Academic journal article American Academic & Scholarly Research Journal

Testing Delone and Mclean's Model in Financial Institutions

Academic journal article American Academic & Scholarly Research Journal

Testing Delone and Mclean's Model in Financial Institutions

Article excerpt

Abstract. Information Systems (IS) success is critical in organizations, because of its direct and indirect impact on information flow inside and outside organizations, and therefore, it affects decision making process, that influence organizational success. The main objective of this study is to provide a further insight in to IS success, develop measurement tools for IS success, and then, test Delone and Mclean's model to ensure its validity and explanations to IS success factors. In order to test the research hypotheses, data were collected from IS end users in Palestinian financial institutions using a questionnaire. 189 usable surveys were used in data analysis. After that, construct validity and the internal consistency reliability of the measures were tested, using Coronbach's Alpha test. The results show high reliability of all used measures, where Coronbach's Alpha exceeds 0.7. Hypothesis embedded in the research model were tested using correlation, regression, and stepwise multiple regression analysis. The main findings supports Delone and Mclean's model, and shows that the model offers good explanation of IS success in Palestinian financial institutions, where most of the hypothesis were accepted.

Keywords: Information systems success, Delone and Mclean Model, Information Systems Measures.

INTRODUCTION

Information Systems (IS) has a critical role in both internal and external environment to organizations. Where IS facilitates coordination between organizational levels, information flow to stakeholders, and decision making. In addition; IS enables capturing environmental data which is related to competition, markets, and customers. Therefore; evaluating IS success considered to be critical to organizations overall success (Myers, 2003; Delone and Mclean, 2003, 2008).

The main objective of this study is to provide a further insight in to IS success dimensions, and refine the measures for this success. Therefore this study addresses the following questions:

1. What are Information Systems success dimensions?

2. How to measure Information Systems dimensions?

3. To what extent does the D&M model suites the financial institutions?

To pursue these questions, this study will provide further insight into IS success dimensions, refine the required measures for those dimensions, besides testing those measures and D&M model, depending on the data that will be collected from the Palestinian Financial Institutions.

2 THEORETICAL FRAMEWORK

2.1 Information Systems Success

Information system is an integrated computer-based system that utilizes computer hardware, software, users, procedures, models, and database which interacts to produce the suitable information at the appropriate time, to support organizational activities (McLeod and Schell, 2004; Laudon and Laudon, 2004).

Information systems success factors are set of dimensions and aspects that produce the net benefits of information system, which includes system quality, information quality, service quality, system use, user satisfaction, and net benefits (Delone and Mclean, 1992, 2003, 2008; Seddon, 1994, 1997).

System Quality:

System Quality is defined as a set of constructs related to information system that determines the quality of the systems. Those constructs are refined from the literature, and includes; system reliability, easy to learn, ease of use, user preemptive, flexibility, Integration with another systems.

Information quality:

Information quality is the degree to which information presents the required benefits. Those constructs are refined from the literature, and includes; availability, timeliness, relevant, accuracy, appropriateness, completeness, concise representation, interpretability.

Service quality:

Service quality is a set of characteristics related to services submitted by IS to customers which includes services reliability, assurance, empathy, and security. …

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