The Role of Strategic Information Systems (SIS) in Supporting and Achieving the Competitive Advantages (CA): An Empirical Study on Saudi Banking Sector

Nisreen F,Abdullah A

doi:10.14569/ijacsa.2017.080718

Abstract

The purpose of this research paper is to identify the significant role of Strategic Information Systems (SIS) in supporting the Competitive Advantage (CA). It also explains its role on the dimensions that increase the competitive advantage which are the operational efficiency, information quality and innovation. In order to achieve the goal of this study and to collect the primary data, the researchers designed a survey, in the form of an electronic questionnaire. This survey instrument consisted of 20 questions. It was distributed to members of the study sample, which contains the managers at all levels, and the employees in the Saudi banking sector. The number of the participants included in the survey was 147. The results of this study revealed that there is a significant role of strategic information systems on increasing operational efficiency, improving the quality of information and promoting innovation. This in turn enabled the organizations to achieve higher levels of competitive advantages. The strategic information systems have deep consequences for organizations that adopt them; managers could achieve great and sustainable competitive advantages from such systems if carefully considered and developed. On the other hand, this study was conducted in the banking sector in KSA context. So, more research is needed in other sectors and in the context of other countries; to confirm and generalize the results. Finally, the paper’s primary value lies in its ability to provide the evidence that the strategic information systems play a significant role in supporting and achieving the competitive advantages in Saudi Arabia, particularly in the banking sector. Since there was a lack of such research in the Saudi context, this paper can provide a theoretical basis for future researchers as well as practical implications for managers.

Highlights

In the light of today’s global economy, the organizations face several challenges such as globalization, privatization, stiff competition and more demanding customer expectations, coupled with daily advancement in information and communication technologies
Based on the findings of the study, the researchers concluded a set of recommendations that represent the importance of activating the role of the strategic information systems by the organizations in general and the Saudi banking sector in particular
The researchers emphasized that the organizations should work on the introduction of Strategic Information Systems (SIS) to improve the efficiency of operations and enhance the quality of information at the lowest cost and fastest time to enable the company to achieve the competitive advantages

Summary

Introduction

In the light of today’s global economy, the organizations face several challenges such as globalization, privatization, stiff competition and more demanding customer expectations, coupled with daily advancement in information and communication technologies. In this environment, the top managers should understand and realize that the IS/IT is not merely a resource to support day-to-day operations. If the organizations wish to remain successful and to be competitive, the managers need to consider Information Systems (ISs) as a tool utilized to gain competitive advantages, in order to overcome the other competitive organizations. The information systems that help seize opportunities of gain competitive advantages are often called Strategic Information Systems (SIS)

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Discussion

Conclusion