Business intelligence systems use in performance measurement capabilities: Implications for enhanced competitive advantage

International Journal of Accounting Information Systems

Volumn 21, Issue , 2016, Pages 1-17

  Peters, Matt D ^a   Wieder, Bernhard ^a   Sutton, Steve G ^b   Wakefield, James ^a  

^a UNIVERSITY OF TECHNOLOGY SYDNEY   (Australia)

^b UNIVERSITY OF CENTRAL FLORIDA   (United States)

Author keywords

Business intelligence (BI); Competitive advantage; Diagnostic and interactive; Management control systems; Performance measurement; Systems quality

Indexed keywords

EID: 84964823761     PISSN: 14670895     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.accinf.2016.03.001     Document Type: Article

References (98)

1. Abernethy M.A., Brownell P. The role of budgets in organizations facing strategic change: an exploratory study. Acc. Organ. Soc. 1999, 24(3):189-204.
2. Alavi M., Leidner D.E. Review: knowledge management and knowledge management systems: conceptual foundations and research issues. MIS Q. 2001, 25(1):107-136.
3. Ariav G. Information systems for managerial planning and control: a conceptual examination of their temporal structure. J. Manag. Inf. Syst. 1992, 9(2):77-98.
4. Armstrong J.S., Overton T. Estimating nonresponse bias in mail surveys. J. Mark. Res. 1977, 14(3):396-402.
5. Bagozzi R., Yi Y. On the evaluation of structural equation models. J. Acad. Mark. Sci. 1988, 16(1):74-94.
6. Barclay D.R., Thompson R., Higgins C. The partial least squares approach to casual modeling: personal computer adoption and use as an illustration. Technol. Stud. 1995, 2:285-324.
7. Barney J.B. Firm resources and sustained competitive advantage. J. Manag. 1991, 17(1):99-120.
8. Baron R.M., Kenny D.A. The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. J. Pers. Soc. Psychol. 1986, 51(6):1173-1182.
9. Baum J.R., Wally S. Strategic decision speed and firm performance. Strateg. Manag. J. 2003, 24(11):1107-1129.
10. Bhatt G.D., Grover V. Types of information technology capabilities and their role in competitive advantage: an empirical study. J. Manag. Inf. Syst. 2005, 22(2):253-277.
11. Bisbe J., Otley D. The effects of the interactive use of management control systems on product innovation. Acc. Organ. Soc. 2004, 29(8):709-737.
12. Bisbe J., Batista-Foguet J.M., Chenhall R. Defining management accounting constructs: a methodological note on the risks of conceptual misspecification. Acc. Organ. Soc. 2007, 32(7):789-820.
13. Bollen K.A., Stine R. Direct and indirect effects: classical and bootstrap estimates of variability. Sociol. Methodol. 1990, 20(1):115-140.
14. Burton-Jones A., Straub D.W. Reconceptualizing system usage: an approach and empirical test. Inf. Syst. Res. 2006, 17(3):228-246.
15. Chapman C., Kihn L.A. Information system integration, enabling control and performance. Acc. Organ. Soc. 2009, 34(2):151-169.
16. Chaudhuri S., Dayal U., Narasayya V. An overview of business intelligence technology. Commun. ACM 2011, 54(8):88-98.
17. Chenhall R.H. Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Acc. Organ. Soc. 2003, 2(2-3):127-168.
18. Cheung G.W., Lau R.S. Testing mediation and suppression effects of latent variables. Organ. Res. Methods 2008, 11(2):296-325.
19. Chin W.W. The partial least squares approach to structural equation modeling. Modern Methods for Business Research 1998, 195-336. Lawrence Erlbaum Associates, Mahwah, NJ. G.A. Marcoulides (Ed.).
20. Chin W.W. How to write up and report PLS analysis. Handbook of Partial Least Squares-Concepts, Methods and Applications in Marketing and Related Fields 2010, 655-690. Springer, Berlin, Heidelberg. V.E. Vinzi, W.W. Chin, J. Henseler, H. Wang (Eds.).
21. Clark T.D., Jones M.C., Armstrong C.P. The dynamic structure of management support systems: theory development, research focus and direction. MIS Q. 2007, 31(3):579-615.
22. Cramer D. Basic Statistics for Social Research - Step-By-Step Calculations & Computer Techniques Using Minitab 1997, Psychology Press, London.
23. DeCarlo L.T. On the meaning and use of kurtosis. Psychol. Methods 1997, 2(3):292-307.
24. DeLone W.H., McLean E.R. The DeLone and McLean model of information systems success: a ten-year update. J. Manag. Inf. Syst. 2003, 19(4):9-30.
25. Dilla W., Janvrin D.J., Raschke R. Interactive data visualization: new directions for accounting information systems research. J. Inf. Syst. 2010, 24(2):1-37.
26. Dillman D.A. Mail and Internet Surveys: The Tailored Design Method 2007, Wiley, New York.
27. Dodson G., Arnott D., Pervan G. The use of business intelligence systems in Australia. The Australasian Conference on Information Systems Christchurch, New Zealand, ACIS 2008 Proceedings 2008.
28. Doll W.J., Torkzadeh G. The measurement of end-user computing satisfaction. MIS Q. 1988, 12(2):259-274.
29. Elbashir M.Z., Collier P.A., Davern M.J. Measuring the effects of business intelligence systems: the relationship between business process and organizational performance. Int. J. Account. Inf. Syst. 2008, 9(3):135-153.
30. Elbashir M.Z., Collier P.A., Sutton S.G. The role of organizational absorptive capacity in strategic use of business intelligence to support integrated management control systems. Account. Rev. 2011, 86(1):155-184.
31. Elbashir M.Z., Collier P.A., Sutton S.G., Davern M.J., Leech S.A. Enhancing the business value of business intelligence: the role of shared knowledge and assimilation. J. Inf. Syst. 2013, 27(2):87-105.
32. Emmanuel C., Otley D., Merchant K. Accounting for Management Control 1990, Springer, London.
33. Fedorowicz J., Konsynski B. Organization support systems: bridging business and decision processes. J. Manag. Inf. Syst. 1992, 8(4):5-25.
34. Ferreira A., Otley D. The design and use of performance management systems: An extended framework for analysis. Manag. Account. Res. 2009, 20(4):263-282.
35. Fornell C., Larcker D.F. Evaluating structural equation models with unobservable variables and measurement error. J. Mark. Res. 1981, 18(1):39-50.
36. Foster S., Hawking P., Stein A. Business intelligence solution evolution: adoption and use. Bus. Intell. J. 2005, 10(4):44-54.
37. Garg V.K., Walters B.A., Priem R.L. Chief executive scanning emphases, environmental dynamism and manufacturing performance. Strateg. Manag. J. 2003, 24(8):725-744.
38. Grafton J., Lillis A.M., Widener S.K. The role of performance measurement and evaluation in building organizational capabilities and performance. Acc. Organ. Soc. 2010, 35(7):689-706.
39. Grant R.M. Prospering in dynamically-competitive environments: organizational capability as knowledge integration. Organ. Sci. 1996, 7(4):375-387.
40. Green S.G., Welsh A.M. Cybernetics and dependence: reframing the control concept. Acad. Manag. Rev. 1988, 13(2):287-304.
41. Henri J.F. Organizational culture and performance measurement systems. Acc. Organ. Soc. 2006, 31(1):77-103.
42. Hou C.-K. Examining the effect of user satisfaction on system usage and individual performance with business intelligence systems: an empirical study of Taiwan's electronics industry. Int. J. Inf. Manag. 2012, 32(6):560-573.
43. Howard P. Analytics Volume 1: An Evaluation and Comparison 2003, Bloor Research, Milton Keynes, U.K.
44. Huber G.P. Organizational learning: the contributing processes and the literatures. Organ. Sci. 1991, 2(1):88-115.
45. Hulland J. The use of partial least square (PLS) in strategic management research: a review of four recent studies. Strateg. Manag. J. 1999, 20(2):195-204.
46. Jarvis C.B., Mackenzie S.B., Podsakoff P.M. A critical review of construct indicators and measurement model misspecification in marketing and consumer research. J. Consum. Res. 2003, 30(September):199-218.
47. Keen P.G.W. Shaping the Future: Business Design Through Information Technology 1991, Harvard Business School Press, Harvard.
48. Kogut B., Zander U. Knowledge of the firm, combinative capabilities, and the replication of technology. Organ. Sci. 1992, 3(3):383-397.
49. Lee M.T., Widener S.K. The performance effects of using business intelligence systems for exploitation and exploration learning. J. Inf. Syst. 2016, (forthcoming).
50. Lee J., Elbashir M.Z., Mahama H., Sutton S.G. Enablers of top management team support for integrated management control systems innovations. Int. J. Account. Inf. Syst. 2014, 51(1):1-25.
51. Leidner D.E., Elam J.J. The impact of executive information systems on organizational design, intelligence, and decision making. Organ. Sci. 1995, 6(6):645-664.
52. Liang H., Saraf N., Hu Q., Xue Y. Assimilation of enterprise systems: the effect of institutional pressures and the mediating role of top management. MIS Q. 2007, 31(1):59-87.
53. Libby T., Lindsay R.M. Beyond budgeting or budgeting reconsidered? A survey of North American budgeting practice. Manag. Account. Res. 2010, 21(1):56-75.
54. MacKinnon D.P., Lockwood C.M., Williams J. Confidence limits for the indirect effect: distribution of the product and resampling methods. Multivar. Behav. Res. 2004, 39(1):99-128.
55. Maiga A.S., Nilsson A., Jacobs F.A. Extent of managerial IT use, learning routines, and firm performance: a structural equation modeling of their relationship. Int. J. Account. Inf. Syst. 2013, 14(4):297-320.
56. Malmi T., Brown D.A. Management control systems as a package - opportunities, challenges and research directions. Manag. Account. Res. 2008, 19(4):287-300.
57. Mata F.J., Fuerst W.L., Barney J.B. Information technology and sustained competitive advantage: a resource-based analysis. MIS Q. 1995, 19(4):487-505.
58. Mintzberg H. Patterns in strategy formation. Manag. Sci. 1978, 24(9):934-948.
59. Mithas S., Ramasubbu N., Sambamurthy V. How information management capability influences firm performance. MIS Q. 2011, 35(1):237-256.
60. Moore D.L., Tarnai J. Evaluating nonresponse error in mail surveys. Survey Nonresponse 2002, 197-211. Wiley, New York. R.M. Groves, D.A. Dillman, J.L. Eltinge, R.J.A. Little (Eds.).
61. Naranjo-Gil D., Hartmann F. Management accounting systems, top management team heterogeneity and strategic change. Acc. Organ. Soc. 2007, 32(7):735-756.
62. Nelson R.R., Winter S.G. An Evolutionary Theory of Economic Change 1982, Belknap Press, Cambridge, M.A.
63. Netemeyer R.G., Bearden W.O., Sharma S. Scaling Procedures: Issues and Applications 2003, Sage, Thousand Oaks.
64. Nonaka I. A dynamic theory of organizational knowledge creation. Organ. Sci. 1994, 5(1):14-37.
65. Nunnally J.C. Psychometric Theory 1978, McGraw-Hill, New York.
66. Oh W., Pinsonneault A. On the assessment of the strategic value of information technologies: conceptual and analytical approaches. MIS Q. 2007, 31(2):239-265.
67. Otley D.T., Berry A.J. Control, organisation and accounting. Acc. Organ. Soc. 1980, 5(2):231-244.
68. Peng J., Viator R.E., Buchheit S. An experimental study of multidimensional hierarchical accounting data: drill-down paths can influence economic decisions. J. Inf. Syst. 2007, 21(2):69-86.
69. Podsakoff P.M., Organ D.W. Self-reports in organizational research: problems and prospects. J. Manag. 1986, 12(4):531-544.
70. Podsakoff P.M., MacKenzie S.B., Lee J.Y., Podsakoff N.P. Common method biases in behavioral research: a critical review of the literature and recommended remedies. J. Appl. Psychol. 2003, 88(5):879-903.
71. Podsakoff P.M., MacKenzie S.B., Podsakoff N.P. Sources of method bias in social science research and recommendations on how to control it. Annu. Rev. Psychol. 2012, 63:539-569.
72. Popovič A., Hackney R., Coelho P.S., Jaklič J. Towards business intelligence systems success: effects of maturity and culture on analytical decision making. Decis. Support. Syst. 2012, 54(1):729-739.
73. Preacher K.J., Hayes A.F. Asymptotic and resampling strategies for assessing and comparing indirect effects in multiple mediator models. Behav. Res. Methods 2008, 40(3):879-891.
74. Rai A., Patnayakuni R., Seth N. Firm performance impacts of digitally enabled supply chain integration capabilities. MIS Q. 2006, 30(2):225-246.
75. Ravichandran T., Lertwongsatien C. Impact of information systems resources and capabilities on firm performance: a resource-based perspective. 23rd International Conference on Information Systems, Barcelona, Spain 2005.
76. Ray G., Muhanna W.A., Barney J.B. Information technology and the performance of the customer service process: a resource-based analysis. MIS Q. 2005, 29(4):625-652.
77. Ringle C.M., Wende S., Will S. Smart PLS 2.0 (M3) Beta 2005, Hamburg University of Technology, Hamburg.
78. Ringle C.M., Sarstedt M., Straub D.W. Editor's comments: a critical look at the use of PLS-SEM in MIS quarterly. MIS Q. 2012, 36(1):iii-xiv.
79. Shollo A., Galliers R.D. Towards an understanding of the role of business intelligence systems in organisational knowing. Inf. Syst. J. 2015, 10.1111/isj.12071.
80. Shrout P.E., Bolger N. Mediation in experimental and nonexperimental studies: new procedures and recommendations. Psychol. Methods 2002, 7(4):422-445.
81. Simons R. The role of management control systems in creating competitive advantage: new perspectives. Acc. Organ. Soc. 1990, 15(1):127-143.
82. Simons R. Strategic orientation and top management attention to control systems. Strateg. Manag. J. 1991, 12(1):49-62.
83. Simons R. How new top managers use control systems as levers of strategic renewal. Strateg. Manag. J. 1994, 15(3):169-189.
84. Simons R. Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal 1995, Harvard University Press, Boston.
85. Simons R., Davila A., Kaplan R.S. Performance Measurement and Control System for Implementing Strategy 2000, Prentice Hall, Upper Saddle River, N.J.
86. Taylor A.B., MacKinnon D.P., Tein J.Y. Tests of the three-path mediated effect. Organ. Res. Methods 2008, 11(2):241-269.
87. Teece D.J., Pisano G., Shuen A. Dynamic capabilities and strategic management. Strateg. Manag. J. 1997, 18(7):509-533.
88. Tessier S., Otley D. A conceptual development of Simons' levers of control framework. Manag. Account. Res. 2012, 23(3):171-185.
89. Thomas J.B., Sussman S.W., Henderson J.C. Understanding "strategic learning": Linking organizational learning, knowledge management and sense making. Organ. Sci. 2001, 12(3):331-345.
90. Tourangeau R., Rips L.J., Rasinski K. The Psychology of Survey Response 2000, Cambridge University Press, Cambridge.
91. Vandenbosch B. An empirical analysis of the association between the use of executive support systems and perceived organizational competitiveness. Acc. Organ. Soc. 1999, 24(1):77-92.
92. Vandenbosch B., Higgins C.A. Executive support systems and learning: a model and empirical test. J. Manag. Inf. Syst. 1995, 12(2):99-131.
93. vom Brocke J., Braccini A.M., Sonnenberg C., Spagnoletti P. Living IT infrastructures - an ontology-based approach to aligning it infrastructure capacity and business needs. Int. J. Account. Inf. Syst. 2014, 15(3):246-274.
94. Wade M., Hulland J. The resource-based view and information systems research: review, extension and suggestions for future research. MIS Q. 2004, 28(1):107-142.
95. Wetzels M., Odekerken-Schröder G., van Oppen C. Using PLS path modeling for assessing hierarchial construct models: guidelines and empirical illustration. MIS Q. 2009, 33(1):177-195.
96. Widener S.K. An empirical analysis of the levers of control framework. Acc. Organ. Soc. 2007, 32(7):757-788.
97. Wold H. Soft modeling: the basic design and some extensions. Systems Under Indirect Observations: Causality, Structure, Prediction 1982, 1-54. K. G. Joreskog and H. Wold, Amsterdam, North-Holland.
98. Yigitbasioglu O.M., Velcu O. A review of dashboards in performance management: implications for design and research. Int. J. Account. Inf. Syst. 2012, 13(1):41-59.