Abstract
The study emphasizes the importance of Decision support systems (DSS) for corporate performance. Prior studies have been reviewed to validate theories that explain how Decision support systems (DSS) affect corporate performance. Decision support systems (DSS) provides information that is valuable to take decisions and reflects current economic, and financial state of the company: efficiency, output rates, information on the effect of different events, that relate to the impact that the employees’ decision has on the performance of other departments. Furthermore, greater management information system capability leads to a higher degree of strategic performance. These and many other factors are suggested to be critical features of DSS that have a direct influence on the financial and strategic performance of companies. This paper uses resource based view in order to explain the importance of DSS capabilities and their direct influence on firm performance. In other words, the main idea behind the paper involves the analysis of company performance based on how information system capabilities are used. For this purpose, this paper formulates conceptual framework which explains the link of DSS capabilities to absorptive capacity through the interaction of market access competency, integrated related competency, functionality related competency. Finally, the influence of DSS capabilities is described in terms of their influence on companies market based and operation performance.
Highlights
Nowadays, due to the increasing usage of IT practices in business practices, the role of IT has become more critical than ever
It is necessary to determine the character of the relationship between Management information system and firm performance.Analysis of the previous literature provides evidence that most companies were able to increase their performance in marketing, production, product distribution, customer service due to a significant amount of money invested in improving IS
The efficient practice of decision support systems is crucial for the successful operations of companies
Summary
Due to the increasing usage of IT practices in business practices, the role of IT has become more critical than ever. DSS has an influence on flexibility-based strategic performance and cost-based strategic performance in terms of the decentralization of responsibilities, updating customer knowledge and customer participation in management, the cooperation with other units with the scope of increasing firm budget, and actualization and use of management information (Naranjo-Gil 2009, Slotegraaf and Pauwels, 2008). These benefits consist of more informed decision-making, timely problem solving and better learning. We discuss current studies and use existing methods to elaborate this relationship
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