The Effects of Management Information System on

Organizational Performance: In case of Commercial Bank of

Ethiopia, Hossana town

Thesis Submitted to the School of Graduate Studies of Jimma University in

Partial fulfillment of the Requirements for the Award of the Degree in
Masters of Business Administration (MBA)
BY:-
ASHENAFI ABERA DARSEBO

JIMMA UNVERSITY

COLLEGE OF BUSINESS & ECONOMICS

MBA PROGRAM

JUNE, 2021

JIMMA, ETHIOPIA
 The Effects of Management Information System on

Organizational Performance: In case of Commercial Bank of

Ethiopia, Hossana town

BY:-
ASHENAFI ABERA DARSEBO

Under the guidance of

Mr. Wubishet Mengesha (Asst. Prof)
And
Mr. Firew Mulatu (MBA)

Thesis Submitted to the School of Graduate Studies of Jimma University in

Partial fulfillment of the Requirements for the Award of the Degree in
Masters of Business Administration (MBA)

JIMMA UNVERSITY
MBA PROGRAM

JUNE, 2021

JIMMA, ETHIOPIA
 DECLARATION
I declare that this research entitled “The Effects of Management Information Systems

on organizational performance: In case of Commercial Bank of Ethiopia, Hossana

town” has been carried out by me under the guidance and supervision of Mr. Wubishet

Mengesha (Asst. Prof), and Mr. Firew Mulatu (MBA). The thesis is original and has

not been submitted for the award of any degree or diploma to any university or

institutions.

Mr. Ashenafi Abera Darsebo

Researcher’s Name Date Signature

 CERTIFICATE
This is to certify Mr. Ashenafi Abera Darsebo has carried out his thesis on the topic

entitled “The Effects of Management Information System on organizational

performance: In case of Commercial Bank of Ethiopia, Hossana town” and

submitted to Jimma University College of Business and Economics Department of

Management in Partial Fulfillment of the Requirements for Masters Degree in Business

Administration with the Regulations of the University and Meets Accepted Standard

with respect to Quality and Originality.

Approved by the Advisors:

Mr. Wubishet Mengesha (Asst. Prof)

Main Advisor Date Signature

Mr. Firew Mulatu (MBA)

Co Advisor Date Signature

 APPROVAL SHEET OF THESIS
As members of the Examining Board of the Final Open Defense, we certify that we

have read and evaluated the thesis prepared by Ashenafi Abera Darsebo, entitled

“The Effects of MIS on organizational performance: In case of CBE, Hossana

town”, and recommend that it be accepted as fulfilling the thesis requirements for the

award of the degree in Master of Business Administration.

Name of Chairman Signature Date

Name of External examiner Signature Date

Name of internal examiner Signature Date

 ABSTRACT
The main aim of this study was to examine the effects of Management information

system on the organizational performance of CBE, Hossana town. The descriptive and

explanatory research design was used and analyzed quantitatively by SPSS (V23). All

(10) branches of CBE were used to take an adequate sample size and 156 employees

selected by Yamane's (1967) formula from the total of 255 employees through

systematic sampling method. Primary sources of data were used through questioner

based on a 5point Likert scale that range from strongly disagree to strongly agree.

Descriptive and inferential analyses such as standard deviation, mean, Pearson

correlation and linear regression analysis were used. All MIS indicators have a

positive and strong effect on organizational performance of CBE, Hossana town at α =

0.05 and the developed hypothesis confirmed that MIS has an effect on organizational

performance. Further, system quality, intension to use, net benefit, and user

satisfaction were found to have a high significant effect on organization performance of

CBE, Hossana town at a p-value of .000 while the left of two variables information

quality and service quality has an effect on organizational performance of CBE,

Hossana town at α =.05 with a p-value of .012 & .010 respectively. Based on the

research result it is recommended for CBE, Hossana town should make MIS of the bank

always available to system users, hiring and training MIS specialists, providing

material and human resources supporting MIS and assess the overall practice of MIS

from time to time.

Keywords: - Management information system (MIS), organizational performance,

CBE, Hossana town, SNNPR, Ethiopia

i
 ACKNOWLEDGEMENT

Most of all I thank God for the peace and Health that he has given me because peace

and health come from the creator not from man. Next, I would like to thank my main

advisor Mr. Wubishet Mengesha (Ass. professor), and co-advisor Mr. Firew Mulatu

(MBA) for their support of me by scarifying their time and knowledge through showing

the direction how to accomplish this research. Then I would like to thanks the staff of

the commercial bank of Ethiopia, Hossana town for providing me with the relevant data

honestly. Finally, I would like to thank my parents, Mr. Abera Darsebo and Mrs.

Tegesech Chernet for all kindness you have shown me in every aspect of my life

including this journey.

ii
Contents
ABSTRACT...................................................................................................................... i
ACKNOWLEDGEMENT .............................................................................................ii
LISTS OF TABLES .....................................................................................................vii
LISTS OF FIGURES ................................................................................................. viii
ACRONYMS AND ABBRIVATIONS ....................................................................... ix
CHAPTER ONE ............................................................................................................ 1
INTRODUCTION ......................................................................................................... 1
1.1. Background of the Study ..................................................................................... 1
1.2. Statement of the problem .................................................................................... 3
1.3. Research objective............................................................................................... 6
1.3.1. General objective of the study ...................................................................... 6
1.3.2. Specific objective of the study...................................................................... 6
1.4. Research hypothesis ............................................................................................ 6
1.5. Significance of the study ..................................................................................... 7
1.6. Scope of the study ............................................................................................... 7
1.7. Structure of the Thesis......................................................................................... 8
CHAPTER TWO ........................................................................................................... 9
REVIEW OF RELATED LITERATURE ..................................................................... 9
2.1. Theoretical framework ........................................................................................ 9
2.1.1. Concept Of Management Information System ................................................ 9
2.1.1.1. Importance of management information system .................................... 9
2.1.1.2. Different types of Information system..................................................... 10
2.1.1.3. MIS and commercial bank of Ethiopia ................................................ 11
2.1.1.4. Models of IS ......................................................................................... 13
2.1.2. Organizational performance ....................................................................... 19
2.1.3. MIS and organizational performance ......................................................... 27
2.2. Empirical review ............................................................................................... 28

iii
 2.3. Conceptual Framework of the Study................................................................. 31
CHAPTER THREE ..................................................................................................... 33
RESEARCH METHODOLOGY................................................................................. 33
3.1. Research design ................................................................................................. 33
3.2. Data source and collection tool ......................................................................... 34
3.2.1. Data source ................................................................................................. 34
3.2.2.Data collection tool ...................................................................................... 34
3.3. validity and Reliability of the instrument .......................................................... 35
3.3.1. Validity of the instrument ........................................................................... 35
3.3.2 Reliability of the instrument ........................................................................ 35
3.4. Population of the study...................................................................................... 36
3.5. Sample design ................................................................................................... 37
3.5.1. Sampling technique .................................................................................... 37
3.5.2. Sample size ................................................................................................. 38
3.6. Method of data analysis .................................................................................... 39
3.7. Model specification ........................................................................................... 40
3.8. Description of study variables ........................................................................... 41
3.9. Ethical consideration ......................................................................................... 43
CHAPTER FOUR ........................................................................................................ 44
DATA ANALYSIS AND DICUSSION OF THE RESULTS .................................... 44
4.1. Introduction ....................................................................................................... 44
4.2. Demographic characteristics of respondents ..................................................... 45
4.2.1. Demographic variables analysis ................................................................. 45
4.2.1.1. Gender of respondents ......................................................................... 45
4.2.1.2. Respondents Age group ....................................................................... 46
4.2.1.3. Respondents field of Specialization ..................................................... 47
4.2.1.4. Educational Background of Respondents ............................................ 48
4.2.1.5. Respondents organizational position ................................................... 49
4.2.1.6 Respondents years of experience in the organization ........................... 50

iv
 4.3. The current Organizational performance of CBE ............................................. 50
4.3.1. The current financial performance of commercial bank of Ethiopia .......... 51
4.3.2. The current customers’ perspectives of commercial bank of Ethiopia ...... 52
4.3.3.The current Internal process perspectives of commercial bank of Ethiopia 54
4.3.4.The current Employee learning and growth of commercial bank of Ethiopia
.............................................................................................................................. 55
4.4.Management information system in current CBE .............................................. 56
4.4.1. system quality ............................................................................................. 57
4.4.2. Information quality ..................................................................................... 58
4.4. 3. Service quality ........................................................................................... 60
4.4.4. Intension to use ........................................................................................... 62
4.4.5. User satisfaction ......................................................................................... 64
4.4.6. Net benefit .................................................................................................. 66
4.5. The association between MIS and organizational performance ........................ 68
4.6. Multiple regression analysis .............................................................................. 70
4.6.1. Assumptions of multiple regression analysis ............................................. 70
4.6.1.1. Normality Test ..................................................................................... 71
4.6.1.2. Linearity assumption............................................................................ 71
4.6.1.3. Homoscedasticity test of the model ..................................................... 72
4.6.1.4. Multicollinearity test of the model ....................................................... 73
4.6.2. Regression analysis result ........................................................................... 74
4.7. Effects of MIS on organizational performance ................................................. 77
4.7.1. Effects of system quality on organizational performance .......................... 78
4.7.2. Effects of information quality on organizational performance .................. 78
4.7.3. Effect of service quality on organizational performance............................ 79
4.7.4. Effects of intension to use on organizational performance ........................ 80
4.7.5. Effects of user satisfaction in organizational performance ........................ 80
4.7.6. Effects of Net benefit and organizational performance .............................. 81
CHAPTER FIVE ......................................................................................................... 82

v
CONCLUSION AND RECOMMENDATION ........................................................... 82
5.1. Conclusions ....................................................................................................... 82
5.2. Recommendations ............................................................................................. 85
5.3. Direction for further study................................................................................. 86
REFERENCES ............................................................................................................ 87
APPENDICES ............................................................................................................. 99

vi
 LISTS OF TABLES
Table 3.1: Reliability Statistics .................................................................................... 36

Table 3.2 : Study population and branch Grade of banks ............................................ 37

Table 3.3: Sample frame of the study .......................................................................... 39

Table 4.1 : Mean and Std. Deviation table for financial perspectives ......................... 51

Table 4.2 :Mean and Std. Deviation table for customers perspectives ........................ 52

Table 4.3 :Mean and Std. Deviation table for internal process perspectives ............... 54

Table 4.4: Mean and Std. Deviation table for Employee learning & growth .............. 55

Table 4.5 : Mean and Std. Deviation table for system quality ..................................... 57

Table 4.6: Mean and Std. Deviation table for information quality .............................. 58

Table 4.7 : Mean and Std. Deviation table for service quality .................................... 60

Table 4.8: Mean and Std. Deviation table for intention to use .................................... 62

Table 4.9: Mean and Std. Deviation table for user satisfaction ................................... 64

Table 4.10: Mean and Std. Deviation table for Net benefit ......................................... 66

Table 4.11: Pearson correlation coefficient matrix ...................................................... 69

Table 4.12: Multi co linearity statistics........................................................................ 74

Table 4.13: Model Summary ....................................................................................... 75

Table 4.14: Regression coefficients ............................................................................. 76

vii
 LISTS OF FIGURES
Figure 2.1: conceptual frame work of the study .......................................................... 32

Figure 4.1: Gender of Respondents ............................................................................. 45

Figure 4.2 : Respondents age group ............................................................................. 46

Figure 4.3 : Respondents field of specialization .......................................................... 47

Figure 4.4 : Respondents Educational Background ..................................................... 48

Figure 4.5 : Respondents organizational position ........................................................ 49

Figure 4.6 : Respondents years of experience in the organization .............................. 50

Figure 4.7: Normality test ............................................................................................ 71

Figure 4.8: Linearity test .............................................................................................. 72

Figure 4.9: Scatter plot diagram................................................................................... 73

viii
 ACRONYMS AND ABBRIVATIONS
AMOS – Analysis of moment structures

BSC – Balance score card

CBE- commercial bank of Ethiopia

DSS – Decision support system

EFQM – European Foundation for quality management

ESS – Executive support system

IS – Information system

IT – Information Technology

ISSM – Information system success model

MIS – Management information system

ROA – Return on Asset

ROE – Return on equity

SEM – Structural equation modeling

SNNPR- South Nations Nationalities and peoples region

TAM – Technology acceptance model

TQM – Total Quality Management

TTF – Task technology fit

TPS – Transaction processing system

PLS – Partial least square

ix
 CHAPTER ONE
INTRODUCTION
1.1. Background of the Study
The world is in the era of information in which peoples are highly dependent on

computerized technology to perform whatever task they need with a fraction of time

than ever. Information is a weapon used to achieve the desired personal and business

goal with low cost and a high degree of quality. Organizations need information about

internal operations to ensure internal performance and effectiveness, as well as external

information to understand what is happening outside of the organization to react to

changes and adapting to the actions (Kaye, 1995).

Information should be managed and disseminated to provide the right information for

the users to ensure the effectiveness of its use. This can only do with the successful

implementation of management information systems (MIS) which determines

organizations operating in today’s world through providing valid information from

different sources. And such information-aware organizations respond to any change

timely and accurately as much as needed. MIS is an integrated hardware and software

system that collects information from both internal and external parts of the

organization to support the decision-making tendency of the managers, (Djilali, 2017).

According to, Kalhoro et al., (2019) MIS provides timely and useful information that is

free from delays and error and improving management jobs, improving and reducing

labor costs. Availability of information alone has no meaning unless it is available at

the right time as required and free from error to support management with information

leads to forward. And Georgescu and Jeflea, (2015) stated because of growing cost

pressure, resource management, and security issues the organizational information

system plays a tremendous role in regards to making a timely and efficient decision.

Organizational performance is determined by the degree of management knowledge

and existing information with the coordination and collaboration of information system

users determine the success or failure of the organization (Dandago and Rufai, 2014).
1
Any Organizational performance is affected by the degree of IS utilized and measured

in different ways from organization to organization; even it is different from authors to

authors that make it a more complicated concept.

According to, Al Khajeh, (2018) organizational performance is measured by actual

output against planned output. Also, Šehić, Šašić, & Džigal (2021),noted that

organizational performance is determined by leadership styles followed by managers

that involve financial and product market performance. Meanwhile ,Bikker, (2010),

explained that organizational performance is determined by financial, Marketing &

operational performance.

Companies and organizations operating in developing countries face the challenge of

adapting, adopting, and installing information systems, which might seem difficult due

to the expensive expertise required to prevent any risks. Alwahaishi and Snasel, (2012),

stated that the practice and implementation of current technologies need training and

huge costs for installation and repairing.

The banking sector is one of a sector which fully relies on MIS to perform day-to-day

business to deal with a large amount of data for better decision making purpose than

any other business sectors, ( Elshalom, 2016 ; Djilali, 2017).

Vannirajan and Manimaran, (2015), Stated that the presence and use of MIS in banks is

more responsive and allows them to be more competitive and productive by providing

information on deposits, loans, advances, foreign exchange, customer information,

competitor strategy, salaries, benefits, provident funds for bank employees, market

analysis, profit position, and service quality.

According to, Fikru, (2014), CBE plays an important role in economic development by

promoting domestic and foreign trade by approving and discounting bills of exchange,

as well as allowing deposits, loans, and investment securities purchases.

The researcher’s interest is to examine the effects of MIS on organizational

performance of CBE, Hossana town by using MIS indicators and the BSC model to

measure organizational performance.

2
1.2. Statement of the problem
To achieve strategic business goals, today's companies invest heavily in information

systems. The ability to access data stored at various locations on a range of hardware

and platforms has improved thanks to significant technological advancements in

communication such as Multimedia, Graphical User Interfaces (GUI), Internet, Web,

and so on, making MIS a more appealing and effective proposition,(JNU, 2013, p .17).

A management information system (MIS) is a set of interconnected components that

gather (or retrieve), process, store, and distribute data to help decision-making and

control in an enterprise. Information systems can help managers and staff evaluate

problems, envision challenging problems, enhance organizational excellence,

competitive advantage, and survival, and achieve higher levels of quality and

productivity in business operations, in addition to promoting decision making,

planning, and control, ( Kenneth & J.Laudon, 2008, p. 42-46).

Study conducted by Kalhoro et al., (2019), at Sindh Province, telecommunications

companies found that management information system has positive effects on the

performance of telecommunications companies. And, Azeez and Yaakub, (2019a)

Conducted a study in Iraq at Missan Oil Company by using MIS indicators to measure

the effect of MIS on organizational performance. The study found that information

quality, user satisfaction, and net benefits were positively related, however system

quality, service quality, and intention to use were negatively related to organizational

performance. Also, Azeez and Yaakub, (2019b) Conducted a study in Iraq at Missan

Oil Company by using MIS indicators with mediating role of TQM to measure the

impact of MIS on organizational performance. The study found that information

quality, user satisfaction, and net benefits were positively related, however system

quality, service quality, and intention to use were negatively related to organizational

performance, positive relationship among MIS indicators and TQM except for service

quality, positive relationship between TQM and organizational performance and TQM

mediates the relationship between all MIS indicators and organizational performance

3
except for service quality. While, Bahari and Mahmud, (2009) in their study at Kota

Kinabalu, Sabah, Malaysia revealed that the company’s performance is positively and

significantly affected by information quality, service quality, and system quality.

Omiunu, (2015), in his study conducted in Nigeria, found that the use of the system and

overall MIS has an insignificant effect on organizational performance.

Here there is a contradiction in findings related to MIS and organizational performance

particularly with MIS indicators such as - system quality, information quality, service

quality, intention to use (use) of system, user satisfaction, and net benefits. However,

these variables are determining the performance of the organizations, especially for

service-providing organizations like banks. And it is difficult to conclude that findings

revealed in the case of one organization might not be similar for all organizations

because information system success is determined by technological, organizational,

and environmental factors, (Ghobakhloo and Tang, 2015).

The banking sector is one of a known sector that fully influenced by the use and

implementations of MIS to satisfy their customers because satisfaction is the direct

replica of quality service provided ( Elshalom, 2016).

When it comes to the case of Ethiopia studies in banks conducted by Shegaye, (2018)

founds that MIS in CBE used for only transaction purposes and fails to do the expected

result concerning providing information for decision-making purposes. Similarly,

Dereje, (2019), founds utilization and availability of MIS in CBE are characterized by

different factors such as highly interrupting networking service, the minimum

utilization rate of Existing MIS components, lack of effective and efficient IT

infrastructures, and incompleteness of decision process. Elshalom, (2016), on his study

of selected 5 banks from both private and public banks the study concluded IS had a

strategic impact on commercial banks of Ethiopia and software and database were

neither high nor low impact which needs further research. As it is seen in Ethiopia few

studies were done in MIS, and most of them were done on utilization and availability of

MIS in relation to decision making by focusing only on administrative or managerial

4
positions by excluding non-managerial employees in their studies and even though the

existing studies result implies that still there is a problem with successful

implementation and use of MIS in Ethiopian banks.

This study conducted based on the effects of MIS on organizational performance of

CBE by using MIS indicators such as; system quality, information quality, service

quality, intention to use (use), user satisfaction, and net benefit and organizational

performance is measured by the BSC model which includes financial perspectives,

customers perspectives, internal operation, and employees learning and growth.

The student researcher has been searched for existing literature on the effect of MIS on

organizational performance in Ethiopia generally and particularly in Hossana town.

There is no any adequate evidence that directly linked with an entitled topic “The

effects of MIS on organizational performance” based on evidence of a search for

published and unpublished documents on different sites available online. Based on

listed evidence this study conducted to examine the effects of MIS on organizational

performance of CBE, Hossana town.

This study has aimed to answer the following questions:

 What is the effect of system quality on organizational performance?

 What is the effect of information quality on organizational performance?

 What is the effect of service quality on organizational performance?

 What is the effect of intention to use on organizational performance?

 What is the effect of user satisfaction on organizational performance?

 What is the effect of net benefits on organizational performance?

5
1.3. Research objective
1.3.1. General objective of the study

The general objective of the study was to examine the effects of MIS on the

organizational performance of a commercial bank of Ethiopia, Hossana town.

1.3.2. Specific objective of the study

 To examine the effect of system quality on organizational performance.

 To examine the effect of information quality on organizational performance.

 To examine the effect of service quality on organizational performance.

 To examine the effect of intention to use (use) on organizational performance.

 To examine the effect of user satisfaction on organizational performance.

 To examine the effect of net benefits on organizational performance.

1.4. Research hypothesis

In order to address the objectives of this study, the following six hypotheses were

developed for this research that are:

H1: System quality has significant and positive effects on organizational performance.

H2: Information quality has significant and positive effect on organizational

performance.

H3: Service quality has significant and positive effects on organizational performance.

H4: Intension to use has significant and positive effect on organizational performance.

H5: User satisfaction has significant and positive effect on organizational

performance.

H6: Net benefit has significant and positive effects on organizational performance.

6
1.5. Significance of the study
The effect of the Management information system is tremendous for the banking

industry through making the system easy to internal and external users of the system.

In regard to this, the study provided critical information about the nature of

information quality, service quality, system quality, user satisfaction, intention to use,

and net benefit of the system generally to the commercial bank of Ethiopia and

particularly to CBE Hossana town which will help to modify the implementation and

practices of MIS. Also, the study will be used as a reference for other researchers

interested in conducting studies in the same and related study topic by providing

relevant information.

Finally, the study forwarded important suggestions and recommendations to managers

of the banks which will help them to cross-check what is and what should be.

1.6. Scope of the study

This study conducted on the effect of MIS on organizational performance commercial

bank of Ethiopia, Hossana town. The analyzed and interpreted result of the data was the

direct outcome of the data collected from CBE, Hossana town due to the fact it is

difficult to generalize the result of this study to all CBE branches in Ethiopia. MIS is

measured by different types of variables based on organizations' nature, this study used

system quality, information quality, service quality, intention to use, user satisfaction,

and net benefits to examine the effects of MIS on organizational performance. And the

data used in this study was collected through questioner based on sample size.

Generally, this study is geographically limited to SNNPRS, Hadiya zone, Hossana

town, and institutionally limited to CBE.

7
 1.7. Structure of the Thesis
The study was organized into five chapters. The first chapter presents the introduction

part which contains: background to the study, a statement of the problem, research

hypotheses, general and specific objectives of the study, the significance of the study,

the Scope of the study, and the structure of the thesis. The second chapter is about

literature review, which incorporates: theoretical review, empirical review, and

conceptual framework of the study. While the third chapter contains a brief description

of the research design, as well as the methods in which the data were collected,

presented, and analyzed. The fourth chapter presents, analyzes, and interprets the data

related to the objective of the study. Finally, the fifth chapter was about conclusions,

recommendations, and suggestions to future researchers.

8
 CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1. Theoretical framework
2.1.1. Concept Of Management Information System
MIS stands for a management information system, which is made up of three words:

management, information, and system (s).Management is a group of professionals in

managerial positions who have responsibilities and expertise in management functions

to control all of an organization's resources, including money, materials, people, and

other resources. Information is the meaningful collection of data from different sources

that are used for specific organizational day-to-day requirements in different levels and

functions. A system is a collection of hardware, software, people, and networks; that is

used to monitor, capture, process, and disseminate data for organizational purposes for

individuals and groups both within and outside the organization (McLeod, 2010).

Yusuf Munirat et al., (2014), define a Management Information System (MIS) as a

subset of a company's overall internal control that covers management accountants' use

of people, records, technologies, and processes to solve business issues like costing a

product, service, or a company's overall strategy. Also, Soni,(2020) defines

management information system (MIS) as a backbone of digitalized management that

having both hardware and software, which is used for analyzing companies' profit and

goals from time to time and has an aim of providing valuable information regard to

tasks performed by employees and departments. MIS is “a part of information system

(IS) that used in an organization to manage processes, people, resources, finance,

technologies, and services” (Kengatharaiyer S .et, al., 2009).

2.1.1.1. Importance of management information system

Since the result that is perceived from MIS is based on internal and external influences

that an organization has, there is no widely agreed application of MIS for all

9
organizations while MIS helps organizations to achieve their overall pre-planned goals

by inspiring, tracking, and monitoring the organization's efforts, (Naranjo-Gil, 2010).

MIS internally provides business controlling procedures that are needed by

management accountants to solve business problems such as costing and business

strategies with an application of people (managers and employees ), documents,

technologies like ICT, and other procedures (Roman, 2011). MIS act as a benchmark in

deciding for managers, business owners, and other key decision-makers. Unless

appropriate the decision will be made is meaningless due to lack of confirmed quality

information. So, MIS helps to check an existing business whether on the right track or

not.

According to, AL-Adwan,(2016), MIS allows organizations to recognize their

strengths and weaknesses based on sales reports and staff performance records, provide

a comprehensive image of the business, serve as a tool for communication and

planning, provide customers with data, gain a competitive advantage, and improve

timely decision-making. Also as noted by Saani, (2020, pp. 45-49) management

information system (MIS) is important for a business organization through Supporting

decision making, Enhancing competitiveness, improving productivity, enable to prefer

customers, achieving strategic advantage, provide quality technology, and enables a

business to Cope with globalization.

2.1.1.2. Different types of Information system

There are many types of information system that practiced in organizations however

here the four major types of IS are discussed below:-

Transaction-Processing Systems (TPS)

TPS is used to record, process, validate, and store transactions that occur across a

company's various functional areas for future retrieval and use.

A TPS's data capture and storage serve two purposes. First, to begin with, they should

be made available to those parts of the organization (as well as external entities) where

they are required to support day-to-day, routine operations. Second, it is used to inform

10
the management reporting system with data and generate performance reports on the

operations' effectiveness and productivity (Rahmatian, 2003).

Decision Support Systems (DSS)

A decision support system (DSS) is a sub-discipline of information systems (IS) that

focuses on assisting and strengthening managerial decision-making. Personal decision

support systems (PDSS), group support systems, executive information systems,

internet analytical processing systems, data warehousing, and business intelligence are

all examples of DSS in modern professional practice (Arnott and Pervan, 2005).

Management information system (MIS)

MIS serves managers by providing important information by taking important data

from TPS to generate periodic data reports about historic and current information.

Objectives of MIS vary according to the needs of individual organizations and different

from regular information systems in that they are used to analyze other information

systems applied in operational activities in the organization. Academically, the term is

commonly used to refer to the group of information management methods that support

managerial decision-making (Kenneth & J.Laudon, 2013, p. 45-46)

Executive support system (ESS)

Executive Support Systems are intended to provide necessary information to executives

and senior management to take non-routine and strategic decisions.

ESS important to drive strategic planning, facilitate change management, identify new

business opportunities to empower employees, and Enhance understanding of the basic

objective of the organization (Chichernea, 2009).

2.1.1.3. MIS and commercial bank of Ethiopia

MIS assists managers in making decisions and motivates workers in the workplace by

making working environments easier, providing a space for knowledge coordination

and control, and allowing complicated activities to be completed with the most efficient

use of resources to become more productive and efficient in the overall organization

efficiency (Olumoye, 2013).

11
Banks are the most dominant sectors that play a great role in the development of the

economic growth of the nations. According to Nsour, Shobaki and Alizoubidi,(2019)

number of reasons why MIS is used in the banking industry. Here are a few of them: IS

practices are legally binding and expensive, but they come with some benefits, such as

sourcing a structural environment, services, and active administrative staff that help to

promote intellectual development through internet marketing.

It is expected that the system will meet the knowledge needs of a person, a group of

people, management functionaries, managers, and top management.

Olumoye, (2013) “Information does not serve as the only alternative for the success of

management in the same saying there is no management if there is no adequate

information”. It means that information and management must go parallel to provide a

meaningful performance of the organization with supporting one another.

Management information system (MIS) is used to manage the information flow to be

meaningful that provide the right information at the right time to the right person with

the right quality.

Human resource information systems, for example, play an important role in areas such

as personnel management; pay administration, leave of absence recording, ability

inventory, medical history, performance assessment, training and growth, HR planning,

recruiting, job planning, negotiations, and others by providing information. The reason

for its failure is the lack of sufficient training for employees in addition to the poor

practice of IT to all departments of the bank (SB, 2016).

In any organization, information system practice is critical for managing the flow of

information among departments and ensuring the free flow of information from a

centralized common source known as the database management system. In this regard,

CBE faced difficulties in implementing IS, including a shortage of qualified manpower,

inadequate infrastructure, and information quality, restricted network capacity or

system disconnection, a lack of technical innovation, unauthorized access to the

12
system, poor information available for decision-making, service quality, and errors

during data recording (Kechema.T,et al. 2019).

CBE plans and executes MIS well, but due to dynamic changes in service requirements

and a failure to go through the process of changing and updating personnel capability,

the MIS is not fully operational. Furthermore, the bank is attempting to provide service

per customer standards, but this is not always effective in the case of CBE (Animaw,

2013).

As indicated by Shegaye, (2018), MIS in the commercial bank of Ethiopia, assists in

Strategic Planning, Management Control, Operational Control, and Transaction

Processing by offering a range of systems such as Query Systems, Research Systems,

Modeling Systems, and Decision Support Systems.

MIS assists in the decision-making process by providing information, communication,

and problem identification. The quality of service offered by CBE is disrupted by

power outages, weak internet connections, and system maintenance issues, causing

bank customers to be unhappy with the bank's service, and the bank's management to

pay attention (Mesfin, 2019).

2.1.1.4. Models of information system

A. Technology acceptance model (TAM)

Davis (1989) established the Technology Acceptance Model (TAM) as an adaptation of

the Theory of Reasoned Action (TRA) to quantify the level of technology acceptance

and acceptance of using the Internet to conduct online transactions. TAM assumes that

users' behavioral intentions to utilize a specific system may be used to predict actual

system utilization. The original level of consumer technology acceptance can be

measured using four dimensions: perceived usefulness (measure the degree to which

the system enable the system user to perform the job), perceived ease of use (the extent

to which using system reduce users effort to perform a certain task), attitude toward

new technology usage (an individual evaluation of behavior on performing

13
performance), and intention toward new technology usage (refers the motivation to use

and usage frequency of the technology provided by the organization) (Ariffin, 2017).

The theory indicates that an individual behavioral intention to use is the most important

factor of an information system which is determined by attitude towards to use

(determined by perceived usefulness and perceived ease of use) and perceived

usefulness (indicated by perceived ease of use) (Huang, 2017).

B. Task Technology Fit (TTF)

It is a model for evaluating how information technology contributes to performance by

assessing the task and technology aspects. Consumers' ability to use technology is

believed to be determined by both task and technology characteristics. Despite the fact

that the model has been widely used in many information technology studies, research

that combines TTF and TAM is lacking and ambiguous. Individual-technology fit (IT)

and task-technology fit (TTF) are two dimensions of TTF (TT). Individual-technology

fit is depicted in this scenario (IT). The more familiar a person is with a system, the

more he or she understands how it operates (Ariffin, 2017).

C. Information system success model (ISSM)

Several authors proposed their model to measure information system success. In the

end, the model proposed by DeLone and McLean gets acceptance by most of the

researchers. The model for the first time introduced by Delone and McLean, (1992) ,

and the model include six information system success measurement dimensions like

system quality, information quality, use, user satisfaction, individual impact, and

organizational impact. In 2003, the model was updated because of some criticism, and

later it was modified through adding service quality, and Intention to Use was added

and the original dimensions of Individual and Organizational impact were combined

into a Net benefit. Delone and McLean, (2003) information system success model

includes information quality, system quality, service quality, use (use of the system),

net benefit, and user satisfaction.

14
As it is suggested by, Urbach & Muller, (2012), More research using the complete

model ISS model of DeLone and McLean, (2003) will help to extend an understanding

of the model’s overall validity.

Researchers like Azeez and Yaakub, (2019a) ; Azeez and Yaakub, (2019b) conducted a

Management information system by using the ISS model of DeLone and Mclean, 2003.

Let see each dimensions of ISSM of DeLone and McLean, (2003)

A. System quality

It refers to measures of the information system and compatibility of hardware and the

software work together, (Pérez-Mira, 2010). Where , Ojo, (2017) defines system

quality as the measure of desirable characteristics of an information system such as:-

perceived ease of use system features, response time, and flexibility.

According to DeLone and McLean(2003), System quality is measured in terms of

ease-of-use, functionality, reliability, flexibility, data quality, portability, integration,

and importance while, Sedera and Gable, (2004) listed nine attributes of system quality

such as – ease of use, ease of learning, user requirements, system features, system

accuracy, flexibility, sophistication, integration, and customization.

According to Gorla, Somers and Wong, (2010) System quality have two categories of

attributes; system flexibility feature and system feature (end-user flexibility or system

sophistication). Further, the flexibility dimension of the system reflects the fact that the

system is designed with useful/required features (and without unnecessary features)

and the fact that the system designer can make software modifications easily while, the

sophistication of the system refers to a user-friendly system that is easy to use, well

documented, has a short processing time, and uses modern technology to make systems

user-friendly. Therefore, System quality is a user's evaluation of the technical

capabilities of the system and its usability.

B. Service quality

In today’s competitive environment, consumers are increasingly aware of alternatives

on offer concerning services and expected standards of service the reason is they have

15
many options to switch (Vannirajan and Manimaran, 2015). This forces organizations

to increase service quality to maintain their customers.

Service quality is considered a multidimensional construct; most researchers have used

the SERVQUAL model to measure service quality and customer satisfaction and the

model consists of five dimensions: reliability, responsiveness, assurance, empathy, and

tangibles, (Pakurár et al., 2019). These dimensions are used to imply a service quality

gap (the difference between customers' expectations and perceptions of the service).

According to, Addisalem,and Desta, (2019), Service quality is the overall effect of

service performance which determines the degree of satisfaction perceived from the

provided service by the user, meanwhile, Li et al., (2021) assume that service quality

will have an affirmative effect on user satisfaction which characterized by

cost-effectiveness, user-friendliness, and technical support.

IS services will become better aligned with organizational goals, resulting in improved

quality of decision making and improved profitability (internal organizational

efficiency), better anticipation of customer demands, and more accurate sales

forecasting (Gorla, Somers and Wong, 2010).

Information system specialists play a major role for the organizations by maintaining

communication with business units of the organization; understand users need well,

prompt provision of services to end-users by IT units to identify better business idea.

C. User satisfaction

Satisfaction depends on different factors, such as psychological, economic, and

physical factors.

However, satisfaction is considered as a set of negative and affirmative reactions to a

collection of elements and a type of emotional attitude, Li et al., (2021). Satisfaction

has been defined as the difference between expectation and performance, but there are

differences between quality and satisfaction (Verbeke et al., 2010). Satisfaction is the

perception that resulted from the service delivered or product is used while quality has

its standards before it is provided or produced, which means one can easily identify the

16
quality before using the product or service. The concept of satisfaction is an abstract

concept than the case of quality.

Expectancy-disconfirmation theory stated that satisfaction is the result of subjective

comparisons between expectation and perceptions.

The concept of satisfaction is more important in the case of service-providing

organizations like banks and all banking channels must have to develop a strategy in

achieving high customer satisfaction to increase perceived qualities to customers (Li et

al., 2021).

In these cases, user satisfaction is the satisfaction perceived by employees of the

company especially with the advantage of IS. This user (employee satisfaction) is

measured based on the flexibility, accuracy, reliability, and timeliness of the system

provided by the companies. That is why employees in today’s business are more

dependent on the availability and quality of information systems.

D. Information quality

Quality of information has been discussed a great deal in the information system

literature. Information Quality is a user's evaluation of the system's delivery of

communication of knowledge. The value of an information system is estimated by the

managers and other concerning bodies who directly engage in decision-making.

DeLone and McLean, (2003) used five dimensions to measure information quality such

as - accuracy, timeliness, completeness, relevance, and consistency.

Information is important in today’s business world; businesses without information are

like fishes out of water. The existence of information by itself has no meaning but it has

to be shared among the members of the organization for organizational work and its

flow is should be multidirectional and manageable. Unless the information is like a

military person in the field of war who holds a gun that has no bullet.

To increase the quality of information it is mandatory to increase ease of use to users,

reducing noise, improving data quality, adapting information to increase its pertinence,

and saving users time and money (Choo, 1995) . Organizations expected to have the

17
ability to assess the information quality to assess the status of their organization's

information quality and monitor its improvement (Gorla, Somers and Wong, 2010).

So the organizational system to be opens to taking information resources outside of the

organizational environment and must transform this information resource into

knowledge, processes, and structures (Choo, 1995)

The amount and quality of information flow determine the decisions and objectives

predetermined by the organization.

E. system Use (Intension to use)

The degree and manner in which staff and customers utilize the capabilities of an

information system may be determined as the amount of use, frequency of use, nature

of use, appropriateness of use, the extent of use, and purpose of use, (Petter, Delone &

McLean, 2008).

This is all about the interaction between the system and the users of the system in

day-to-day activities to perform tasks. Generally, it determines the productivity of the

organization with a degree of intimacy created between the organizational information

system and the organization's employees or information users.

F. Net benefit

According to Petter, Delone & McLean, (2008) Net benefit is the “extent to which IS

are contributing to the success of individuals, groups, organizations, industries, and

nations. For example, improve decision- making, improve productivity, increased

sales, cost reductions, improved profits, market efficiency, consumer welfare, creation

of jobs, and economic development”. This indicates that the overall benefits resulted

from MIS to the organization and its Stakeholders.

It has been measured by sometimes assessing the individual impact or organizational

impact. This indicates that the net benefit of the Information system the combined merit

perceived by both the organization overall and system users.

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2.1.2. Organizational performance

The literal meaning of performance is “the mood or function of operation quality”

(Azeez and Yaakub, 2019a ; Azeez and Yaakub, 2019b)

Organizational performance is quantitative information and must provide detailed

descriptions of the organization's pre-planned accomplishment of targets, priorities,

values, strategies, schedules, policies, and procedures to achieve economic objectives

such as sustainability or continuity (Almansoori, 2021).

However, only measuring quantitative aspects of the organization is not acceptable

because organizations have their assets that could not be measured numerically,

because performance is the outcome of both quantitative and qualitative factors. So,

focusing only on financial/quantitative/ aspects has a negative impact on the

organization's competitive advantage. So, Organizational performance “is not

one-dimensional theoretical construct nor is it likely to be characterized with a single

operational measure” (Tetyana and Popa, 2009).

Al-Taai, (2021), describe organizational performance as overall performance based on

performance resources (the value of resource utilization), output performance (the

ability of an organization to deliver the highest quality product or service to ensure

customer satisfaction), and flexibility performance (organization ability to coup up

when changes occur within and outside of the organization).

And concern for employees and customers is a contemporary business issue to that

organization's focus (Tetyana and Popa, 2009 ; Ishaq Bhatti and Awan, 2013) based on

the fact that they are driving forces of any organizations performance.

Organizational performance is measured with different dimensions such as financial

perspectives, market, and shareholder value, and sometimes production capacity

performance may be analyzed (Mohamed, A.O. and Mohamud, 2021)

Organizational performance is the achievement of measurable goals that are dependent

on leadership decisions and strategies that contribute to benefit, profitability, and

19
organizational learning, as well as employee engagement and dedication to the

organization's performance (Abubakar et al., 2019).

Measuring input, activities, output, and the result is all part of measuring organizational

performance. It is important to understand what resources were used to manufacture a

specific product or service (input), what steps were taken in the manufacturing phase

(process), what product or services were generated in what quality (output), and what

effect did the produced product or service have (Nalwoga and Van Dijk, 2016).

Generally, organization performance measurement into two dimensions like: -

objective and subjective measurement. An objective measure of performance is

focused on financial aspects such as - ROI (return on investment), ROA (Return on

Asset), NI (net income), and others. Even this measurement is called Accounting

measurement which depends on the accounting rule of GAAP (General accepted

accounting principle). When it comes to a subjective measure of performance, it

measures organization performance based on information gathered from leaders,

managers, and other concerning bodies in each business unit of the organization

(Nalwoga and Van Dijk, 2016).

Authors such as; ( Tetyana and Popa, 2009 ; Kaplan, and Norton, 1992) criticize the

objective (financial) method because of its focus only on the current performance of the

organization than a long run condition of the organization and even all organizations

may not have objective data which is based on accounting or financial perspectives in

such cases it is mandatory to use subjective measure.

Performance measurement is depending on the nature of the organization we are going

to deal with. For example, a performance measure for private and public organizations

is different. In the case of private organizations, we can measure through models such

as EFQM (European Foundation for quality management) excellence and BSC

(Balance sore card). But, the performance measurements used to measure

20
organizational performance in case of public organizations are like the value chain

model and the framework for performance assessment (Nalwoga and Van Dijk, 2016).

A. European Foundation for quality management (EFQM) excellence model

EFQM excellence model is developed by EFQM in 1996 which focuses on continuous

improvements on nine components such as leadership, employee management, policy

and strategy, resources, processes, employee satisfaction, customer satisfaction, impact

on society, and business result to provide a systems perspectives to understand

organizational performance based on TQM concept (Wongrassamee, Simmons and

Gardiner, 2003). EFQM excellence model has both strength and weakness in regard to

measuring organizational performance. For example, some of its strengths are: -

provides support to management on the way how to achieve changes in an organization

through TQM concept, facilitate organizations to assess against criteria of the model

and enables organizations to understand their current performance position and to use

the bench mark to implement continuous improvement (Wongrassamee, Simmons and

Gardiner, 2003). However, EFQM model has also its own weakness such as :- it can’t

clarify what strategies should be implemented to achieve Continuous improvements

and it fails to mention directly target performance (Wongrassamee, Simmons and

Gardiner, 2003; (Nalwoga and Van Dijk, 2016).

B. The value chain model

It refers to an organization that is receiving inputs which are deployed in particular

processes, procedures and programs which produce outputs. Contributions from stake

holders (partners and co-producers) could emerge spontaneously without any

encouragement from the organization. Further the organization prepare written contract

with partners to motivate private individuals and organizations to contribute to public

goals (Nalwoga and Van Dijk, 2016) . Theories and practices in organizations show

that a relationship between employees and customer satisfaction and customers,

relationship with bottom lines. An improvement in employees’ attitude and behavior

leads to an improvement in attitudes and behaviors customers and an improvement in

21
customers attitudes and behaviors leads to growth and profits (Rapcevi, 2014). There

are two main value flows such as: - primary activities (service concept design, physical

resources procurement, human resources selection and management, service creation

and delivery) and support activities (strategic planning, financial management, and

brand management) (Rapcevi, 2014) .

C. The framework for performance assessment

Worthington and Dollery ,2000 ; Ancarani (2009) as cited by Nalwoga and Van Dijk,

(2016) the frame work is based on the assumptions to analyze performance set of

outcome indicators should be considered separately. Accordingly performance is

categorized in to 3 components such as; efficiency (how an organization uses resources

wisely in the process of producing output), effectiveness (indicated by appropriateness,

accessibility and quality) and customer satisfaction.

D. Balanced score card (BSC)

Implementing a balanced scorecard (BSC) in measuring organizational performance is

get acceptance by researchers of management ,( Mafini and Pooe, 2013 ; Nalwoga and

Dijk, 2016 ; Abubakar et al., 2019; Dastmalchian et al., 2020). BSC for the first time

developed by, Kaplan, and Norton, (1992) comes with four different perspectives such

as- financial, customer, internal business, and learning and growth. BSC is becoming a

popular performance measurement system that combines the use of financial and

non-financial measures such as financial perspectives, customer perspectives, internal

business perspectives, and learning and growth (Crabtree and DeBusk, 2008).

In a current time organization divert their attention from focusing on financial aspects

because it is not an efficient way of performance measurement and modern

performance measurement methods were later developed tends to be better, which is

called BSC, (Dinçer, Hacıoğlu, and Yüksel, 2017).

BSC is a short document briefly summarizing loading and lagging performance

indicators that deal with four perspectives which include financial, customer, internal

process, and learning and growth (L&G) which answer four basics, such as How do

22
customers see us? What must we excel at? Can we continue to improve and create

value? And how do we look to shareholders? Kaplan, and Norton, (1992)

BSC measures are based on the premise that each measure has its cause and effect

relationship with leading (non-financial, future financial performance drivers) and

lagging (financial performance indicators) (financial, results of past actions). It is

simple to conduct for workers following company plans once these leading and lagging

indicators are established by distinguishing bad performance from measurement lists,

(Malagueño, Valeiras, and Conde, 2018).

Within this context, the balanced scorecard approach can be used for a

multi-dimensional analysis of performance measurement.

Let can see each perspective of the BSC model.

i. Financial perspectives

Financial performance measures show whether a company's strategy implementation

and execution to meet financial targets has to do with profitability, growth, or

shareholder value, and those goals stated simply to survive, to succeed, and to prosper (

Kaplan, and Norton, 1992).

Historically, financial measures are the best measures to evaluate the company’s

performance, such as the physical values of sales and profits or percentage return on

equity and assets, ( Bhatti and Awan, 2013). According to authors like, Eltayeb and

Osman, (2020) financial performance is called as traditional performance that measure

performance based on return on assets (ROA), return on equity (ROE), or liquidity ratio

(LQTY).

According to, Kefe, (2019) financial measures consist of three aspects: business

growth, value creation, and profitability. And defines the terms as; Business growth is

measured by the Revenue to assets ratio, rise in revenue and assets, and revenue from

new goods and services. The value creation is measured by Economic value added

(EVA), market value added (MVA), stock price, and dividends are all used to calculate

value creation and Profitability is measured by profit margin, ROE, ROA, ROI, etc.

23
This measure is criticized by some researchers, Richard et al., (2009) for its weakness

that only focusing on the current situation than focusing on the long-run objective to

enhance the existence of the organization to in line with local and internal variables.

But it can be important to measure performance together with another BSC perspective

to measure the overall performance of the business.

ii. Customer Perspectives

Customer is a driving force in any business world ever. The success of an organization

is the outcome of what is invested in customers. Organizations focus on determining

the need and choices of customers through a different market survey to understand the

perception and attitudes towards certain products or services. Since the ultimate goal of

any business is serving customers according to their request and expectation to satisfy

their desire it is better to focus on their needs and wants as per their expectation.

Customer perspective refers to an organization's ability to keep customers by winning

and maintaining long-term relationships with them than rivals do (Boadu, 2019).

Managers play an important role in this regard by ensuring that the organization's

policies and objectives are aligned with the needs of customers, with a focus on

customer satisfaction, customer complaints, customer loss/gain, loyalty and trust, sales

of new products, and so on, Al-Najjar and Kalaf, (2012).

iii. Internal business process Perspectives

Organizations must translate their plans and policies into specific actions that help them

to fulfill their customers' needs from processes, decisions, and actions until they have

developed a plan that leads to greater results with driving forces of customers. Internal

business perspective, according to , Kaplan and Norton,(2001) involve four

organizational activities:

1) Encourage innovation in the development of new products and services.

2) Improving and reinforcing existing customer relationships to boost customer

loyalty.

24
3) Enhancing supply chain management, internal procedures, asset utilization,

resource-capacity management, and other processes, achieve operational excellence.

4) Developing productive fasten with external stakeholders become a good corporate

citizen.

Internal balanced scorecard measures should begin with the business processes that

have the greatest impact on customer satisfaction, such as cycle time, quality, staff

skills, and productivity, (Kaplan & Norton, 1992).

To be effective, companies must provide training for their employees to increase

productivity and decrease deficiency of resources, reducing working time wastage by

providing quality materials and types of equipment as needed as per the nature of the

job.

Generally, trained employees and existing updated know-how to ensure the best

performance of the organization.

Managers need to focus on those critical internal operations that enable them to satisfy

customer needs by identifying and measuring their core competencies, technological

requirements and identifying processes that can satisfy customers.

iv. Learning and growth (L&G) Perspectives

The learning and growth measures were aimed at improving the quality of the

workforce and improvement of other perspectives to increase skills and loyalty.

Employees need a quality working environment and job security in addition to

company growth and objective.

As Kaplan and Norton, (2001), noted that Managers should identify the employee

strengths and skills, technologies, and organizational working environment required to

sustain a plan in the learning and growth perspective. These priorities allow a

company’s human resources and information technology to align with the strategic

needs of its vital internal business process, differentiated value proposition, and

customer relationships.

25
Companies provide a full strategy map through the four main perspectives after

discussing the learning and development perspective.

Explaining consumers' preferences, enhancing market procedures, and achieving and

sustaining overall financial training and development are all part of the perspective,

(Kefe, 2019).

These perspectives deal with the commitments, motivations, educations, and

satisfaction among employees of the organization. Employees are driving forces to the

organization's long-term and financial objectives. Unless employees are satisfied, the

organization's productivity, efficiency, and long-term strategy are questionable,

(Richard et al., 2009).

Massingham, Massingham and Dumay, (2019), identified four quadrants that represent

organizational learning and growth such as Sharing (capturing and sharing best

practices and lessons learned), Competency (internal development, acquisitions, and

collaborations to fill human capital gaps), Cultural alignment (Creativity, versatility,

adaptability, and openness to change) and Process: (speed of decision making and

learning growth). Organizations must build an appealing working atmosphere that

encourages workers to be creative, dedicated, intellectually curious, and open-minded

to learn and positively affect the company and themselves.

Generally, L&G determined as Human capital (skills, talent, and knowledge),

information capital (databases, information systems, networks, and technology

infrastructures such as safety systems, data protection systems, and infrastructure

investments and organizational capital and Organizational capital (culture, leadership,

employee alignment, teamwork, and knowledge management).

In this study, the BSC model was used to measure organizational performance because

of:-

i. BSC is better in which focus on corporate strategy (Nalwoga and Van

Dijk,2016).

26
 ii. BSC allows firms to focus on multiple strategic objectives and agendas at

once, such as being more customer-centric, reducing response times,

increasing efficiency, emphasizing teamwork, speeding up new product

launches, and managing for the long term (Kaplan, and Norton, 1992).

iii. BSC forces managers to consider all critical organizational measures together,

allowing them to see if one area's progress was accomplished at the cost of

another (Kaplan, and Norton, 1992).

iv. It links business performance across different classes , such as- financial and

non-financial, internal and external that has direct linkage with the strategy

(Valmohammadi and Servati, 2011; Kaplan, and Norton, 1992).

v. According to Kaplan, and Norton, (1992) “it is a stop-down representation

of the company's mission and strategy, forward-looking, combines internal

and external interventions, and assists managers in focusing resources on

activities that will perform.”

2.1.3. MIS and organizational performance

The continuous emergence of new and sophisticated innovative technologies in

Information Technology enables entrepreneurs and technology know-how firms to

create new business models, build new business processes, and transform the

day-to-day conduct of business (Sarveswaran, Nanayakkara, and Perera, 2009).

The information system is not concerned with IT only but also deals with business

systems, processes, and people to manage the information effectively. Including

information system, the management of the organization has a responsibility to manage

resources, which requires an effective management information system (MIS) (Aydiner

et al., 2019).

A management information system is one of the modern and important methods that

provide reliable, accessible, and understandable information timely to the users of the

system. Telecommunications, computer systems, and global trade of intense

competition all play a role in the information system's increasing intensity. Information

27
is critical for improving an organization's internal performance and effectiveness, as

well as becoming aware of its external environment to react to and adapt to changes in

actions, attitudes, and decisions (Kaye, 1995).

An organized MIS is critical for maintaining quality service to customers by supplying

quality information that depicts business success over time periods, allowing managers

to react quickly to changes that arise both inside and outside the organization. So MIS

assists managers of organizations with high achievements in business management

through providing reliable, accurate, relevant and complete information to enhance

organizational performance (Azeez and Yaakub, 2019a).

MIS assists organizations through improving employee communication, delivering

complex materials within the organization, providing an object framework for tracking

and aggregating data, minimizing costs associated with labor-intensive manual tasks,

and support the organization's strategic goals and direction (Yusuf Munirat et al.,2014).

2.2. Empirical review

This part of the literature indicates a detailed explanation of previous researches done

on MIS and organizational performance by many authors to develop hypotheses and

conceptual framework of the study. There are many studies done in MIS discussed as

follows:-

Yusuf Munirat et al., (2014); the study was conducted in Abuja, North-Central

Nigeria with the title of “The Impact of Management Information System (MIS) on the

Performance of Business Organization in Nigeria” to examine the impact of Management

Information System on corporate performance. The data collected from randomly selected

five government areas was analyzed by using non-parametric simple percentage and Z-

test statistical technique employed to test hypothesis. Further the study found that the

performance of business organization influenced by lack of management skill which

reduce both effective MIS performance and organizations market competition ability.

Khresat, (2015); the main aim of the study was examining the relationship between

management information system and organizational performance telecommunication

28
companies of Jordan. The study used the data collected from 100 employees of 10

branches of telecommunication companies. The study result shows that employees of

telecommunication companies have positive attitude on MIS and they use MIS in work

place. Finally, the study concludes that the telecommunication companies of Jordan

were fully depending on MIS and found statistically significant relationship between

MIS and organization performance.

Young-Harry et al., (2018); The study conducted to examine the relationship between

management information system and organizational performance of Seven Up bottling

company in Aba and Port Harcourt. Based on Likert scale ranges from 1 to 5

questionnaires were distributed to the sample of 117 respondents from randomly

chosen seven up company analyzed through descriptive statistics and Spearman’s rank

correlation. The study finding suggests that MIS and organizational performance has

strong positive significant relationship between seven up bottling company and

organizational performance.

Emmanuel, Mary , and Nkiru, (2019); the study aimed to examine the effect of

management information system on organizational performance of in selected deposit

money banks in south east Nigeria. Multiple linear regression analysis method was

employed to analysis the data collected from 384 employees of seven selected banks in

a study area. The result of analysis confirms that MIS has a significant effect on

organizational performance of selected banks of south east Nigeria. Even the study

recommended the selected banks of the study area to update MIS continuously and top

management should support MIS to improve organizational performance.

Azeez and Yaakub, (2019a); the study was conducted in Iraq with the title of “Effect

of MIS on organizational performance at Missan Oil Company.”

A study aimed to examine the relationship between Management Information System

(MIS) and organizational performance at Missan Oil Company. MIS indicators

proposed by DeLone and McLane, 2003 such as information quality, system quality,

service quality, user satisfaction, use of the system, and net benefit were used to

29
measure the MIS effect and the BSC model was used to measure organizational

performance in terms of financial perspectives, internal perspectives, customer’s

perspectives, and learning and growth. Likert scale questioner was distributed to 250

respondents.

The study used a quantitative research method and SEM (structural equation model) to

test the measurement and a study analyzed by AMOS 21 software. Six hypothesis

questions were developed based on the ISS model of M&D 2003 to measure the

relationship between MIS and organizational performance. The confirmatory factor

analysis (CFA) was performed to test the overall validity of the model and Convergent

validity was also tested by utilizing item loadings, average variance extracted (AVE),

and composite reliabilities (CR) of the construct. All validities tests in an acceptable

range of model validity.

Finally, the study indicated that information quality, user satisfaction, and net benefits

positively influence organizational performance while system quality, service quality,

use of system indicated a negative relationship with an organizational performance at

Missan Oil Company.

Azeez and Yaakub, (2019b); the study was conducted in Iraq with the title “The

impact of management information systems on organizational performance with total

quality management as the mediator on organizational performance at Missan Oil

Company.” the main objective of the study was investigating the relationship of MIS &

organizational performance along with mediating role of TQM at Missan Oil

Company. The study used six MIS indicators such as system quality, information

quality, service quality, intention to use (use), user satisfaction, and net benefit with

mediating of TQM and organizational performance was measured by the BSC model.

The study used a quantitative research method and SEM (structural equation model) to

test the measurement and a study analyzed by AMOS 21 software.

Finally, the study came up with a finding of independent variables such as information

quality, user satisfaction & net benefit had directly linked with the organizational

30
performance of the Oil Company meanwhile TQM mediates with all of the independent

variables except for service quality.

2.3. Conceptual Framework of the Study

According to Yusuf Munirat et al.,(2014), MIS enhances good communication among

workers, record and store information, disseminate gathered information throughout

the institution, reduce expenses incurred for manual activities and support the

organization's strategic goal by showing the direction.

It is known that the concept of MIS is important to the organization, but the only thing

we have to be aware of is how MIS affects organizational performance whether it is

positively or negatively that is the reason why most of the researchers of IS deal with it.

Urbach &,Müller, (2012) suggested that to understand the effect of MIS in an

organization it is better to use the information system success model proposed by

(DeLone and McLean, 2003).

This study attempted to study the effect of MIS on organizational performance of CBE,

Hossana branch with six dimensions provided by DeLone and McLane (2003) such as

information quality, system quality, service quality, user satisfaction, system use, and

net benefits.

The study used the Balanced Score Card (BSC) model which includes four components

that are discussed in detail in the theoretical part; those are financial perspectives (FP),

customer’s perspectives (CP), internal perspectives (IP), and Learning and growth

(L&G) , Robert, and Norton, (1992) to measure the organizational performance of

CBE, Hossana town.

The dependent variable for this study was organizational performance (FP, CP, IP

&L&G), and the independent variable was MIS (information quality, system quality,

service quality, user satisfaction, system use, and net benefits).

31
 //////////
Independent variable Dependent variable

Management information system

System quality
Service quality
(Organizational performance)
Information quality

Service quality

User satisfaction

Information
System usequality
Use satisfaction
Intension to Use

Net benefits
Net benefit

Figure2.1: conceptual frame work of the study

Source : Azeez ansd Yaakub, (2019a) & Azeez and Yaakub, (2019b)

32
 CHAPTER THREE
RESEARCH METHODOLOGY
Outline of the research methodology includes- Research approach and design, data

source and collection method, validity and reliability of the study, the target population

of the study, sampling technique and sample size, method of data analysis, model

specification, and description of study variable going to discuss.

3.1. Research design

Research design is the overall plan for combining conceptual research problems with

relevant empirical research (Tesfaye, 2018).

The purpose of this study was to examine the effect of the Management Information

System on the Organizational performance of CBE, Hossana town. This study used

both descriptive and explanatory research design to examine the effects of MIS and

describe what effect does MIS on the organizational performance of CBE, Hossana

town.

The explanatory research design offers a modern framework that goes beyond the

traditional descriptive and explorative case study approaches, allowing cases to be used

more systematically in research to fail to reject or reject hypotheses and construct

theoretical models (Fisher and Ziviani, 2004). Explanatory research design helps to

examine the cause and effect relationship between dependent and independent

variables. In this study, an explanatory research design was used to test six developed

hypotheses whether it fails to be rejected or rejected, and a kind of relationship among

independent and dependent variables. Descriptive studies can be purely descriptive,

or they can be descriptive comparative to describe and compare naturally occurring

groups, such as gender, education, or age groups. Further, it focuses on describing

people, events, or things in their natural setting to which the researcher does not change

any of the variables; instead, he or she simply describes the sample and/or variables,

(Siedlecki, 2020).

33
The quantitative approach focuses on gathering new data from a broad population

under the issue and analyzing the data which focuses on the goal and measures it

through actions and opinions, which aids the researcher in describing the results, (Rahi,

2017). In this regard, the study used questioner as the tool to collect data from

respondents.

3.2. Data source and collection tool

3.2.1. Data source

The study used primary sources. The primary source was obtained from employees of

the commercial bank of Ethiopia of Hossana town.

3.2.2.Data collection tool

This study used questioner to collect the data to achieve the desired objective of the

study. A five-point Likert scale questioner was used and distributed to respondents

(employees) of the commercial bank of Ethiopia, Hossana town. A five-point Likert

scale questioner was used for the accomplishment of this study because it is important

in reducing confusion during questioner filling and it is easy for a researcher to analyze

the research once the questioner is returned, (Rahi, 2017).The scale ranges from

strongly disagree to strongly agree. 1, stands for strongly disagree, 2, stands for

disagree, 3, stands for neutral, 4, stands for agree, and 5 stands for strongly agree. The

questioner used in this study has three parts. Part one questioner about respondents’

demographic information, part two questioners about MIS dimensions and the last part

are about a questioner on organizational performance.

The study adopted 24 Questionnaires of MIS indicators from, Azeez and Yaakub,

(2019a) & Azeez and Yaakub, (2019b) and 12 questionnaires of organizational

performance adopted from, Mafini and Pooe, (2013) ,and (Blackmon, 2008).

At the end questioner was distributed to each 10 CBE. Hossana town based on their

sample frame identified.

34
3.3. validity and Reliability of the instrument
3.3.1. Validity of the instrument

Validity is concerned with whether the researcher is studying the phenomena he claims

to be researching or not. Validity is compromised if the researcher's research strategy is

unintentionally more or less than the reported phenomena (McKinnon, 1988).

Accordingly, the research instruments used in this study were based on the review of

related literature and then reviewed by advisors; senior colleagues, and peers to its

validity.

This study adopted instruments from (Azeez and Yaakub, 2019a; Azeez and Yaakub,

2019b; Mafini and Pooe, 2013; and Blackmon, 2008) to measure MIS indicators and

organization performance based on the literature evidence

3.3.2 Reliability of the instrument

According to Wei, (2018), Reliability reveals how bias-free it is, and so ensures

consistent measurement across time and the various elements in the instruments. This

study used the Cronbach alpha method to measure the reliability (internal consistency)

of the data collection instruments. And as noted by, Spiliotopoulou, (2009) the

researchers (Bland & Altman,1997) claimed that the outcome measure's internal

consistency was acceptable to meet the standard of 0.70, which is normally used to

assess acceptable reliability. Accordingly, the Cronbach alpha value for all variables

used in this study was above o.7 as indicated in table 3.3, which shows the acceptable

value according to most of the works of literature.

35
 Table 3. 1: Reliability Statistics

Construct Variables Cronbach Number

Alpha of items

MIS System quality .819 4

indicators(independent Information quality .746 4

variables) Service quality .764 4

Intension to use .801 4

User satisfaction .776 4

Net benefit .756 4

Dependent variable Financial perspectives .780 3

(Organization Customers perspectives .88 3

performance) Internal process .75 3

perspectives

Employee learning and .80 3

growth

Source: survey questioner, 2021

3.4. Population of the study

The target population of the study was employees of the commercial bank of Ethiopia,

Hossana town. Currently, 10 CBE branches are operating in Hossana town which has

255 employees.

36
 Table 3.2 : Study population and branch Grade of banks

No Branch name Number of Percentages of Branch Grade

employees employees

1 Hossana 47 18.43% 4

2 Wachamo 43 17% 3

3 Bobecho 38 15% 3

4 Batena 32 12.55% 3

5 Seche Duna 28 11% 2

6 Selme 18 7% 2

7 GofarMeda 13 5% 1

8 Negest Eleni 11 4% 1

9 Ambecho Godea 14 5.5% 1

10 Aekmura 11 4% 1

Total 255 100 -

Source: CBE, Hossana town, 2021

3.5. Sample design

Sample design refers to the methods that are used in selecting a sample from the

population and imply techniques and formulas to draw a sample from the total

population of the study area (Trotter, 2012).

3.5.1. Sampling technique

All 10 CBE branches operating at Hossana town were selected to make the data more

accurate and to give equal chances for all CBE branches at Hossana town.

The study was used a systematic sampling technique to which assures that each unit

has an equal chance of being included in the sample to which the first unit is chosen

using random numbers that are chosen automatically according to a specified pattern

(Shalabh, 2006) . To give equal chances for all employees of the bank branches of the

study area and because of the homogeneity nature among CBE branches, a systematic
37
sampling method was used. From 10 branches of CBE, Hossana town the study used

the sample from each branch based sample proportion by taking every Kth element from

each branch.

K= N/n
3.5.2. Sample size

The total population of the study was 255, which includes all employees from 10 bank

branches.

Sample size determination for this study was done by using Yamane (1967) formula to

distribute the population. n= N

1+N (e)2

This formula was used to calculate the sample sizes in this study in the assumption that

a 95% confidence level, and e = 5%. Where n is the sample size, N is the population

size, and e is the level of precision (or the acceptable sampling error). Based on this

simplified formula, the sample size “n” is determined as follows: Population size (N) =

255, Sampling error (e) = 5% = 0.05, hence the sample size n is determined as:

n= N = 255 = 255 = 156

1+N (e)2 1+255(0.05)2 1.6375

The sample proportion for each branch of the CBE, Hossana town identified based on

the following formula:-

ni = n*Ni

Where

ni : stands for a sample size of each bank branches.

38
n: stands for the overall sample size obtained by the Yamane formula.

Ni: stands for the total population of each branch bank.

Based on the above formula, the following sample size proportion was derived: -

Table3.3: Sample frame of the study

No Branch name Number of Proportion of

sample Size
employees

1 Hossana 47 29

2 Wachamo 43 26

3 Bobecho 38 23

4 Batena 32 20

5 Seche Duna 28 17

6 Selmea 18 10

7 GofarMeda 13 8

8 Ngest Eleni 11 7

9 Ambecho Godea 14 9

10 Aekmura 11 7

Total 255 156

Source: - CBE, Hossana town, 2021

3.6. Method of data analysis

The study was conducted by using both descriptive and inferential statistics.

Descriptive statistics used to describe demographic information and responses of

respondents through frequency, means, and standard deviation. Inferential statistics

usually a means of survey research where a sample of a population is studied to

determine its characteristics, and it is then inferred that the population has the same

characteristics (Chauhan, p . 15, 2012). In this study, it was used to inference the effects

of MIS indicators on organizational performance through the support of Pearson

correlation, linear regression model, and the data were analyzed by statistical package

for social science (SPSS v.23).

39
Linear regression analysis was used to test the statistical significance of the relationship

that exists between the independent and dependent variables.

Kraemer and Blasey, (2017) state the importance of linear regression analysis as it is

used to determining the strength of the relationship between the dependent variable and

independent variables. Also, it used to determine how a one-unit change in the

independent variable affects the dependent variable. In this study linear regression

analysis was used to determine the amount of percent that dependent variable

(organizational performance) is explained by independent variable and to identify the

relationship between organizational performance and MIS indicators was significant or

not.

Pearson Correlation was used to measure the association between the MIS indicators

and organizational performance through testing whether the relationship was positive

or negative or strong, moderate or weak.

3.7. Model specification

Linear regression analysis is a general system for examining the relationship of a

collection of independent variables to a single dependent, (Aiken et al., 2012). It

enables to explain the dependent variable by a linear combination of more than two

explanatory or independent variables, (Park et al., 2018). So, it is better to work with

multiple linear regression analysis to determine the degree of the prediction and control

to examine the relevant factors and relational expression can be used to predict and

control another dependent variable by the operation of one or more variables, (Wei,

2018).

The study used multiple linear regression analysis to examine the effect of MIS

(Information quality, service quality, system use, system quality, user satisfaction, and

net benefits) on organizational performance of CBE, Hossana Town.

40
 Y = ꞵ0 + ꞵ1X1 + ꞵ2X2 + ꞵ3X3 + ꞵnXn …...+ ↋i for i = 1, 2 ... n.

Where;

Y: is dependent variable (Organizational performance),

ꞵ0: is constant

ꞵn: is the coefficient of independent variables,

Xn: is independent variable (information quality, system quality, service quality,

system use, user satisfaction, and net benefit).

↋i: is an error term.

↋i can be described as;

↋i = Y-ꞵ0 + ꞵ1X1 + ꞵ2X2 + ꞵ3X3 +……. + ꞵnXn

3.8. Description of study variables

Dependent variable

The dependent variable of the study is organizational performance.

Organizational performance is overall performance measured based on performance

resources, output performance, and flexibility performance (Al-taai, 2021) .

BSC model measures organizational performance based on four perspectives such as -

Financial perspective, Customer perspective, Internal-business-processes perspective,

Internal-business-processes perspective, and Learning and growth perspective.

According to, (Blackmon, 2008 ; Mafini and Pooe, 2013) :-

Financial perspective—measured based on effective cost control, efficient resource

utilization, and good financial performance.

Customer perspective— encompasses such measures as customers’ expectations,

customers’ satisfaction and, loyalty.

Internal-business-processes perspective—it is measured by working culture, service

delivery process, and flow of communication.

41
Learning and growth perspective— it is measured by employees’ sense of task

accomplishment, optimal decisions made by employees, and teamwork among

employees resulting from MIS.

Independent variable

The Independent variable used in this study was the management information system

(MIS).

The independent variable is measured by MIS indicators proposed by (DeLone and

McLean, 2003) such as - information quality, service quality, system quality, and user

satisfaction, use of the system, and net benefits. According to (Azeez and Yaakub,

2019a; Azeez and Yaakub, 2019b):-

System quality is assessed in terms of ease to use, functionality, availability, and

security of the organization MIS.

Service quality is measured by the system response time, service to use, influence of

service on the entire system, and technical support of specialists.

User satisfaction: - It is measured by employees' productivity, system efficiency,

system flexibility, accuracy, and system objectivity.

Information quality: - is measured with dimensions of information understandability

and usefulness, timely use, updated and accuracy of information from the organization

system.

Intention to use (use):- determined by the frequency of use, interest to continue with

the system, resources support MIS, and increment in the number of users.

Net benefit: - is measured based on the time needed to accomplish tasks by employees,

employees’ job performance, and effectiveness and organization productivity.

42
 3.9. Ethical consideration
Many ethical considerations must be taken into account when conducting research.

From those many ethical considerations, the first and the most is the data collection for

this study was done by permission given by the college of business and economics

research committee. All participants in this study were appropriately informed about

the purpose of the research and the data was collected based on their willingness and

permission without any enforcement and hidden information. In addition to this, the

collected data were analyzed based on its collection result rather than personalizing the

result for achieving the subjective goal of the researcher. Finally, reviewed articles,

journals, magazines, books, thesis, and other published and unpublished documents

were cited as per request of scientific study, and plagiarism issue for this study was

checked before submission of the document.

43
 CHAPTER FOUR
DATA ANALYSIS AND DICUSSION OF THE
RESULTS
4.1. Introduction
This chapter deals with the description of the analysis, and interpretation of the data

based on the information obtained from the questionnaires and documents. Most

relevant data for the study were obtained through questionnaires distributed to

employees of the commercial bank of Ethiopia Hossana.

The researcher distributed a total of 156 questionnaires and out of which 136

questionnaires were returned with a return rate of 87%. Because of various reasons, the

rest 20 questionnaires (19%) were not returned. The data presentation and analysis

were based on responses obtained from the employees of CBE, Hossana town through

questionnaires. After the presentation of the demographic characteristics of the

respondents, the study deals with the presentation, analysis, and interpretation of data

collected from the questionnaires.

Collected data through questionnaires were analyzed with the Statistical Package for

Social Science (SPSS v.23). The responses of employees on all given variables other

than the demographic variables were measured based on the five-point Likert scale

with 1= Strongly Disagree, 2 = Disagree, 3 = Neutral, 4= Agree, and 5= Strongly

Agree. The demographic variables such as gender, age, the field of specialization,

educational background, organizational position, and years of experience were

measured based on the following techniques using SPSS software. In the case of

gender, values were provided as Male=1 and Female =2. For the age groups, values

were provided as age ranges <30 =1, age ranges (31-36) =2, age ranges (37-42) =3, age

ranges (43-48) =4 and age ranges >48 =5. For field of specialization, values were

provided as Accounting & Finance =1, Banking & Finance =2, Management =3, =

Business Administration 4, Marketing management = 5, Economics= 6 and other than

44
these fields =7. For Educational Background, values were provided as Diploma =1,

First university Degree =2, Masters Degree =3, and Doctorate Degree =4. For

organizational positions values were provided manager =1, officer =2, Auditor =3,

other = 4 other than these organizational positions.

For experience in organizations values were provided as years of experience ranges

from <3yrs = 1, 3-6yrs = 2, 6-9yrs = 3, 9-12yrs = 4, and above 12 yrs = 5.

4.2. Demographic characteristics of respondents

The demographic information discussed in this part is about employees of commercial

bank of Ethiopia Hossana town in terms of sex, age, the field of specialization,

educational background, positions in the organization, and yrs of experience in a

current organization.

4.2.1. Demographic variables analysis

4.2.1.1. Gender of respondents

Figure4.1: Gender of Respondents

Source: survey questioner, 2021

According to Figure 4.1, from total respondents, 67.6% of the respondents were males

while 32.4% were females. This indicates that the commercial bank of Ethiopia,

Hossana town, was dominated by males’ employees.

45
 4.2.1.2. Respondents Age group

Figure 2.2: Respondents age group

Source: survey questioner, 2021

As depicted from figure 4.2, the respondents 34.6% were in the age of Below 30, 58.8%

in the age of 31-36 and 6.6% in the age of 37- 42. This shows that majority of

respondents (employees) in CBE were aged between 31-36 years old followed by

below 30 years old. This shows that most of the employees were at the age which

highly motivated to work and adapting management information system with more

interaction to computers system.

46
4.2.1.3. Respondents field of Specialization

Figure 4.3: Respondents field of specialization

Source: Survey questioner, 2021

For the variable field of specialization as it is seen from figure 4.3, most of the

employees of CBE, Hossana town were specialized with management 32.35% followed

by Accounting holders 19.85%, Economics 14.71%, Business administration 13.97%,

Banking & financing 5.88% and 2.94% of respondents replied on other option. This

implies that the majority of employees of CBE, Hossana town were specialized in

business-related fields.

47
4.2.1.4. Educational Background of Respondents

Figure 4.4: Respondents Educational Background

Source: survey questioner, 2021

As it is seen from figure 4.4 the educational background for the employees in CBE

(Hossana town) shows that 69.12% and 30.88% of the respondents were holding

academic qualifications of First University Degree and Masters Degree with different

business-related fields of specialization respectively. This enhances the commercial

bank of Ethiopia, Hossana town to reduce any system confusion because of

knowledge incompatibility.

48
4.2.1.5. Respondents organizational position

Figure 4.5: Respondents organizational position

Source: survey questioner, 2021

As depicted from figure 4.5 respondents' organizational position show that 72.79 %,

14.71%, & 5.88% of CBE, Hossana town employees were possessed officer, manager

& auditor position in an organization. However, 6.62% were replied in “other” option

that may they possess the position that not specified in this study demographic profile.

49
4.2.1.6 Respondents years of experience in the organization

Figure 4.6: Respondents years of experience in the organization

Source: survey questioner, 2021

As indicated in figure 4.6 respondents years of experience in an organization show that

31.62 %, 50%, 13.24%, 2.94% & 2.21 % employees of CBE, Hossana town were an

experience of below 3yr, 3-6yr, 6-9yr, 9-12yr and above 12 yr respectively stayed in the

bank industry. This indicates that the half of employees of CBE Hossana town were

with the experience ranges from 3-6 years, which is one of an important asset to the

bank because more experienced employees’ plays a great role in organizational

performance.

4.3. The current Organizational performance of CBE

Organizational performance is a concept that measures the overall organization in

terms of financial, customer perspectives, employee learning perspectives, and internal

business process Perspectives as was discussed in the literature part of the study. Based

on these there were 12 questioners were distributed to respondents based on the

five-point Likert scale model with 1=Strongly Disagree, 2=Disagree, 3=Neutral,

4=Agree, and 5=Strongly Agree.

50
Organizational performance analyzed and presented via Mean and Std. Deviation.

4.3.1. The current financial performance of commercial bank of Ethiopia

Table 4.1 : Mean and Std. Deviation table for financial perspectives

N Mean Std. Deviation

MIS help us to be more effective at cost control 136 4.14 .936

Utilization of MIS make financial performance of the

136 4.27 .821
organization is good

Resources are managed efficiently well with help of MIS 136 4.30 .792

Source: - survey questioner, 2021

a. MIS help us to be more effective at cost control

Concerning the importance of MIS at cost controlling in CBE, table 4.1 shows that the

values of mean, and standard deviation 4.14 &0.936 respectively. The Mean value

(4.14) falls in between Agree (4) and Strongly Agree (5) which is approximate to the

value of 5(agree). This indicates that most of the respondents for this question replied

agree on an option with less than 1 std. deviation. This implies that currently, MIS

helps CBE, to be effective at cost control. This result of the study was in line with,

Ahmad, Hanini, and Oqaily, (2018) to which founds that MIS has significant effect in

reducing service cost provided by bank.

b. Utilization of MIS make financial performance of the organization is good

Utilizing MIS makes the financial performance of the commercial bank of Ethiopia

good indicated by 4.27, and 0.821mean and Std. Deviation respectively. The mean

value (4.27) falls between 4 (agree) and 5(strongly agree) that approximate to the value

of 4 (agree). So, the mean value indicates that the majority of respondents' replies agree

to this question as it is seen from table 4.1 with 0.821 deviations. From this, it can be

sure that the utilization of MIS brings Commercial bank of Ethiopia makes its financial

performance well.

51
 c. Resources are managed efficiently well with help of MIS

The existence of MIS enables CBE to manage resources efficiently indicated with 4.30,

and 0.792 mean and Std. Deviation respectively. The mean value of 4.30 falls between

4 (agree) and 5 (strongly agree) which approximate to the mean value of 4 because it is

far from 5 by 70%. Further, this mean value confirms that the majority of respondents

were replied to agree with option for this question with 0.792 deviations from the mean.

This indicates that most of the respondents replied agree (4) that confirm resources are

managed well with the existing MIS in the commercial bank of Ethiopia.

Generally, with regards to financial perspectives the Management information system

helps the commercial bank of Ethiopia, with effective cost control, good financial

performance, and efficient resource management is seen from the data analyzed in

descriptive statistics with a mean value of 4.14, 4.27 &4.30 with no more than one (1)

std. deviation. This indicates that the overall financial performance of the commercial

bank of Ethiopia is significantly relying on the existing management information

system.

4.3.2. The current customers’ perspectives of commercial bank of Ethiopia

Table 4.2 :Mean and Std. Deviation table for customers perspectives

N Mean Std. Deviation

MIS enable the organization consistently to

136 4.26 .750
meet the expectations of clients

Most clients are satisfied in my organization

136 3.67 1.199
due to MIS

Most clients are loyal to the organization from

136 4.04 1.046
the service that system provide them

Source: survey questioner, 2021

a. MIS enables the organization consistently to meet the expectations of clients

Regarding the effects of MIS in meeting the expectation of customers, 136 employees

of CBE Hossana town were replayed. Descriptive statistics value in table 4.2, shows
52
that a mean value of 4.26 & Std. Deviation of 0.750. A Mean value (4.26) falls in

between agree (4) and strongly Agree (5), but it is near to agree on value which implies

that most of the respondents replied agree with less than 1 Std. Deviation from the mean

value. Hence, the existing MIS in the commercial bank of Ethiopia enables the

organization to meet its customer expectation.

b. Most clients are satisfied in my organization due to MIS

Satisfying customers is a primary goal for any type of organization whether it is a

private or governmental organization. And satisfying customers began with identifying

the expectation of customers in regard to the services or products to deliver to them.

Employees of CBE of Hossana town were asked to rank from 1-5 (strongly disagree –

strongly agree) in regard to how MIS makes the organization satisfy its customers.

According to table 4.2, descriptive data implies 3.67, and 1.199 mean, and Std.

Deviation respectively. The mean value is approximately 4 (agree) than neutral .On

average most of the respondents replied that they agreed which confirms that because

of MIS customers of CBE were satisfied significantly.

c. Most clients are loyal to the organization from the service that MIS provide

them

Keeping customers being loyal is the primary success for performing the overall goal of

the organization. This would be achieved when the expectations of customers meet

with the organization's delivery quality prior to competitors. Respondents asked to

answer this question, accordingly, descriptive data table 4.2 depicted shows 4.04, and

1.046 values of mean, and Std. Deviation respectively. The mean value of 4.04 implies

that most of the respondents replied agree to this question, which proves customers of

CBE are loyal as a result of providing service from carefully implemented MIS with

1.046 Std. Deviation from the mean value.

In frankly speaking the organization's performance is the direct replica of what invested

in customer’s relationship. Due to existing MIS, the commercial bank of Ethiopia

consistently meets the expectations of customers consistently, satisfy customers and

53
make them loyal which significant with a mean value of 4.26, 3.67, and 4.04

respectively.

4.3.3.The current Internal process perspectives of commercial bank of Ethiopia

Table 4.3 :Mean and Std. Deviation table for internal process perspectives

N Mean Std. Deviation

MIS improve working culture of the

136 4.01 1.106
organization

MIS improve our service delivery Processes 136 4.19 .882

MIS disseminate Communication flows

136 4.65 .477
easily throughout the organization

Source: survey questioner, 2021

a. MIS improve working culture of the organization

With regard to MIS in improving the working culture of the organization CBE, as it is

seen from table 4.3 most of the respondents were replied agree with the mean value

(4.01). Further, value 1.106 shows the amount of deviation from the mean value. This

implies the current working culture of CBE is improved because of the existing MIS.

b. MIS improve our service delivery Processes

As it is observed from table 4.3, most of the respondents replied agree in regard to MIS

improve the service delivery process of the organization with values of 4.19 &0.882

respectively mean and std. Deviation. The mean value (4.19) is near to 4(agree), which

implies that most of the respondents for this question replied agree with less than 1 std.

Deviation from the mean. So this confirms that MIS improves the service delivery

process of the commercial bank of Ethiopia as is seen from descriptive output table 4.3.

c. MIS disseminate Communication flows easily throughout the organization

Table 4.3 depicted the analysis for MIS disseminates Communication flows easily

throughout the organization in the commercial bank of Ethiopia. More computed

descriptive statistics result provides 4.65 & 0.477 mean and std. deviation respectively.

54
 From these given figures we realize that the Mean value (4.65) exists between 4(Agree)

and 5(strongly agree), but it is approximate 5(strongly agree). Further, values of std.

deviation 0.477 shows that the majority of respondents replied to these questions close

to the mean value. It is easy to say MIS disseminates communication flows easily

through the organization in CBE significantly.

According to the analyzed data as it is seen in the table above reasonable MIS improves

internal working culture, service delivery process, and flow of communication with a

mean value of 4.01,4.19 & 4.65 with not more than one deviation from the mean except

for working culture in commercial bank of Ethiopia.

4.3.4.The current Employee learning and growth of commercial bank of Ethiopia

Table 4.4: Mean and Std. Deviation table for Employee learning & growth

N Mean Std. Deviation

MIS make me develop a sense of my task

136 4.41 .509
accomplishment

MIS allow me to make optimal decisions to

136 4.35 .625
accomplish my performance objectives

MIS enhances good teamwork in the organization 136 2.23 .825

Source: survey questioner, 2021

a. MIS make me develop a sense of my task accomplishment

Regarding a sense of task accomplishment through MIS currently in the commercial

bank of Ethiopia, most of the respondents were replied to agree with the mean value of

4.41. The Mean value (4.41) exists between 4(Agree) and 5(strongly agree), but it is

approximate to 4(agree). Further, value of std. deviation 0.509 shows that majority of

respondents were replied very close to the average mean value. From these descriptive

statistics one decides that in current CBE, MIS insists employees to develop a sense of

task accomplishment in day to day activities of their operation.

55
 b. MIS allow me to make optimal decisions to accomplish my performance

objectives

MIS allow employees to make an optimal decision against organizational objectives,

the descriptive table above shows values of 4.35 & 0.625 mean and std. Deviation

respectively. Further, the mean value (4.35) is approximate to agree (4) than strongly

agree (5) with less than 1deviation from the mean value. It suggests that MIS enables

employees of the commercial bank of Ethiopia to make an optimal decision to an

objective performance designed by the organization.

c. MIS enhances good teamwork in the organization

The descriptive table above shows that MIS enhancing teamwork among employees of

the organization with values of 2.23 & 0.825 mean and std. Deviation respectively. The

mean value for this question is falls between 2(disagree) and 3 (neutral), but it is a

further approach to 2(disagree) by 23% and far from 3(neutral) by 77%. With regard to

enhancing teamwork in an organization, MIS is not accepted by a majority of

respondents to this question with <1 deviation from the mean. This confirms there is no

significant teamwork exists in CBE, with the implemented MIS.

Generally, in regard to employee learning and growth, employees are developing a

sense of task accomplishment and they make the optimal decisions in the current CBE,

Hossana town significantly at the mean value of 4.41 and 4.35. However, in regard to

enhancing teamwork MIS is insignificant in the commercial bank of Ethiopia with a

mean value of 2.23. So, currently in CBE, employees are accomplishing their tasks with

higher initiation and good ability of decision-making tendency on their objective

performance due to MIS, but there is no teamwork approach arising from MIS.

4.4.Management information system in current CBE

The independent variable for this study is MIS, which is indicated by six independent

variables as; system quality, information quality, service quality, intention to use (using

system), user satisfaction, and net benefits. Table 4.5 up to 4.10 demonstrates the

descriptive statistics such as mean and std. Deviation for the independent variables

56
 based on the five-point Likert scale model with 1=Strongly Disagree, 2=Disagree,

3=Neutral, 4=Agree, and 5= strongly agree indicated below.

4.4.1. system quality

Table 4.5 : Mean and Std. Deviation table for system quality

N Mean Std. Deviation

MIS in my organization is easy to use 136 3.96 .914

The function of MIS in organization meet my requirements 136 3.83 1.152

MIS in my organization always available 136 3.32 .926

MIS in my organization is secure 136 4.25 .805

Source: survey questioner, 2021

a. MIS in my organization is easy to use

As represented in the above table 4.5, respondents replied between neutral and agree

with 3.96 & 0.914 respectively Mean and Std. Deviation. The mean value (3.96) falls

between 3(neutral) and 4 (agree). Further, the mean value is approximated to 4 by with

less than 1deviation from the mean value. Generally, the mean value confirms that the

majority of respondents agree on MIS that is easy to use significantly.

b. The function of MIS in organization meet my requirements

Regarding MIS in meeting employee’s requirement in commercial bank of Ethiopia,

most of the respondents were replied between neutral with 3.83 &1.152 respectively

mean and Std. Deviation. The mean value is approximate 4 (agree) with a 1.152

standard deviation from the mean value. So, the mean value of 3.83 confirms that a

majority of respondents (employees of CBE) replied agree. This confirms that the

existing MIS function in the commercial bank of Ethiopia enables employees to meet

day to day operation of the bank significantly.

c. MIS in my organization always available

Most of the respondents replied between neutral and agree with MIS always available

in CBE with a mean value of 3.32. The mean value for this question falls between

57
3(neutral) and 4(Agree), but it is approximate to the value of 3 (neutral). Accordingly,

the majority of respondents not agree in that MIS is always available in CBE.

d. MIS in my organization is secure

The security issue is a sensitive one for any organizational type regardless of their

business objective than any time to which many cyber-attack cost governments,

organizations, and individuals. The bank is one of the financial organizations that

require considerable priority to make the system complex to illegal access by

modifying itself per time world technology change.

As displayed in table 4.5, the mean value (4.25) falls between 4(agree) and 5(strongly

agree) with 0.805deviations from the mean. Further, the mean value is approximate

4(agree) which confirms MIS in CBE is secure with the deviation of 0.805 indicates the

responses did not vary from the mean value. Generally regards system quality the

majority of respondents agree that the MIS in the commercial bank of Ethiopia is easy

for them, functional in meeting their requirements, and secure with a mean value of

3.96, 3.83, and 4.25 respectively. However, MIS in CBE is not always available as

needed which indicated by mean value of 3.32. Hence, currently, MIS in CBE is easy to

use, functional, and secure however it is not available whenever it is needed as it is

supported by descriptive statistics.

4.4.2. Information quality

Table 4.6: Mean and Std. Deviation table for information quality

Std.

N Mean Deviation

MIS provides me information in a useful and understandable

136 4.40 .491
format

MIS in my organization provides information timely to use 136 4.60 .506

MIS provides me up to dated information 136 4.43 .747

MIS in my organization provides system users with accurate

136 4.53 .530
information
58
 Source: - survey questioner, 2021

a. MIS provides me information in a useful and understandable format

As indicated in Table 4.6 above, the descriptive statistics for this question provide 4.40

&0.491mean and Std. Deviation respectively. Further, the mean value is approximate

4(agree). More the mean value confirms that a majority of respondents replied agree to

this question implies information provided by MIS in a commercial bank of Ethiopia, is

useful and understandable. Further, the value of Std. Deviation (0.491) shows a

majority of respondents replied very close to the mean value.

b. MIS in my organization provides information timely to use

The function of a system is to provide the required information as much as possible

needed for decision-making purposes as fast in a timely manner. Table 4.6 shows

descriptive values of 4.60 & 0.506 mean and Std. Deviation respectively. The mean

value (4.60) falls between 4 (Agree) and 5 (Strongly agree). And this value is

approximately 5(strongly agree) and it conveys that majority of respondents

(employees of CBE) were replied that strongly agree to this question with close to mean

value of 0.506 std. Deviation. Hence, MIS currently in CBE provides information when

needed in a time for a performing expected service delivery is significant.

c. MIS provides me up-to-dated information

Based on the data depicted in table 4.6, the descriptive output shows 4.43 & 0.747 mean

and standard deviation presented respectively. The mean value for this question falls

between 4 (agree) and 5 (strongly agree) but, it is approximate to4 (agree). So, this

implies that the majority of respondents replied to agree with less than 1 deviation from

the mean. Generally, one to be sure is that MIS provides up-to-date information

currently in the commercial bank of Ethiopia for its workers as per their request for

day-to-day operation.

d. MIS in my organization provides system users with accurate information

The information must be accurate enough for the purpose for which it will be used.

Unless the information is accurate it is too difficult for those who under-take in using

59
such a system. Respondents asked to respond whether MIS provide them accurate

information during their working time by ranking with 5 point Likert scales ranging

from strongly disagree to strongly agree with a mean value of 4.53 and Std. Deviation

of 0.530 as it is seen from the above table 4.6. More the mean value (4.53) approximate

to 5 (strongly agree). Hence, the majority of respondents replied strongly agree which

indicates currently MIS provides accurate information for employees of CBE with very

close deviation from the mean.

With regard to information quality, the majority of respondents of CBE agreed in MIS

provide information in a useful and understandable manner, timely to use, updated, and

accurate information with the mean value of 4.40, 4.60, 4.43 &4.53 respectively.

Hence, the current MIS in CBE provides information in a useful and understandable

manner, timely to use, updated and accurate information for its users is significant in

CBE with a mean value greater than 4.

4.4. 3. Service quality

Table 4.7 : Mean and Std. Deviation table for service quality

Std.

N Mean Deviation

The response time of MIS in my organization is good 136 4.11 .924

MIS in my organization provides well-mannered services for

136 4.04 .965
use

The service quality of MIS in my organization affects the

136 4.38 .826
extent to which the system can be used

My organization has MIS specialists to address technical

136 2.40 1.157
problems and emergencies if any

Source: - survey questioner, 2021

a. The response time of MIS in my organization is good

For service-providing organizations, it is advisable for a system to respond with

minimum time as much as needed. Descriptive statistics value in the above table shows
60
a 4.11 & 0.924 mean and deviation respectively. More the mean value is approximate

to 5(strongly). So, this indicates that the majority of respondents replied that agree for

which the response time of MIS in the commercial bank of Ethiopia is good with less

than 1 deviation from the mean.

b. MIS in my organization provides well-mannered services for users

As it is seen from table 4.7 the value of the descriptive statistics portrayed that the value

4.04 and 0.965 mean and Std. Deviation respectively. More the mean value is

approximated to 4, which stands for the value of agreeing to option and it represents

that the majority of respondents agree in MIS provides well-mannered service to

system users with less than 1 deviation from the mean.

c. The service quality of MIS in my organization affects the extent to which

the system can be used

Regarding service quality, MIS affecting the entire system of the organization a

descriptive statistics value shows values of 4.38 & 0.826 mean and std. Deviation

respectively. Further, the mean value is approximate 4. Accordingly, for this question

majority of respondents replied agree by accepting the existing service quality of MIS

affects the entire system of the organization with 0.826 deviations from the mean.

d. My organization has MIS specialists to address technical problems and

emergencies if any

Regarding existing MIS, specialists to address a technical problem in the system in

CBE table 4.7 above depicted that the mean value of 2.40 and std. Deviation of 1.157.

The mean value states that the majority of respondents who replied to this question

disagree, which confirms there is the problem of technical assistants in the time when

the system breaks in the commercial bank of Ethiopia, Hossana town.

Generally, service quality With regard to good response time, providing service to

use, and service quality has an effect on the entire organization system the majority of

employees replied agree with a mean value of 4.11, 4.04 & 4.38 respectively. This in

line with the finding of , Ahmad, Hanini, and Oqaily, (2018) who found MIS improve

61
service quality of bank. However, the majority of respondents replied disagree in

that the bank has MIS technical specialists to fix any technical problems with a mean

value of 2.40. Hence, MIS in current CBE, Hossana town has good response time,

provide service to use and the service quality has an effect on entire organizational

system significantly but the survey questioner statistics output conveys there is the

inadequacy of technical specialists in MIS who fix when there is the system down.

4.4.4. Intension to use

Table 4.8: Mean and Std. Deviation table for intention to use

Std.

N Mean Deviation

I often use the MIS applied in my organization 136 4.56 .541

I am very interested in the process of continuing to use

136 4.23 .471
the MIS in my organization have helped its success

The human and material resources supporting the MIS in

136 3.26 1.361
my organization have helped its success

The number of participants in the use of MIS in my

organization has been constantly increased since its 136 4.37 .486

beginning

Source: - survey questioner, 2021

a. I often use the MIS applied in my organization

As observed in table 4.8, the descriptive output 4.56 & 0.541 mean and std. Deviation.

The mean value is approximate 5(strongly agree) which shows the majority of

respondents replied strongly agree to this question with less than 0.5 deviation from the

mean. It is easy to conclude that employees of the commercial bank of Ethiopia are

often using MIS for their day-to-day operation.

62
 b. I am very interested in the process of continuing to use the MIS in my

organization have helped its success

According to table 4.8, respondents were asked to rank their interest in continuing using

MIS in the commercial bank of Ethiopia. Statistical descriptive output data shows the

mean, and standard deviation for this question 4.23 & 0.471 respectively. The mean

value is approximate 4(agree) that implies the majority of respondents replied agree to

this question. Further, standard deviation (0.471) for this question is less than 0.5,

which indicates most of the respondents replied close to the mean value (4.23).

Accordingly, all of the respondents were agreed and accepted that they are interested in

using MIS in the commercial bank of Ethiopia. Therefore, employees of CBE are

interested in using MIS significantly.

c. The human and material resources supporting the MIS in my organization

have helped its success

As depicted in table 4.8, mean and std. Deviation 3.26 & 1.361 respectively. The mean

value is approximate 3 (neutral) which indicates most of the respondents replied neutral

more than 1 deviation from the mean. This shows that there is shortage of the human

and material resources availability in the commercial bank of Ethiopia to support MIS.

d. The number of participants in the use of MIS in my organization has been

constantly increased since its beginning.

Regarding the number of users increase to MIS in CBE as seen in table 4.8, with 4.37 &

0.486 mean and Std. Deviation presented respectively. The mean value of 4.37

indicates that the majority of respondents replied to agree. Further, the standard

deviation value of 0.486 represents the majority of respondents who replied close to the

mean value, which portrays that the number of system users for MIS in CBE is

increasing since before significantly.

Hence, regarding the intention to use the majority of employees replied agree that they

always using MIS, they have the interest to continue with MIS, and MIS users increase

from time to time with a mean value of 4.56, 4.23 & 4.37 respectively with less than 0.5

63
deviations from the respective mean values. However, the majority of respondents

replied neutral in that the bank has MIS has material and human resources to support

MIS a mean value of 3.26. Hence, in current CBE, employees use MIS always to

perform the given task, they are interested to continue using MIS, and the number of

users increases from time to time. But the survey questioner statistics output conveys

there is the shortage of the human and material resource to support MIS in current CBE.

4.4.5. User satisfaction

Table 4.9: Mean and Std. Deviation table for user satisfaction

Std.

N Mean Deviation

Using MIS in my organization helps me to

136 4.38 .488
improve productivity

The MIS in my organization is very efficient 136 3.70 1.013

The MIS in my organization is flexible enough 136 3.68 .885

I am satisfied with the accuracy and objectivity of

136 3.93 .772
my organization MIS

Source: - survey questioner, 2021

a. Using MIS in my organization helps me to improve productivity

Regarding MIS improving the productivity of employees, a descriptive output value

presented shows that mean and std. Deviation 4.38 & 0.488 respectively. The mean

value confirms that the majority of respondents replied agree and the standard deviation

value confirms most of the respondents replied close to the mean value with less than

0.5. Hence, the currently existing MIS in the commercial bank of Ethiopia helps

employees to improve working productivity significantly.

b. The MIS in my organization is very efficient

In terms of efficiency MIS in the commercial bank of Ethiopia, the descriptive table 4.9

implies 3.70 & 1.013 mean and std. Deviation respectively. The mean value (3.70) is

falls between neutral (3) and agree (4), but it is approximate to 4(agree). This mean
64
value confirms that majority of respondents are replied agree in that MIS is very

efficient in CBE with more than 1 deviation from mean. Generally, the efficiency of

MIS in the commercial bank of Ethiopia, it is accepted by a majority of respondents.

c. The MIS in my organization is flexible enough

As depicted in Table 4.9, descriptive statistics result shows the mean value of 3.68 and

std. Deviation of 0.885.Further, the mean value indicates majority of respondents

replied agree with less than 1 deviation from the mean. Hence, the current existing

MIS in commercial bank of Ethiopia is flexible enough as seen from the data. This

result is supported by the study conducted by Ahmad, Hanini and, Oqaily, (2018) who

founds significantly MIS help helps banks to change the service delivery system based

on customers’ expectations and timely response to the change in technology.

d. I am satisfied with the accuracy and objectivity of my organization MIS

Respondents were asked to reply with their satisfaction on the accuracy and objectivity

of MIS. The descriptive output data in table 4.9 show 3.93 & 0.772 mean and std.

Deviation respectively. The mean value further confirms most of the respondents

replied agree with less than 1 deviation from the mean. Hence, currently, employees of

CBE are satisfied with the objectivity and accuracy of MIS in the organization

significantly according to observed mean value from the data.

For user satisfaction dimension at all most of respondents replied agree on MIS that

improves their job productivity, MIS is efficient, flexible enough, accurate, and

objective with a mean of 4.38, 3.70, 3.68 & 3.93 respectively. The descriptive statistics

result show that currently in CBE MIS improve work productivity, it is efficient which

reduce unnecessary resource utilization through reducing paperwork, it is flexible

enough which is easy to adopt any technological change introduced and it is accurate

and has its own objectives that guide employees towards to it significant with a mean

value greater than 3.68.

65
 4.4.6. Net benefit

Table 4.10: Mean and Std. Deviation table for Net benefit

Std.

N Mean Deviation

Using MIS in my organization helps reducing the time

136 4.41 .509
fixed to accomplish my task

Using the MIS in my organization improve my job

136 4.43 .497
performance

The application of MIS in my organization helps

136 4.38 .486
organization productivity

The MIS in my company enhances the effectiveness of

136 4.60 .491
my job

Source: - survey questioner, 2021

a. Using MIS in my organization helps reducing the time fixed to accomplish

my task

As it is depicted in table 4.10 employees of CBE asked to respond in regard to MIS

reducing the time given to accomplish a given task with a descriptive output value of

4.41 & 0.509 mean and std. Deviation respectively. So the mean value portrays that

majority of respondents are replied to agree with less than 0.5 deviations from the

mean. Hence, in current CBE MIS enable employees to perform the given task with less

than the time required is significant.

b. Using the MIS in my organization improve my job performance

Descriptive statistics table above shows value of 4.43 & 0.497 mean and std. deviation

respectively. The mean value demonstrates the majority of respondents replied agree

with very close to mean with less than 0.5 deviation. This confirms that the existing

MIS in the commercial bank of Ethiopia improves job performance of employees

significantly.

66
 c. The application of MIS in my organization helps organizational

productivity

According to the data observed in table 4.10, computed descriptive statistics shows a

mean value of 4.38 and std. Deviation of 0.486 for this question. The mean value

confirms that the majority of respondents replied agree. Moreover value for std.

Deviation is less than 0.5 which shows the majority of respondents were replied very

close to the mean value. Hence, there is the organizational productivity with the

application of MIS in the commercial bank of Ethiopia.

d. The MIS in my company enhances the effectiveness of my job

The descriptive statistics in table 4.10 above shows 4.60 &0.491mean value and std.

Deviation respectively. The mean value is approximate 5(strongly agree) which

confirms that the majority of respondents replied strongly agree option and the

deviation for this question shows the majority of respondents were replied close to an

average value. Hence, currently, MIS enhances job effectiveness in the commercial

bank of Ethiopia significantly.

Generally, with regards to user satisfaction, the majority of employees replied that MIS

reduces the time fixed to accomplish employees’ tasks, improves employees’ job

performance, job effectiveness, and improves the organization's productivity with a

mean value of 4.41, 4.43, 4.60 & 4.38 respectively with less than 0.5 deviations from

the mean. Hence, because of existing MIS currently in CBE employees perform their

job with less time than is required, improve job performance and effectiveness and

improve the organization productivity significantly with a mean value greater than 4.

67
4.5. The association between MIS and organizational performance
A person correlation method was employed to measure the association between the

dependent variable (organizational performance) and independent variable (MIS

indicators). A correlation coefficient is the end result of a correlation analysis to which

the direction of the association is determined by the sign of the correlation coefficient

and its values vary between -1 and +1. A correlation coefficient of +1 indicates that the

two variables are perfectly related in a positive manner while, a correlation value of -1

indicates that two variables are perfectly associated in a negative manner, whereas a

correlation value of zero implies that the two variables being examined have no linear

relationship (Gogtay and Thatte, 2017). Prior to performing the regression analysis, a

correlation analysis was performed.

68
 Table 4.11: Pearson correlation coefficient matrix
OP Sysqu IQ Servequ IU US NB
OP Pearson 1
Correlation
Sig. (2-tailed)
N 136 1
Sysqu Pearson .569**
Correlation
Sig. (2-tailed) .000
N 136 136 1
IQ Pearson .538** .305**
Correlation
Sig. (2-tailed) .000 .000
N 136 136 136 1
Servequ Pearson .533** .292** .443**
Correlation
Sig. (2-tailed) .000 .001 .000
N 136 136 136 136 1
IU Pearson .411** .116 .151 .179*
Correlation
Sig. (2-tailed) .000 .178 .078 .037
N 136 136 136 136 136 1
US Pearson .723** .369** .467** .355** .367**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .000
N 136 136 136 136 136 136 1
NB Pearson .700** .391** .404** .491** .181* .485**
Correlation
Sig. (2-tailed) .000 .000 .000 .000 .035 .000
N 136 136 136 136 136 136 136
** Correlation is significant at the 0.01 level (2-tailed).
* Correlation is significant at the 0.05 level (2-tailed).

69
Note: OP (organizational performance), Sysqu (system quality), IQ (information

quality), Servequ (service quality), IU (Intension to use) & NB (Net benefit).

Source: - survey questioner, 2021

The result in Table 4.11 implies that the association between organizational

performance and MIS indicators (system quality, information quality, service quality,

intention to use, user satisfaction, and net benefits). As it is noted by, Cohen, (1992)

correlation coefficient (r) between 0±0.1 represents a low effect, 0±0.3 is a medium

effect and 0±0.5 is a high effect.

As shown in the correlation table the Pearson correlation result implies that system

quality, information quality, service quality, user satisfaction, and net benefit have a

strong and positive association at r, (.569**, .538**, .533**, .700** & .723**) with

organizational performance respectively. Accordingly, intention to use has a positive

and moderate association with organizational performance with a correlation

coefficient of r, (411**).

Generally, the resulting value of Pearson correlation (2-tailed) for this study confirms

that all MIS indicators such as system quality, information quality, service quality,

intention to use, user satisfaction, and net benefit have a positive association with

organizational performance.

4.6. Multiple regression analysis

4.6.1. Assumptions of multiple regression analysis

Before performing linear regression analysis, it is essential to test assumptions of

multiple linear regression analysis Model (Keith, 2006). Accordingly, there are

principal assumptions that justify using multiple linear regression models for purposes

of inference or prediction. Accordingly, normality, linearity, Homoscedasticity, and

multicollinearity were tested as below.

70
 4.6.1.1. Normality Test

This assumption formally applies to the distribution of the errors (or, equivalently, the

conditional distribution of the response variable) for any given combination of values

on the predictor variables (Williams, Alberto ,and Grajales, 2013)

The histogram is a frequency diagram created by dividing the data into evenly spaced

cells and graphing the frequency of each cell against the cell's center. The residuals

histogram can be used to determine if the variance is normally distributed. Asymmetric

bell-shaped histogram which is evenly distributed around zero indicates that the

normality assumption is likely to be true and if the histogram indicates that random

error is not normally distributed, it suggests that the model's underlying assumptions

may have been violated. As displayed in figure 4.7 below the normality histogram for

this study was approximately bell-shaped, which shows the data used in this study were

normally distributed.

Figure 4.7: Normality test

Source: survey questioner, 2021

4.6.1.2. Linearity assumption

Multiple regressions can accurately estimate the relationship between dependent and

independent variables; when the relationship is linear in nature. “Standard multiple

71
regressions can only accurately estimate the relationship between dependent and

independent variables if the relationships are linear in nature” (Williams, M. N.,

Grajales, C. A. G., & Kurkiewicz, 2013). If the relationship between the independent

variables and the dependent variable is not linear the resulting regression outcome such

as; regression coefficients, standard errors, and tests of statistical significance may be

biased (Osborne and Waters, 2003). The linearity assumption for this study was

checked by p-plot residual shows there was no linearity problem as it is seen in figure

4.8 below.

Figure 4.8: Linearity test

Source: survey questioner, 2021

4.6.1.3. Homoscedasticity test of the model

When inferring with a linear regression model, we usually assume that the errors are

evenly distributed for each of the predictor variables; this is referred to as

'Homoscedasticity' while the residuals do not support Homoscedasticity, they are

referred to as ‘heteroscedasticity (Hickey et al., 2019). Concerning this errors are

assumed to be spread out consistently between the variables. This study used a scatter

72
plot of standardized residuals against standardized predicted values to check

Homoscedasticity to which a random pattern centered on the line of zero standard

residual value.

For this study, almost all the values (Scatter plot) were between ±3.3, which

confirmed there was no heteroscedasticity problem to the model as is indicated in

figure 4.9 below;

Figure 4.9: Scatter plot diagram

Source: - survey result of 2021

4.6.1.4. Multicollinearity test of the model

Multicollinearity is the situation that may arise from the relationship among

predicators’ variables is high which affects the instability of regression coefficients

(Aiken et al., 2012). Regards to this tolerance and Variance Inflation Factor (VIF) were

used to tests correlation among each independent variable. Multicollinearity assumed

to exist if VIF is greater than or equal to 10 and tolerance (T = 1/VIF) is less than or

equal to 0.1. VIF = (1/1-R2). T = 1 − R2 j, the reciprocal of VIF, where each predictor is

regressed on all of the other predictors in the analysis. A rule of thumb for tolerance and

73
VIF is that the tolerance should not be less than 0.1, and the VIF should not be more

than 10 (Miles, 2005).

Accordingly, the regression result computed by SPSS v.23 stated that there were no

problems of Multicollinearity problems as indicated below table 4.12.

Table 4.12: Multi co linearity statistics

Coefficients

Model Co linearity Statistics

Tolerance VIF

1 system quality .792 1.263

Information quality .679 1.474

Service quality .679 1.473

Intension to use .860 1.163

User satisfaction .591 1.692

Net benefits .615 1.627

a. Dependent Variable: Organizational performance

Source: - survey questioner, 2021

4.6.2. Regression analysis result

Regression analysis is used to know how much the independent variable explain the

dependent variable. In this study, multiple linear regression analysis used to measure

how each independent variable (system quality, information quality, intention to use,

service quality, user satisfaction, and net benefits) explains the dependent variable

(organizational performance).

The results of regression analysis among MIS and organizational performance

discussed as follows: - The regression result of model summary observed below table

4.13 indicates that the coefficient of determination(R) with a value of 0.885a (88.5%)

and R2 with a value of 0.783 (78.3%). More the R square value for this study confirms

that MIS indicators such as; system quality, information quality, service quality,

74
intention to use, user satisfaction, and net benefits were determined organizational

performance by 78.3%. However, the remaining 21.7% indicated other factors that

determine the dependent variable other than the variables used in this study.

Table 4.13: Model Summary

Adjusted R Std. Error of

Model R R Square Square the Estimate Durbin-Watson

1 .885a .783 .773 .20874 1.617

a. Predictors: (Constant), Net benefits, Intension to use, system quality,

Information quality, Service quality, User satisfaction

b. Dependent Variable: Organizational performance

Source: survey questioner, 2021

75
 Table 4.14: Regression coefficients

Model Un standardized Standardized T Sig. 95.0%

Coefficients Coefficients Confidence

Interval for B

B Std. Beta Lower Upper

Error Bound Bound

1 (Constant) 1.410 .135 10.469 .000 1.144

1.677

system .133 .026 .238 5.166 .000 .082 .184

quality

Information .012 .005 .108 2.168 .032 .001 .022

quality

Service .010 .005 .113 2.269 .025 .001 .020

quality

Intension to .019 .005 .169 3.815 .000 .009 .029

use

User .259 .042 .329 6.179 .000 .176 .342

satisfaction

Net benefits .045 .007 .318 6.082 .000 .030 .060

Source: - survey questioner, 2021

The result of regression value on table 4.14 indicates that ꞵ value for system quality was

.133 at t= 5.166 & p= .000. Further, the ꞵ value (.133) for system quality implies that an

increase in the effectiveness of system quality by 1% leads to an increase in

organizational performance by 13.3% at sig level of .000 & t= 5.166. The ꞵ value for

information quality was .012 at t=2.168 & p= .032. More the ꞵ value (.012) shows that

an increase of 1% of information quality results in 1.2% on organizational performance

and vice versa at p = 0.032 & t= 2.168. The ꞵ value for service quality was .010 at t=

2.269 & p= .025.Further, the ꞵ value (.010) of regression coefficient for service quality

76
confirms that any improvement in service quality by 1% tends to increase the

organizational performance by 1% at sig value .025 & t= 2.269.The ꞵ value for

intension to use was .019 at t = 3.815 & p = .000, shows that an increase in intention to

use by 1% leads to an increase of 1.9% on organizational performance. The ꞵ value for

user satisfaction was .259 at t = 6.179 & p = .000 which confirms that an increase in

user satisfaction by 1% leads to an increase of 25.9% on organizational performance.

Net benefit has a ꞵ value of .045 at t = 6.082 & p = .000, which indicates an increase in

net benefit by 1% leads to an increase of 4.5% on organizational performance.

This regression result confirms that MIS indicators have positive and significant effects

on organizational performance at p-value < .05. Hence, each MIS indicator has direct

and significant influences on organizational performance to which the more the

organization works on improving each indicator the organizational performance tends

to be good, while, the focus for those variables gets low it leads the organization to

perform weakly in overall aspects of its performance. The relationship of

organizational performance (Y) to the independent variables system quality (X1),

informational quality (X2), service quality (X3), intention to use (X4), user

satisfaction(X5), and net benefit(X6) can be expressed as Y =

β0+β1X1+β2X2+β3X3+β4X4+β5X5+ꞵ6X6 + ↋i. Here, β0 is constant and βn is the

coefficient of independent variables. An Unstandardized Coefficients table column was

used to constructing a regression equation. Based on this the following linear regression

model equation formed from the above table 4.14:-

Organizational performance = 1.410 + 0.133 system quality + 0.012 information

quality + 0.010 service quality + 0.019 intension to use + 0. 259 user satisfaction +

0.045 net benefits.

4.7. Effects of MIS on organizational performance

In this part, independent variable MIS indicators were tested to check whether they

affect positively and strongly affect the dependent variable organizational performance

or not based on research objectives and research questions. To do this, six hypotheses

77
have been tested to answer the research questions based on the research problem and

objectives. The hypotheses address each MIS indicator such as; (system quality,

information quality, intention to use, service quality, user satisfaction, and net

benefits).

4.7.1. Effects of system quality on organizational performance

Hypothesis 1: system quality has significant and positive effects on organizational

performance.

System quality has significant and positive effects on organizational performance at a

p-value of .000 and β value .133.

The p-value of system quality (.000) is less than the level of significance, α = .05. This

proves that there is sufficient evidence to agree with the study hypothesis. Due to the

fact, H1 failed to reject to which the study confirmed system quality has a positive and

significant effect on organizational performance. In addition to this, the ꞵ value (.133)

for system quality implies that an increase in the effectiveness of system quality by 1%

leads to an increase in organizational performance by 13.3% at sig level of .000 & t=

5.166. Therefore, more CBE should work on system quality by improving system

connection, using updated and sophisticated hardware and software technologies, and

building strong system security to reduce illegal access and cyber attack to the system,

certainly such conditions will improve the overall organizational performance of the

bank. This finding is consistent with the previous study conducted by (Bahari and

Mahmud, 2009; Hsieh and Wang, 2007; Wixom and Todd, 2005, & Ahmad and

Omar, 2016).

4.7.2. Effects of information quality on organizational performance

Hypothesis test 2: information quality has significant and positive effects on

organizational performance.

Information quality has significant and positive effects on organizational performance

at a p-value of .032 and β value.012. The p-value of information quality (.032) is less

than the level of significance, α = .05. This proves that there is sufficient evidence to

78
agree with the study hypothesis. Due to the fact, H2 failed to reject to which the study

confirmed information quality has a positive and significant effect on organizational

performance.

Further, regression coefficients indicate an increase of 1% of information quality

results in 1.2% on organizational performance and vice versa at p = 0.032 & t= 2.168.

An increase of ease of use to the system users, reducing noise, improving data quality,

adapting information to increase its pertinence, and saving users time and money shifts

the organizational performance positively and significantly (Choo, 1995). unless it is

difficult to assess the quality of information without monitoring and improving existing

information quality as per change with technology (Gorla, Somers, and Wong, 2010).

Further hypothesis result of this study in line with previous studies of Kalhoro et al.,

(2019) ; Bahari and Mahmud, (2009) ; Azeez and Yaakub, (2019a) ; Azeez and

Yaakub,(2019b) while ,it contradict with the finding of (Omiunu O.G., 2015).

4.7.3. Effect of service quality on organizational performance

Hypothesis test 3; service quality has significant and positive effects on organizational

performance.

Service quality has a positive and significant effect on organizational performance at a

p-value of .025 and ꞵ value .010. The p-value of service quality (.025) is less than the

level of significance, α = .05. This proves that there is sufficient evidence to agree with

the study hypothesis. Due to the fact, H3 failed to reject to which the study confirmed

service quality has a positive and significant effect on organizational performance.

In addition, the ꞵ value of regression coefficients confirms that any improvement in

service quality by 1% tends to increase the organizational performance by 1% at sig

value .025 & t= 2.269. So, making the system easy to use, functional, reliable, high data

quality, flexible, integrated, accurate, sophisticated, and customized enable the

organization to improve its service quality and the improved service quality brings

better organizational performance DeLone and McLean, (2003) and (Sedera and Gable,

2004). This finding is consistent with the findings of studies done by , (Bahari and

79
Mahmud, 2009), Aswar and Hafizh, (2020), (Wei, 2012),(Ali, Omar, and Bakar, 2016)

and (Munawar, 2014) who found a positive relationship between service quality and

organizational performance.

4.7.4. Effects of intension to use on organizational performance

Hypothesis test 4; Intension to use has significant and positive effects on

organizational performance.

Intention to use (Use) has significant and positive effects on organizational

performance at a p-value of .000 and β value .019. The p-value of intention to use (.000)

is less than the level of significance, α = .05. This proves that there is sufficient

evidence to agree with the study hypothesis. Due to the fact, H4 failed to reject to which

the study confirmed an intention to use has a positive and significant effect on

organizational performance.

The more system users use the system the better the organizational performance will be

achieved as shown in the above regression model table 4.16 because the ꞵ value for

intention to use was positive. Further, the ꞵ coefficient of regression indicates that an

increase in intention to use by 1% leads to an increase of 1.9% on organizational

performance at sig value of .000 & t of 3.815. Finally, this study in line with the study

conducted by Kalhoro et al., (2019), (Bahari and Mahmud, 2009), who found a positive

relationship between intention to use and organizational performance while a study

conducted by Azeez and Yaakub, (2019a) , Azeez and Yaakub, (2019b) & Omiunu

O.G., (2015), contradict with the finding of this study.

4.7.5. Effects of user satisfaction in organizational performance

Hypothesis 5; User satisfaction has significant and positive effects on organizational

performance.

User satisfaction has significant and positive effects on organizational performance at a

p-value of .000 & ꞵ value of .259. The p-value of user satisfaction (.000) is less than the

level of significance, α = .05. This proves that there is sufficient evidence to agree with

80
the study hypothesis. Due to the fact, H5 failed to reject to which the study confirmed

user satisfaction has a positive and significant effect on organizational performance.

As indicated in Table 4.15 under the Unstandardized coefficients column an increase of

1% of user satisfaction leads to the increase by 25.9% in organizational performance at

sig value .000 & t= 6.179. User satisfaction is an important concept regardless of any

type of organization whether it is a business or non-business organization because

unless the user of the system satisfied difficult for the organization to survive without

user satisfaction of the system. The study result revealed in this study in line with the

previous study of Azadeh, Salehi ,and Salehi, (2016), Azeez and Yaakub, (2019a) &

(Azeez and Yaakub, 2019b).

4.7.6. Effects of Net benefit and organizational performance

Hypothesis 6; Net benefit has significant and positive effects on organizational

performance.

Net benefit has significant and positive effects on organizational performance at a

p-value of .000 and ꞵ value of .045. The p-value of information quality (.000) is less

than the level of significance, α = .05. This proves that there is sufficient evidence to

agree with the study hypothesis. Due to the fact, H6 failed to reject to which the study

confirmed information quality has a positive and significant effect on organizational

performance.

More an increase in 1% of intention to use leads to an increase by 4.5 % in

organizational performance at sig value of .000 & t = 6.082 as it is observed in the

Unstandardized regression coefficient table column. More the bank applies and

improves MIS it leads to improve decision-making, improve productivity, cost

reductions, improved profits, market efficiency, customer satisfaction, and economic

development. The study result revealed in this study in line with the previous studies of

Azeez and Yaakub, (2019a) & (Azeez and Yaakub, 2019b).

81
 CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
This chapter deals with conclusions, recommendations and suggestions for future

research direction.

5.1. Conclusions
The main aim of this study was to examine the effect of management information

systems on the organizational performance of the commercial bank of Ethiopia,

Hossana town.

The demographic analysis of respondents for this study was measured by Gender, age,

the field of specialization, educational background, current position, and years of

experience. Accordingly, the majority of respondents are males and aged in the range

of 31-36. Regarding field of specialization, education background, and organizational

position Majority of the respondents are specialized by management, first university

degree holders, and work at officer positions respectively. In terms of year of

experience majority of respondents fall between 3-6 years of experience in the banking

industry.

Organizational performance for this study was measured by financial perspectives,

customers’ perspectives, internal process perspectives, and employees' learning and

growth. Financial perspectives of organizational performance at CBE, Hossana town

shows that there is effective cost control, good financial performance position, and

efficient resource management that resulted from an existing management information

system.

The existing MIS in CBE, Hossana town consistently meet the expectations of

Customers, satisfying and making them loyal to the organization, this due to the

existing flexible service that customized per customer demand and easily

understanding procedures.

Internally MIS fairly improves the working culture of the organization, service delivery

process and enhancing the easy flow of communication within and among the
82
employees of the bank. With regard to employees learning and growth employees of

CBE develop a sense of task accomplishment and they can develop the tendency of

optimal decision making due to existing MIS. However, MIS in CBE, Hossana town is

insignificant regarding improving teamwork in an organization.

The MIS indicators system quality, information quality, and service quality, intention

to use (use), user satisfaction, and net benefits were briefly discussed.

System quality in current CBE is easy to use, functional in meeting employees’

requirements, and secure significantly, however it is not available at any time when it is

needed.

In regard to information quality MIS provide information in a useful and

understandable manner, timely to use, updated and accurate information to employees

of the commercial bank of Ethiopia significantly. Further, the service quality provided

by MIS of CBE is characterized by the good response time, service in a manner well to

use and its quality has a significant effect on the overall performance of the entire

organization. However, CBE, Hossana town has an inadequate number of technical

specialists who deal with system breaks. As it is known the break down in one system

of the organization will result fall entire organization.

Intension to use by the system user in current CBE shows that employees of the bank

use the system always, have the interest to continue with using MIS, and number of

system users increase from time to time in CBE significantly. However, current CBE is

characterized by shortage of human and material resources to support the organization

MIS.

Currently System users (employees) of CBE are satisfied in an organization MIS which

improve job productivity of employees, efficient, flexible, accurate & objective.

The net benefit obtained from MIS to both the organization and its system users in

current CBE is significant. Due to exiting MIS employees of CBE improve their job

performance, job effectiveness, able to reduce the time fixed to accomplish certain

tasks, and improve the organization's productivity.

83
Regarding to the association between MIS and organizational performance, the person

correlation result confirms that MIS (system quality, information quality, service

quality, intension to use, user satisfaction, and net benefit) has a positive association

with an organizational performance at α = .05. Further, all MIS indicators associated

strongly with organizational performance except intension to use to which the r < .05

(.441).

Regression analysis is performed in this study used to measure the percent of the

independent variables that explain dependent variables and the significant effect of

independent variables on the dependent variables. Before analyzing multiple linear

regressions its assumptions were tested to which normality, linearity,

Homoscedasticity, and multicollinearity result shows that all were fit well as needed to

model adequacy. The regression result for this study confirms that MIS indicators

(system quality, informational quality, service quality, intention to use, user

satisfaction, and net benefit) have a positive and significant effect on organizational

performance of CBE at α = .05 to which the developed alternative hypothesis fails to

reject.

84
 5.2. Recommendations
Based on the data findings and conclusions, all six management information system

indicators such as system quality, informational quality, net benefits, intention to use,

service quality, and user satisfaction were found to positively affect the organizational

performance of the commercial bank of Ethiopia, Hossana town. Therefore, the

following recommendations were forwarded to CBE, Hossana town to further improve

the bank's organizational performance from detailed result analysis.

 Based on the result of finding system quality has positive and significant effect

on organizational performance of CBE, Hossana town. It is highly

recommendable to CBE, branches operating in Hossana town to improve

system quality to make the organizational performance good in all aspects

through making MIS of the bank always available to system users by applying

tight follow up on system requirement and practice from time to time.

 Service quality of MIS influences the organizational performance of CBE,

Hossana town positively and significantly. Based on the result of findings CBE,

Hossana town is recommendable to improve the service quality of MIS through

hiring and training MIS specialists who handle the breakdown of the system

that reduce the performance of system.

 Based on finding CBE, Hosanna town is recommendable to increase intension

to use of employees (system users) through providing material and human

resources supporting MIS, providing a training program to system users,

making the system itself too attractive and easier to users with flexible and

sophisticated technology.

 To increase the Net benefit obtained from MIS to both the organization and

system users CBE, Hossana town is recommendable to assess the overall

practice of MIS before a system intended expectations to check whether the

expected objective of the system achieved or not among employees, customers

and overall the organization.

85
 5.3. Direction for further study
In this study the effect of management information systems on organizational

performance was only done in CBE, Hossana town it is essential to research district

level for further generalization of the study. And this study was used six MIS

indicators to measure organizational performance but future researchers should add

other variables like leadership quality, management support, data quality, demographic

factors, TQM, and others. Even it is better to study the interrelationship between the

variables to which this study considers only their effects on dependent variables. The

model used in this study was linear regression analysis for a future researcher it is

recommendable to use the structural equation model (SEM) to further explaining the

information system success factors (MIS indicators). Also, most of the IS literature

supports AMOS (analysis of moment structures) and PLS (partial least square) used for

analyzing the structural equation model.

86
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 APPENDICES

JIMMA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

PROGRAM: MBA IN MANAGEMENT

Questionnaire designed for employees of CBE, Hossana town

Dear Employee

The purpose of this questionnaire is to collect primary data to conduct a study on the

research topic called: The effects of MIS on organizational performance the case of

Commercial Bank of Ethiopia, Hossana town, Hadiya Zone, SNNPR as a Partial

fulfillment for the requirement of Master in Business Administration (MBA) Program

at Jimma University. In this regard, I kindly request you to provide me reliable

information that is to the best of your knowledge so that the findings from the study

would meet the intended purpose. I strongly assure you that the information pertaining

to your answers in this questionnaire will be completely confidential and I would also

like to extend my deep-heart thanks to you in advance for being a volunteer to devote

your valuable time to answer this questionnaire.

Directions:

✓ No need to write your name.

✓ Answer by putting a tick mark in the boxes.

99
 ✓ In case you have ambiguities on any of the questions, please do not hesitate to

contact me

(Mobile No: 251-945647096, E-Mail: [email protected]).

✓ MIS refers Management Information Systems.

PART- I. Demographic Information of Respondents

1. Gender Male Female

2. Age

Below 30 31 -36 37-42 43-48 above 48

3. Field of Specialization

Accounting & Finance Banking and Finance

Business Administration Marketing

Economics Management

Others

4. Educational background

Doctorate degree First University degree

Master degree Diploma

5. Position in a bank

Manager Officer

100
 Auditor other

6. Years of experience

Below 5 yr 6-11 yr 12 – 17 yr 18 -23 yr Above 24 yr

Part II. Questionnaires in MIS indicators

Please indicate your level of agreement with each statement with Strongly Disagree (1) , Disagree (2), Neutral

(3), Agree (4) and Strongly (5)

A. System quality

No Items 1 2 3 4 5

1 MIS in my organization is easy to use

2 The function of MIS in organization meet my requirements

3 MIS in my organization always available

4 MIS in my organization is secure

B. Information quality

No Items 1 2 3 4 5

1 MIS provides me information in a useful and understandable format

2 MIS in my organization provides information timely to use

3 MIS provides me up to dated information

4 MIS in my organization provides system users with accurate

information

C. Service quality

1 The response time of MIS in my organization is good.

2 MIS in my organization provides well-mannered services for users.

3 The service quality of MIS in my organization affects the extent to

which the system can be used.

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4 My organization has MIS specialists to address technical problems and

emergencies if any.

D. Use of the system(Intension to use)

No Items 1 2 3 4 5

1 I often use the MIS applied in my organization

2 I am very interested in the process of continuing to use the MIS in my

organization have helped its success

3 The human and material resources supporting the MIS in my

organization have helped its success

4 The number of participants in the use of MIS in my organization has

been constantly increased since its beginning.

E. User satisfaction

No Items 1 2 3 4 5

1 Using MIS in my organization helps me to improve productivity

2 The MIS in my organization is very efficient

3 The MIS in my organization is flexible enough

4 I am satisfied with the accuracy and objectivity of my organization

MIS

No. F. Net benefits 1 2 3 4 5

1 Using MIS in my organization helps reducing the time fixed to

accomplish my task

2 Using the MIS in my organization will improve my job performance

3 The application of MIS in my organization helps organization

productivity

4 The MIS in my company enhances the effectiveness of my job

Part III. Questionnaires on organizational performance

102
Please indicate your level of agreement with each statement with Strongly Disagree (1) , Disagree (2), Neutral

(3), Agree (4) and Strongly (5)

A. Financial perspectives

No Items 1 2 3 4 5

1 MIS help us to be more effective at cost control

2 Utilization of MIS make financial performance of the organization is

good.

3 Resources are managed efficiently well with help of MIS

B. Customer Perspective

No. Items 1 2 3 4 5

1 MIS enable the organization consistently to meet the expectations of

clients

2 Most clients are satisfied in my organization due to MIS

3 Most clients are loyal to the organization from the service that system

provide them

C. Internal process

No Items 1 2 3 4 5

1 MIS improve working culture of the organization

2 MIS improve our service delivery Processes

3 MIS disseminate Communication flows easily throughout the

organization

D. Employees Learning & growth

Please indicate your level of agreement with each statement with Strongly Disagree (1) , Disagree (2), Neutral

(3), Agree (4) and Strongly (5)

Employee growth and learning have been identified as an important aspect of organizational

Performance. Please respond based upon your opinion concerning each statement.

No Items 1 2 3 4 5

1 MIS make me develop a sense of my task accomplishment

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2 MIS allow me to make optimal decisions to accomplish my

performance objectives

3 MIS enhances good teamwork in the organization

Thanks a lot for your patience

104