data analysis methods, and the
interpretation of the findings obtained from the research. It will provide a comprehensive
analysis of the collected data and draw meaningful conclusions.

Chapter 5: Summary, Conclusion, and Recommendations

The fifth and closing chapter will summarize the key findings from the research, present the
conclusions drawn based on the analysis, and provide recommendations for organizations.

By following this structure, the study aims to provide a thorough analysis of the Effect of
Management Information System Implementation Factors on Organizational Performance: A
Case of Abbhawa Trading plc", offering valuable insights and recommendations for both theory
and practice.

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 CHAPTER TWO
2. LITERATURE REVIEW

2.1. Theoretical framework

2.1.1. Management information systems (MIS)

MIS is an information system that helps organizations accomplish their goals and objectives
by making timely and effective choices for planning, directing, and regulating the operations
for which they are accountable. In this study, MIS will be utilized as a synonym for Information
System (IS).

The Management Information System (MIS) is a subset of Information Systems (IS) that
combines management, computer science, and operations research to address real-world
problems. Its primary objective is to provide system solutions and address concerns related to
employee and manager behavior regarding the creation, usage, and impact of information
systems (Laudon & Laudon, 2017).

MIS serves a wide range of purposes, including providing users with relevant information to
make informed decisions and solve various problems. These systems enable structured
discussions by ensuring accurate information is available in advance (Lapiedra & Devece,
2012). Over time, standalone systems have become less common, with capabilities from
different applications being combined and integrated. As a result, MIS is now defined as a
collection of systems that support activities such as Transaction Processing Systems (TPS),
Supply Chain Management Systems (SCM) or Enterprise Resource Planning (ERP) systems,
Customer Relationship Management Systems (CRM), Business Intelligence Systems (BI),
Decision Support and Expert Systems (DSS/ES), and Geographic Information Systems (GIS).

TPS primarily record data at the boundaries of organizations, where business transactions occur
with external stakeholders. They may also collect internal data within the organization. SCM
involves multiple systems that gather data from the supply chain to create a comprehensive
system, while ERP systems focus on modifying business processes in real-time. CRM is
responsible for managing an organization's customer relationships, ranging from simple
systems for maintaining customer records to complex ones that predict, detect, and analyze
buying patterns. BI systems empower organizations to compete more effectively by gathering
raw data and utilizing sophisticated statistical models to uncover patterns. This allows for
quicker and more accurate strategy adjustments, increasing competitiveness and attractiveness.

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Decision Support Systems rely on formulas and models to provide sufficient information for
decision-making, while Expert Systems employ artificial intelligence techniques. GIS links
data to physical locations (Sousa & Oz, 2015).

Current research in the MIS field focuses on implementation strategies and critical success
factors (CSF), which are the personalized characteristics of organizations. As previously
mentioned, MIS is dedicated to developing system solutions for real-world problems and
addressing behavioral issues among employees and managers related to information systems
(Laudon & Laudon, 2017).

2.1.2. Information systems (IS) and information technology (IT)

The field of information systems encompasses a wide range of research and literature, each
offering different definitions of the field itself. Savoie (2016) defines it as the transfer of data
between individuals, emphasizing the importance of having the right data, in the right place, at
the right time, for the right person, and in the right format (the five rights). Similarly, Rahman
(2014) defines it as a collection of interconnected components that gather, process, store, and
distribute information to support decision-making and organizational control. Spagnoletti et al.
(2013) describes information systems as a disciplinary technology that governs employee
actions and provides information to enhance managerial and organizational monitoring of these
activities.

While definitions may vary, there is a consensus on the significance of information systems
within organizations. Information technology (IT), which encompasses hardware and software,
is a crucial component of an information system. Nowadays, IT plays a vital role in the strategic
planning of organizations, serving as the foundation on which businesses build their
information systems (Boar, 1993).

2.2. MIS implementation

MIS Implementation refers to the stage in the information system development process that focuses on
successfully integrating the information system into its intended context of use. This phase is commonly
referred to as the "IS implementation process" and is recognized as a crucial step in the overall
implementation process. To avoid any confusion, this process can also be referred to as the "IS
Development and Deployment Process" to provide clarity and emphasize the comprehensive nature of
the implementation journey.

In this section, we will explore the implementation process, which is also referred to as the
"information system development process" in this study. Implementing latest information

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systems represents a significant investment for organizations. Given that information systems
are socio-technical systems, their development entails the collaborative design of activity
systems and ICT systems (Davies, 2009). It is crucial to outline the key stages of the
information system implementation process. Davies (2009) proposes phases for information
system implementation that involve several critical actions. This concept aligns with O'Brien's
(2004) description of a five-step process called the information systems development cycle,
which includes the phases of investigation, analysis, design, implementation, and maintenance.

The initial phase of the information system development process is systems investigation or
system conception. Its purpose is to determine how to develop a project management plan
based on informatics planning and management, as well as obtain management approval.
Systems analysis focuses on identifying information needs and developing functional
requirements for the system. Systems design involves planning a technical artifact and creating
specifications for hardware, software, data, personnel, and network. Additionally, this phase
encompasses building the information system according to the defined specifications. System
implementation includes system delivery, testing, training users, and transitioning to the new
business system. Lastly, system maintenance involves making necessary modifications to the
functionality of the information system (O'Brien, 2004; Davies, 2009).

2.3. Implementation challenges in Ethiopia

Despite the accomplishments attained during GTP I, which involved providing coordinated leadership
to developmental forces and promoting structured participation of the people, there have also been
encountered challenges throughout the implementation process. The following are the key challenges
that have been identified:

• Throughout the duration of GTP I, there were notable limitations in the implementation capacity
at various levels, hindering the achievement of targets set for different sectors. These limitations
encompassed challenges in project planning and management (including planning,
implementation, monitoring, and contract administration), as well as difficulties in coordinating
efforts, changing attitudes, motivating, organizing, and training implementing bodies to
enhance productivity in line with the targets. Logistics and customs service’s issues were
particularly intertwined with the export sector, consequently having a negative impact on
investment and trade sectors. Despite the extensive efforts invested in the civil service reform
program, the capacity issues within institutions have yet to be fully addressed. Therefore, it is
imperative to bolster the ongoing endeavors in building a civil service equipped with capable,
motivated, skilled, and efficient human resources.

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 • Infrastructure plays a crucial role in providing high-quality transportation services,
communication networks, and power supply, which are essential for accelerating economic
growth and maintaining competitiveness in the economy. Recognizing the importance of
infrastructure and energy investments for driving structural transformation, Ethiopia has
demonstrated a strong commitment to sustaining investments in this sector. Over the past five
years, significant development activities have been undertaken to ensure an adequate supply of
infrastructure, yielding positive outcomes. However, challenges persist in delivering quality
infrastructure, such as power and logistic services. By closely monitoring and providing support
to address these challenges, the potential for development can be unleashed, leading to
increased productivity without incurring additional investment costs. Furthermore, to optimize
the efficient use of limited resources, enhance product quality and productivity, and ensure
competitiveness in terms of product variety, quality, and price, ongoing initiatives like kaizen
and benchmarking should be further strengthened during GTP II and beyond.
2.4. Organizational performance

Okeke (2019) conducted a study focusing on the impact of performance management on

employee productivity and outlined the relevant variables applicable to large organizations.
Performance management practices serve as systematic methods of communicating
performance and productivity expectations to employees (Marsor, 2011). According to Jackson
(2009), performance management encompasses understanding objectives, monitoring
progress, conducting performance reviews, providing feedback, implementing incentive-based
performance measures, facilitating career planning, motivation, and offering training and
development opportunities. These practices involve a comprehensive approach to reassessing
decisions related to performance improvement and comparing individual outcomes against
expected results. By employing various practices, organizations can examine and enhance
personal performance, aligning it with the overall goals of the company. Appraisals play a
crucial role in motivating employees to strive for continuous improvement by identifying
strengths and weaknesses at an individual level. Effective performance management practices
foster harmonization in fulfilling responsibilities and managing a diverse workforce,
contributing to organizational success. Additionally, when training and development initiatives
are linked with an appropriate evaluation system, they further support employee improvement
and help achieve organizational objectives. Performance feedback provides a retrospective
analysis of past performance, motivating employees to meet expectations and directing their
efforts towards objective attainment. Reliable feedback helps identify performance gaps,

9
enabling the implementation of alternative strategies for employee self-development and the
achievement of performance targets.

In summary, Okeke's (2019) research explored the influence of performance management on

employee productivity in large organizations. The study emphasized the significance of
performance management practices, which involve effectively communicating expectations to
employees and implementing various strategies such as performance reviews, feedback,
incentives, career planning, motivation, and training and development. These practices aim to
enhance individual performance, align it with organizational goals, and foster harmonization
in managing diverse workforces. Appraisals play a vital role in motivating employees to
continuously improve by identifying strengths and weaknesses. By incorporating reliable
feedback, organizations can identify performance gaps and implement appropriate measures
for employee self-development. Furthermore, when training and development initiatives are
coupled with evaluation systems, they contribute to both individual and organizational success.

2.5. Empirical work

In a study conducted by Guzman, Foster, Ramirez-Correa, Grandon, and Alfaro-Perez (2018),

the impact of information systems on organizational performance in higher education
institutions was investigated. The study aimed to determine if the success of information
systems influenced job satisfaction, job commitment, and overall organizational performance.
The independent variables included system quality, information quality, service quality,
decision making, satisfaction, and use utility, while job satisfaction, job commitment, and
organizational performance were the dependent variables. The data was analyzed using a
partial least squares method, and the results revealed that the success of information systems
had a significant effect on job satisfaction, job commitment, and organizational performance.

Another study by Young-Harry, Oparanma, and Ejo-Orusa (2018) focused on the management
information system and its impact on the organizational performance of the Seven-Up Bottling
Company in Aba and Port Harcourt. The study involved 117 respondents, and descriptive
statistics and Spearman's rank correlation were used for data analysis and hypothesis testing.
The findings indicated a positive and committed relationship between the management
information systems and the organizational performance of the company. The study concluded
that the management information system played a crucial role in enhancing organizational
performance.

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Rehab (2018) conducted a study on the impact of accounting information systems (AIS) on
organizational performance, with a focus on Saudi small and medium enterprises (SMEs). The
objective was to investigate the influence of AIS on various dimensions of organizational
performance, including cost reduction, improved quality, and effective decision-making. The
data was analyzed using smart partial least squares, and the findings demonstrated that the
utilization of AIS had a significant positive impact on organizational performance,
encompassing all dimensions examined.

In summary, these studies investigated the relationship between information systems and
organizational performance in different contexts. The findings consistently highlighted the
positive influence of information systems on job satisfaction, job commitment, and overall
organizational performance. The studies emphasized the importance of system quality,
information quality, and service quality in achieving successful outcomes. Moreover, the
management of information systems was found to enhance service delivery, reduce paperwork,
and improve resource access and worker satisfaction. These findings underscore the
significance of effective information systems management for organizations seeking to
enhance their performance and competitiveness.

2.6. Conceptual framework

The challenges involved in implementing a management information system (MIS) can be classified
into four main categories: leadership issues, management process issues, personal issues, and technical
systems issues. When considering the specific context of Abbhawa Trading plc, the model also
highlights the key challenges faced in implementing MIS within the organization. Finally, it is important
to note that the successful implementation of MIS has the potential to enhance organizational
performance.

2.7. Synthesis of the literature review

The literature review synthesizes several studies related to MIS implementation,

implementation challenges in Ethiopia, organizational performance, empirical work, and a
conceptual framework.

Regarding MIS implementation, the review explains that it refers to the process of integrating
an information system into its intended context of use. The implementation process involves
stages such as investigation, analysis, design, implementation, and maintenance. The review
emphasizes the importance of collaborative design and outlines the key actions involved in
implementing an information system.

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In the context of Ethiopia, the review highlights challenges encountered during the
implementation of the Growth and Transformation Plan (GTP I). These challenges include
limitations in implementation capacity, project planning and management difficulties,
coordination issues, and infrastructure-related challenges. The review emphasizes the need to
address capacity issues in institutions and enhance infrastructure development to support
economic growth.

The section on organizational performance discusses the impact of performance management

practices on employee productivity. Performance management involves communicating
performance expectations, monitoring progress, conducting reviews, providing feedback,
implementing incentives, and facilitating career planning and training. The review emphasizes
the role of performance appraisals in motivating employees and identifies effective
performance management practices as contributors to organizational success.

The empirical work section presents findings from three studies. One study examines the
impact of information systems on organizational performance in higher education institutions,
highlighting the influence of system quality, information quality, and service quality on job
satisfaction, job commitment, and overall organizational performance. Another study focuses
on the management information system's impact on organizational performance in a bottling
company and finds a positive relationship between the two. A third study explores the impact
of accounting information systems on organizational performance in Saudi small and medium
enterprises, demonstrating a positive influence on cost reduction, improved quality, and
effective decision-making.

Lastly, the review presents a conceptual framework for MIS implementation challenges. It
classifies these challenges into four categories: leadership issues, management process issues,
personal issues, and technical systems issues. The framework considers the specific context of
Abbhawa Trading plc and acknowledges that successful MIS implementation has the potential
to enhance organizational performance.

Overall, the literature review provides a comprehensive synthesis of studies related to MIS
implementation, challenges in Ethiopia, organizational performance, empirical findings, and a
conceptual framework. It highlights the significance of effective information systems
management for organizations aiming to improve performance and competitiveness.

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 CHAPTER THREE
3. RESEARCH METHODOLOGY

3.1. Introduction

This chapter will focus on the description of the techniques that will be adopted in this research work.
It will aim to highlight the overall methodological considerations of the paper, which will include a
Description of the Study Area, Research Design, Target Population, Sample Design, Data source and
type, Data collection methods, Data Process, and Analysis.

3.2. Research approach

The researcher will use a qualitative and quantitative study approach. In the qualitative research
approach, knowledge will be constructed inductively. The main emphasis will be placed on
understanding the social world through the examination of the interpretation of that world by its
participants in a constructivist perspective. A qualitative finding will involve verbal statements and
emerging open-ended data in constructing meanings and knowledge. It will involve participating in or
immersing oneself in the social world where people and their institutions are located and interact with
each other, and examining the way they interact together, the meaning they give to their interactions,
and the world they are living in. Accordingly, this research will be conducted using both quantitative
and qualitative research approaches. Hence, it will explore the effect of management information system
implementation factors on organizational performance in the case of Abbhawa Trading.

3.3. Research design

For this study, the researcher will opt for a case study research design. This design will align
with the study's objectives as it will be well-suited to explore the effect of management
information system implementation factors on organizational performance in the case of
Abbhawa Trading. Compared to other research designs, the case study design will be
considered the most appropriate for analyzing processes, programs, or activities within an
organization (Gluesing J. 2013).

Within the case study research design, three basic approaches exist: explanatory, exploratory,
and descriptive (Robert K. Yin. 2014). In this study, an explanatory approach will be employed,
aiming to elucidate causal relationships and develop theories through a detailed explanation of
the phenomena under investigation. The research design will focus on exploring the explore
the effect of management information system implementation factors on organizational
performance in the case of Abbhawa Trading. It will seek to identify the extent and nature of
cause-and-effect relationships. By adopting a causal research design, the study will aim to

13
analyze a specific problem or situation and provide explanations for observed phenomena,
problems, or behaviors, addressing the "why" and "how" types of questions.

3.4. Data types and source

3.4.1. Primary data source

The researchers will employ a quantitative approach to collect primary data. The data will be
gathered through a sample survey using questionnaires, which will capture numerical figures
and phenomena. The primary data will primarily be sourced from the target population of this
study, which will comprise employees at Abbhawa Trading. The questionnaires will be
distributed and collected using Microsoft Forms in Addis Ababa, Ethiopia.

3.4.2. Secondary data source

The secondary data for this study will be gathered from various sources, including the annual
reports of Abbhawa Trading., the short and long-term strategic plans of Abbhawa Trading., the
official website of Abbhawa Trading., relevant journals, articles, and other existing reports. The
utilization of these secondary data sources will contribute to a more comprehensive
understanding of the topic under the study.

3.5. Study population, Sampling procedure and techniques, size

3.5.1. Study population

The research target population will consist of senior consultants, researchers, and middle
management personnel within Abbhawa Trading PLC.as they will be deemed valuable sources
of relevant and high-quality data for the study. However, employees with less than two years
of experience in the center will be excluded from the target population.

3.5.2. Sampling procedure and techniques

Sampling will involve choosing an appropriate sample to establish the parameters or features of the
entire population (John, Hafiz, Raeside, & White, 2007). This research will be conducted using
probability sampling, specifically the proportional sampling technique. The reason for using sampling
techniques is that they will be more appropriate for the study. In this study, the researcher will be able
to select the sample based on their judgment and certain characteristics required from the sample
elements will be considered.

3.5.3. Sample size

In the first stage, Abbhawa Trading PLC will be selected purposively due to the limited number of
studies conducted at the company level in this area. The four sectors will be selected using a proportional

14
sampling technique. Proportional sampling will be used as a probability sampling technique to
determine the sample size. The researcher will take the number of employees from Abbhawa Trading
as per their list, considering the report (2021 and 2022) of Abbhawa Trading HRD.

However, the correct sample size will depend upon the nature of the population and the purpose of the
study. In general, it will be better to have as large a sample as possible to reach a general conclusion. A
random sampling design will be used to obtain a representative sample of the population and ensure an
adequate number of units for the analysis.

3.6. Data collection method

The research intends to collect primary data through a structured questionnaire. This is because
a questionnaire is practical, can collect substantial amounts of information, is cost-effective for
large populations, allows anonymous data collection, can produce quantifiable results easily,
and can be tested before administering it to the sample population (Popper, 2004). A structured
questionnaire will therefore be used to obtain information from the sample of employees from
Abbhawa Trading.

The questionnaire will comprise structured closed-ended questions. These questions will be
presented in two main parts: Part A and B. Part A will present questions that will provide
information on the respondent's background, such as education level, experience, age, and
gender. Part B will collect feedback on the four implementation challenges of MIS in the
organization in various sub-sections and will also collect information about organizational
performance based on work efficiency and effectiveness.

The questionnaire will be designed in the context of Beaumaster's (1999) model. It will be first
designed in English and then translated into the Aharic language for ease of understanding by
the respondents. Moreover, the instruments will be piloted (pre-tested) with a small number of
respondents in the study area and will be commented on by experts to assess their reliability,
validity, and effectiveness in collecting data. The test for validity will be conducted with some
selected sample respondents and reviewed by experts (thesis advisors) before its final
distribution to the whole sample population. Moreover, Cronbach's Alpha will be used to check
the reliability of the questionnaire items. The pre-test for validity will reveal any
misinterpretation of questions by respondents, and necessary adjustments will be made to
ensure concise and understandable wording.

15
After achieving the above, questionnaires will be given to respondents in person. There will be
no missing data as the questionnaire administration will be done in close contact and with
guidance from the researcher himself and trained employees of Abbhawa Trading.

3.7. Method of data analysis

The data collected from the respondents will be processed. The data will be first checked/edited
to ensure completeness, accuracy, and uniformity. All instruments will be assigned serial
numbers to facilitate identification and data entry into the computer. The data will be coded
after checking/editing and entered the computer for analysis. The data analysis section of this
study will be based on descriptive and inferential analyses.

The descriptive analysis will include mean, standard deviation, tables, frequency, and
percentage. It will be preferred because it facilitates the organization of data, early detection of
errors, ease of comparison of findings, and simplification of data computation.

Respondents will also be asked to rate their opinion according to a five-point Likert rating
scale, with rating five representing "Strongly Agree" and one representing "Strongly Disagree".

An inherent assumption with the usage of any Likert scale is that, although the scale is truly
ordinal, it is assumed to be on an interval scale with which statistical properties such as the
mean can be justifiably used. This assumption is made quite frequently in empirical studies
(Edmundson, 2005).

Recently, an empirical study found that a 5-7-point scale may produce slightly higher mean
scores relative to the highest possible attainable score, compared to those produced from a 10-
point scale, and this difference is statistically significant (Dawes, 2008). Moreover, Lewis
(1993) criticized the use of a seven-point Likert scale for its lack of verbal labeling for points
two to six, which may cause respondents to overuse the extreme ends of the scale. Babakus
and Mangold (1992) suggested that a five-point Likert scale would reduce the "frustration
level" of respondents and increase response rate and quality. For these reasons, in this specific
type of survey, the researcher will choose a 5-point Likert scale.

The collected data will be regressed and analyzed with the help of a tool called Statistical
Package for Social Science (SPSS) version 26, and MS Word 2018 will be used for overall
percentage and mean computation.

16
 3.8. Reliability and Validity test
3.8.1. Validity Tests

Bryman & Bell (2007) defined validity as how much any measuring instrument measures what
it is intended to measure. They also suggest that the critical issue of measurement validity
relates to whether measures of concepts measure the concept or not. There are several ways of
establishing validity such as content validity; convergent validity concurrent; predictive
validity; construct validity; and convergent validity. This study will address content validity
through the review of the literature and adapting instruments used in previous studies. Prior to
conducting data analysis, the researcher will perform sorting, coding, and reliability testing of
the data. To analyze the data, the study will employ descriptive statistics.

3.8.2. Reliability Tests

Reliability refers to the degree to which variables or a set of variables maintain consistency in
measuring what they are intended to measure. Nunnaly (1978) stated that reliability is the
consistency of a test, survey, observation, or another measuring device. The level of
reliability of the instrument indicates the consistency of the variables. Cronbach ‘s alpha
is an index of reliability associated with the variation account for the true score of the
underlying construct and it can only be measured for variables that have more than one
measurement question. The reliability of the questions for each variable was obtained.
Reliability analysis will be employed to assess the consistency of a questionnaire.

3.9. Ethical consideration

Prior to data collection, the researchers will ensure that all participants, including senior
consultants, researchers, and middle management personnel within Abbhawa Trading PLC. Are
fully informed about the purpose, procedures, and potential risks and benefits of the study. The
researchers will ensure that all data collected from participants are treated with strict
confidentiality. The findings of the study will only be reported in an aggregated and anonymous
manner, ensuring that no individual participant can be identified. The researchers will take
utmost care to minimize any potential harm or discomfort to the participants. The researchers
will maintain objectivity and impartiality throughout the research process. They will strive to
minimize any personal biases that may influence data collection, analysis, and interpretation.
The research study will adhere to the ethical guidelines and protocols set by the university
institutional review board or ethical committee

17
 CHAPTER FOUR
4. RESEARCH TIMELINE AND BUDGET PLAN

4.1. Time schedule

Duration in months
Activities
October November December January February March April May

Title Selection
1
Preparing the proposal
2
Completion of the first draft of the
3
proposal
Accepting comments and improving
4
the proposal
Research and Background, Problem
5
Statement and Objectives,
Methodology
Distributing questionnaire, Data
6
Collection, Data Analysis, Results and
Discussion
Research report writing, Conclusion
7
and Finalization, Submission of draft
report,
Submission of final report,
8
Presentation of the final paper

18
 4.2. Budget schedule

Items Unit Unit Quantity Total cost (Birr)

Cost

1 Research materials and resources 500

2 Literature review expenses Internet 500

(access to academic journals, books)

3 Data collection tools (surveys, Per day 1500

interview recording equipment)

Fee for data collectors

4 Travel and accommodation expenses 800

for presenting research

5 Stationary materials Pieces/packs 500

6 Secretarial service, Presentation Per page 10 50 500

materials (Draft printing, slide design)

subtotal 4300

Contingency (10%) 430

Grand total 4730 birrs

19
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 APPENDICES

Questionnaire

Postgraduates

Title: The questionnaire prepared for Employees of A bbhawa Trading PLC

Dear Respondent,

This questionnaire is designed to gather data from Employees of Abbhawa trading private
Sectors. It is developed by a student at Gage University working on a thesis “The effect of MIS
implementation factors on organizational Performance in Abbhawa Trading plc” for a master’s
degree in business administration (MBA), which is intended to help the researcher collect data
to achieve academic pursuit. It is also highly expected that with your active participation, the
outcome of this research would lead to recommendations that may help the private organization
to bridge the gap with its employees.

Participation is fully voluntary basis, and your accurate and frank responses are imperative for
the successful accomplishment of the study.

Kindly, therefore, return the questionnaire upon completing each item appropriately.

Sincere responses.

Thank you so much for your cooperation!

23
Part One: General Information

1. Name of the Organization

Please tick appropriately (√) the question provide below.

2. Sex

O Male O Female

3. Age

O 18-20 years O 21-30 years O 31-40

years

O 41- 50 years O above 50 years

4. Level of education

O Secondary O College /Diploma O /BSC, BA/

O Master Deg

5. Number of years worked in the organization.

O 1- 4 Years. O 5-9 Years O 10-19

Years

O 20-30 Years O Above 30Years

6. What is the total number of employees in your organization: Please tick one?

O Less than 25 O 26 – 50 O 51-75

O 76-100 O above one hundred

a) Are there formal meetings within the structure to evaluate the impacts of MIS in your
organization.

O Yes O No

24
 b) If yes, what is the frequency of the meetings.

O Weekly O Monthly O Quarterly

O Yearly

Part two: items (questions) related to the effect of management information system
implementation factors on organization performance.

Please indicate the answer by putting a thick mark (√) in the box

Rating degree 1=strongly disagree, 2=disagree, 3=no comment, 4=agree, 5=strongly agree

The effect of MIS implementation factors on organization performance

No. A. MANAGEMENT PROCESS ISSUES 1 2 3 4 5

1 The sector has set an adequate budget for the implementation of

MIS (mp1)

2 The process for acquiring processes or hardware is adequate for

MIS implementation (mp2)

3 The organization/sector/policies have a negative influence on the

application of MIS (mp3)

4 The current MIS meets the operational needs of your department

(mp4)

B. TECHNICAL SYSTEM ISSUES

1 The organization has enough technical expertise to use the MIS

adopted by your department (TS1).

2 The quality of the software or hardware affects the accuracy of

information provided by the MIS(TS2).

3 MIS is robust to handle an increase in users or the size of the

organization (TS3)

25
4 MIS is effective in helping you make decisions in your sector
justness (TS4)

C LEADERSHIP ISSUES

1 There is effective Coordination among departments to use

MIS(LS1)

2 The senior management has encouraged the use of MIS in your

department (LS2)

3 Senior management uses the MIS to help them make decisions

(LS3)

4 The management makes effective use of the MIS to disseminate

information (LS4)

5 The information disseminated by leadership timely (LS5)

6 Leaders ‘behavior towards technology has affected the

implementation of MIS in the sector. (LS6)

D. PERSONNEL ISSUES(P)

1 The staff trained adequately to use MIS in the

organization/sector(P1)

2 The organization has adopted adequate strategies for preventing

the misuse of information by MIS users(P2)

3 Personnel training influences the user’s ability to request

information from the MIS(P3)

4 MIS user training affects the user’s ability to generate reports for
management

ORGANIZATIONAL PERFORMANCE

1 Work efficiency (WE)

Information systems help in improving the efficiency of the

employee in the administrative system (WE1)

26
2

The ability to take advantage of the system by issuing reports

whether aggregate or detailed (current or monthly, quarterly, or
annually) on the activities of the organization (WE2)

3 Information System allows the use of electronic database (WE3)

4 The employees in a company will become more productive

(WE4)

5 Employees can use Managerial information systems easily to

increase organizational performance. (WE5)

1 Work effectiveness (E)

The information available is appropriate to complete the work(E1)

2 The performance information reflects accurately the events and

transactions to which they relate (E2)

3 Employees can control the features of the Managerial information

system easily to increase the quality of the organization (E3)

27