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Unravelling the integrated information systems and management control paradox: enhancing dynamic capability through business intelligence
Author(s) -
Elbashir Mohamed Z.,
Sutton Steve G.,
Mahama Habib,
Arnold Vicky
Publication year - 2021
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12644
Subject(s) - vendor , business process management , process management , business process , knowledge management , business process modeling , business , management control system , information system , control (management) , business intelligence , computer science , marketing , engineering , work in process , artificial intelligence , electrical engineering
The purpose of this study is to examine whether the interactive effects of integrated information systems (IIS) and business intelligence (BI)‐enabled management control system (MCS) lead to the assimilation of integrated management control information into business processes and whether this assimilation enhances organisational performance. Data were gathered through a large survey and included 419 senior and middle managers representing 347 Australian organisations. The respondents were from organisations that use a single international vendor’s BI software designed to provide integrated MCS capability. As hypothesised, the results confirm the positive influence of the interaction between IIS and BI‐enabled MCS on assimilation of integrated management control information at the business process level, the positive relationship between business process level assimilation and business process performance, and finally the positive relationship between business process performance and overall organisational performance. The results also show that the interaction term has a significant indirect relationship with business process improvement and organisational performance.