Relationship between management information systems and corporate performance

Abstract

The literature review on the success of management information systems (IS) provides empirical evidence that mere investment in IS and New Management Tools (NMTs) does not guarantee better business results. Aiming to contribute to the knowledge of the factors explaining the success of IS implementation, this paper classifies them through cluster analysis, with a sample of Spanish companies according to the valuation given by their finance directors (CFOs) to the quality of such systems and their use for strategic purposes. This classification helps to answer three questions: do companies that better rate their IS improve their performance? How do IS quality and strategy affect results? Is there a positive relationship between the use of NMTs and improvement in performance?Through the non-parametric Kruskal–Wallis test and a partial least squares (PLS) model results are yielded that support the first question and show the positive effect of the IS quality and strategy on improving corporate profitability. Logistic regression showed an interaction between the use of NMTs and the IS strategic approach with positive effects on improving profitability.The results of this study have significant implications for companies, suggesting that investment in new IS and NMTs must be coupled with a clear sense of strategy.