UNIVERSITI TUN HUSSEIN ONN MALAYSIA
STATUS CONFIRMATION FOR DOCTORAL THESIS
DEVELOPMENT OF AN INTEGRATED MODEL FOR ADOPTION OF
MANAGEMENT INFORMATION SYSTEMS IN YEMENI
TELECOMMUNICATION ORGANIZATIONS
ACADEMIC SESSION : 2015/2016
I, YASER HASAN SALEM ALWAN, agree to allow this Doctoral Thesis to be kept at the Library under the following terms:
1. This Doctoral Thesis is the property of the Universiti Tun Hussein Onn Malaysia. 2. The library has the right to make copies for educational purposes only. 3. The library is allowed to make copies of this report for educational exchange between
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and is sufficient in fulfilling the scope and quality for the purpose of awarding the
Degree of Doctor of Philosophy.
Chairperson:
PROF. DR. AHMAD SHAKRI BIN MAT SEMAN
Faculty of Technology Management and Business
Tun Hussein Onn University of Malaysia
Examiners:
PROF. T. RAMAYAH
School of Management
University of Science, Malaysia
DR MD FAUZI BIN AHMAD MOHAMAD
Faculty of Technology Management and Business
Tun Hussein Onn University of Malaysia
DEVELOPMENT OF AN INTEGRATED MODEL FOR ADOPTION OF
MANAGEMENT INFORMATION SYSTEMS
IN YEMENI TELECOMMUNICATION ORGANIZATIONS
YASER HASAN SALEM ALWAN
A thesis submitted in
fulfillment of the requirement for the award of the
Doctor of Philosophy in Technology Management
Faculty of Technology Management and Business
Universiti Tun Hussein Onn Malaysia
July 2016
ii
I hereby declare that this thesis entitled “Development of An Integrated Model for
Adoption of Management Information Systems in Yemeni Telecommunication
Organizations” is the result of my own research except as cited in the references. This
thesis has not been accepted for any degree and is not concurrently submitted in
candidature of any other degree.
Student : . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .YASER HASAN SALEM ALWAN
Date : . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supervisor : . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .ASSOCIATE PROFESSOR DR. ALINA
BINTI SHAMSUDDIN
Co-Supervisor : . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .DR. NOR AZIATI BT
ABDUL HAMID
iii
This thesis is dedicated to the most special people in my life; my parents, Shukria and
Hasan; my wife, Reema; our son, Raiyan; our daughter, Raseel; my brothers, Fahd,
Khaled, Mohammed and Abdul-Jabbar; and my sisters, Amera and Abeer.
iv
ACKNOWLEDGEMENT
In all stages of doing this thesis, I dreamt of reaching the moment of writing the
acknowledgments, which is in my case, the final part. All the people who have done
a PhD before know what this moment means. The completion of this thesis would
not have become a reality without the invaluable support, sacrifice, encouragement,
and inspiration of several individuals and organizations. Hence, I wish to express my
appreciation to all those who extended their support in many different ways.
I would like to thank my dignified, beloved supervisor Associate Prof. Dr Alina
Binti Shamsuddin for all the support and help during this research. Besides, I learnt
from her not only how to do this research but many other things. I was very fortunate to
be under her supervision, as she embraced every responsibility of a principal supervisor
to guide my research. I also acknowledge with gratitude the intellectual support of
my co-supervisor Dr. Nor Aziati Bt Abdul Hamid, who provided me with invaluable
assistance, especially in structural equation modeling (SEM). She showed a great deal
of interest in reading, discussing and giving feedback on all aspects of my thesis. To
both of my supervisors, a hearty thank you. I also acknowledge with gratitude my
internal examiner Dr. Fauzi Bin Ahmad Mohamad, and external examiner, Professor
T. Ramayah, their valuable comments paved the way for shaping and revising the study.
My thanks go also to all lecturers and professors of UTHM who contributed immensely
towards boosting my wealth of knowledge.
I am also grateful to the Republic of Yemen for its full financial support during
my bachelor, master, and doctoral studies in.
Last but certainly not least, I would like to thank my wife, my son, and my
daughter (Reema Ahmed Abdo Al-Mamary, Raiyan, and Rassel) for their constant
v
support, endless encouragement and for standing beside me during the doctoral jour-
ney. In addition I would like to express a sense of gratitude to my beloved parents
(Hasan Salem Alwan Al-mamary and Shukria Abdullah Qasim AlFaqih) who I love
so much. I also would like to thank my brothers, sisters, sister in law, Ghuzlan, and
friends for their help. I am deeply indebted to them for being constantly supportive
throughout the duration of my studies.
vi
ABSTRACT
The Telecommunication sector is a significant contributor towards countries’ economic
activities. Recently, the developing nations have witnessed significant transformations
in this sector due to its impact on their economies. In the context of Yemen, telecom-
municationis an interesting sector due to its high growth rate over the past few decades
compared to other sectors. The sector’s revenue alone has accounted for 13 % of
Yemeni GDP. Consequently, Telecommunication is important in the Yemeni economy.
There are various issues faced by this sector, especially in the Yemeni context such as
inadequate training provided to end users, insufficient support provided by top man-
agement, insufficient quality of information and data, and low level of employee’s
satisfaction. Apart from that, the previous issues have caused low level of individual
performance. Hence, this study focused on the previous factors as well as other fac-
tors which are rarely mentioned in previous studies in Yemeni context. Management
information systems is one of the most important solutions in telecommunication orga-
nizations, which is used to solve the previous issues in Yemen. Moreover, the adoption
of management information systems in Yemeni Telecommunication companies plays
an imperative role to develop and further improve individual performance by resolving
the stated issues. Hence, the objective of this study was to develop an integrated model
for the adoption of management information systems in Telecommunication organiza-
tions. In addition, this study determined the impact of technological, organizational,
and people factors on perceived usefulness and user satisfaction towards enhancing
individual performance. Questionnaire was used to collect primary data and the col-
lected data were analyzed by using AMOS version 21 and SPSS version 22. The
response rate in this study was 60.57%. 382 effective cases were analyzed with the
SEM technique to validate the proposed model where data were obtained from four
telecommunication companies. CFA and hypothesized model were tested with SEM
vii
technique in this study. The findings showed that technological factors (system quality,
and information quality) and people factors (computer self-efficacy, and computer ex-
perience) impacted on perceived usefulness. In addition, technological factors (system
quality, and information quality), organizational factor (user training), people factor
(computer experience) and perceived usefulness impacted on user satisfaction while
perceived usefulness impacted on individual performance. The findings of this study
would be useful for managers, especially in the Telecommunications sector to under-
stand the impact in the adoption of management information systems. The success of
the adoption affects individual performance, thus the revenue of these companies will
increase and have a positive role in improving the country’s economy.
viii
ABSTRAK
Sektor Telekomunikasi merupakan penyumbang utama ke arah aktiviti-aktiviti ekonomi
negara. Baru-baru ini, negara-negara membangun telah menyaksikan perubahan yang
ketara dalam sektor ini disebabkan oleh kesan ke atas ekonomi mereka. Dalam kon-
teks Yaman, sektor Telekomunikasi merupakan sektor menarik kerana kadar pertum-
buhan yang tinggi sejak beberapa dekad yang lalu berbanding sektor-sektor yang lain.
Hasil sektor Telekomunikasi sahaja menyumbang 13% kepada KDNK Yaman. Oleh
hal yang demikian, sektor Telekomunikasi merupakan satu sektor penting yang mem-
berikan kesan kepada ekonomi Yaman. Terdapat pelbagai isu yang dihadapi oleh sek-
tor ini terutamanya dalam konteks Yaman seperti latihan yang tidak mencukupi yang
diberikan kepada pengguna akhir, sokongan yang tidak mencukupi yang disediakan
oleh pengurusan atasan, kualiti yang tidak mencukupi maklumat dan data, dan tahap
rendah kepuasan pekerja, isu-isu sebelum ini menyebabkan rendahnya tahap prestasi
individu. Kajian ini memberikan tumpuan kepada faktor-faktor sebelumnya dan faktor-
faktor lain yang jarang disebut dalam kajian-kajian sebelum ini dalam konteks Ya-
man. Sistem maklumat pengurusan merupakan salah satu penyelesaian yang paling
penting dalam organisasi Telekomunikasi yang digunakan untuk menyelesaikan isu-
isu sebelumnya di Yaman. Penggunaan sistem maklumat pengurusan dalam syarikat-
syarikat Telekomunikasi Yaman memainkan peranan yang penting untuk dimajukan
lagi bagi meningkatkan prestasi individu dengan menyelesaikan isu-isu yang diny-
atakan. Oleh itu, objektif kajian ini untuk membangunkan model bersepadu bagi
penggunaan sistem maklumat pengurusan dalam organisasi Telekomunikasi. Di samp-
ing itu, menentukan kesan teknologi, organisasi, dan orang-orang pada faktor dilihat
kegunaan dan kepuasan pengguna ke arah meningkatkan prestasi individu. Soal selidik
ix
telah digunakan untuk mengumpulkan data primer dan data yang dikumpulkan dianal-
isis dengan menggunakan AMOS versi 21 dan SPSS versi 22. Kadar tindak balas
dalam kajian ini ialah 60.57%. 382 kes berkesan dianalisis dengan teknik SEM untuk
mengesahkan model yang dicadangkan. Kajian ini melibatkan empat syarikat Teleko-
munikasi. CFA dan model hipotesis telah diuji dengan teknik SEM dalam kajian ini.
Dapatan kajian menunjukkan bahawa faktor-faktor teknologi (sistem kualiti dan kualiti
maklumat), faktor-faktor orang (komputer efikasi-kendiri dan pengalaman komputer)
kesan kepada kegunaan dilihat. Di samping itu, faktor-faktor teknologi (sistem kualiti
dan kualiti maklumat), faktor-faktor organisasi (latihan pengguna), faktor-faktor orang
(pengalaman komputer) dan kegunaan dilihat kesan kepada kepuasan pengguna. Se-
lain itu, kegunaan dilihat memberikan kesan kepada prestasi individu. Hasil kajian ini
akan menjadi berguna untuk para pengurus, terutamanya dalam sektor Telekomunikasi
dalam memahami kesan penggunaan sistem maklumat pengurusan. Penggunaan ke-
jayaan sistem maklumat pengurusan memberikan kesan kepada prestasi individu, oleh
itu hasil daripada syarikat-syarikat ini akan meningkat dan akan memainkan peranan
yang positif dalam meningkatkan ekonomi negara.
x
CONTENTS
TITLE i
DECLARATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT vi
ABSTRAK viii
CONTENTS x
LIST OF TABLES xix
LIST OF FIGURES xxii
LIST OF SYMBOLS AND ABBREVIATIONS xxiv
LIST OF APPENDICES xxvii
CHAPTER 1 INTRODUCTION 1
1.1 Introduction 1
1.2 Background of the Study 1
1.2.1 Telecommunication Industry: A Perspective 1
1.2.2 Telecommunication Industry: Issues and Chal-lenges 5
xi
1.2.3 Importance of Management Information Systemsin Organizations 6
1.3 Problem Statement 8
1.4 Research Questions 11
1.5 Research Objectives 11
1.6 Significance of The Study 12
1.7 Research Scope 14
1.8 Definition of Variables 14
1.8.1 System Quality 14
1.8.2 Information Quality 14
1.8.3 Service Quality 15
1.8.4 Top Management Support 15
1.8.5 User Training 15
1.8.6 Computer Self-Efficacy 16
1.8.7 Computer Experience 16
1.8.8 Perceived Usefulness 16
1.8.9 User Satisfaction 16
1.8.10 Individual Performance Impact 17
1.9 Organization of Thesis 17
CHAPTER 2 LITERATURE REVIEW 19
2.1 Introduction 19
2.2 Information Systems 19
2.2.1 Overview of Information Systems 19
2.2.2 Types of Information Systems 21
2.3 Management Information Systems (MIS) 23
xii
2.3.1 The Concept of MIS 23
2.3.2 Definition of MIS 25
2.3.3 Benefits of MIS 26
2.3.4 The Role of MIS in Organizations 27
2.3.5 Types of MIS in Yemeni Telecommunication Or-ganizations 29
2.3.5.1 Human Resource Information Systems 30
2.3.5.2 Accounting Information Systems 31
2.3.5.3 Financial Information Systems 32
2.3.5.4 Customer Relationship Management Sys-tem 33
2.3.5.5 Billing System 35
2.3.6 Summary 38
2.4 Theories in Field of Successful Adoption of InformationSystems 38
2.4.1 Theory of Reasoned Action (1980) 40
2.4.2 Social Cognitive Theory (1986) 41
2.4.3 Technology Acceptance Models 44
2.4.4 Technology, Organization, and Environment Frame-work (1990) 49
2.4.5 End-User Computing Effectiveness Model (1990) 51
2.4.6 Theory of Planned Behavior (1991) 53
2.4.7 Model of PC Utilization (1991) 57
2.4.8 Delone & Mclean’s Models 59
2.4.9 Motivational Model (MM) (1992) 63
2.4.10 Diffusion of Innovation (DOI) Theory (1995) 65
2.4.11 Summary 68
xiii
2.5 Summary of The Chapter 78
CHAPTER 3 CONCEPTUAL MODEL AND HYPOTHESES DEVEL-OPMENT 80
3.1 Introduction 80
3.2 Research Variables and Measurements 80
3.2.1 System Quality 81
3.2.2 Information Quality 82
3.2.3 Service Quality 83
3.2.4 Top Management Support 84
3.2.5 User Training 86
3.2.6 Computer Self-Efficacy 87
3.2.7 Computer Experience 88
3.2.8 Perceived Usefulness 89
3.2.9 User Satisfaction 90
3.2.10 Individual Performance Impact 91
3.2.11 Summary 92
3.3 The Conceptual Model 95
3.4 Hypotheses Development 96
3.4.1 Effect of System Quality on Perceived Useful-ness, and User Satisfaction 96
3.4.2 Effect of Information Quality on Perceived Use-fulness, and User Satisfaction 98
3.4.3 Effect of Service Quality on Perceived Useful-ness, and User Satisfaction 99
3.4.4 Effect of Top Management Support on PerceivedUsefulness, and User Satisfaction 100
xiv
3.4.5 Effect of User Training on Perceived Usefulness,and User Satisfaction 101
3.4.6 Effect of Computer Self-Efficacy on PerceivedUsefulness, and User Satisfaction 101
3.4.7 Effect of Computer Experience on Perceived use-fulness, and User Satisfaction 102
3.4.8 Effect of Perceived Usefulness on User Satisfac-tion, and Individual Performance Impact 103
3.4.9 Effect of User Satisfaction on Individual Perfor-mance Impact 103
3.5 Summary of The Chapter 104
CHAPTER 4 METHODOLOGY 108
4.1 Introduction 108
4.2 Research Design 108
4.3 Research Population / Sample 111
4.3.1 Introduction 111
4.3.2 Sampling Method 111
4.3.3 Sample Size 112
4.3.4 Sampling Procedure 113
4.4 Data Collection Method: Survey 114
4.5 Instrument Design 115
4.5.1 Introduction 115
4.5.2 Pretest 116
4.5.3 Pilot Study 123
4.6 Data Analysis Method (Quantitative Method) 125
4.6.1 Descriptive Analysis 126
4.6.2 Assumption of Multivariate Analysis 126
xv
4.6.3 Confirmatory Factor Analysis 126
4.6.4 Analysis for Structural Model 127
4.7 Reliability 128
4.8 Validity 129
4.8.1 Content Validity 130
4.8.2 Construct Validity 131
4.8.2.1 Convergent Validity 131
4.8.2.2 Discriminant Validity 131
4.9 Ethical Considerations 132
4.10 Summary of The Chapter 132
CHAPTER 5 DATA ANALYSIS AND RESULTS 134
5.1 Introduction 134
5.2 Data Editing and Coding 135
5.3 Response Rate and Non-Response Bias 135
5.3.1 Response Rate 135
5.3.2 Non Response Bias 136
5.4 Data Screening 138
5.4.1 Missing Data 138
5.4.2 Outliers Examination 141
5.5 Multivariate Analysis 142
5.5.1 Normality Test 142
5.5.2 Homoscedasiticity 144
5.5.3 Multicollinearity 145
5.6 Demographic Profiles 146
5.7 Descriptive Analyses 148
xvi
5.7.1 System Quality 148
5.7.2 Information Quality 149
5.7.3 Service Quality 150
5.7.4 Top Management Support 151
5.7.5 User Training 153
5.7.6 Computer Self-Efficacy 154
5.7.7 Computer Experience 156
5.7.8 Perceived Usefulness 157
5.7.9 User Satisfaction 158
5.7.10 Individual Performance Impact 159
5.8 Structural Equation Modeling 160
5.9 Measurement model 161
5.10 Measures of Goodness-of-Fit 162
5.11 Confirmatory Factor Analysis 163
5.11.1 Introduction 163
5.11.2 Confirmatory Factor Analysis Results 164
5.12 Reliability and Validity of a Measurement Model 168
5.13 Structural Model 172
5.13.1 Initially Proposed Structural Model 172
5.13.2 Revised Structural Model 176
5.14 Summary of The Chapter 180
CHAPTER 6 DISCUSSION , IMPLICATIONS, AND CONCLUSIONS 182
6.1 Introduction 182
6.2 Discussion 183
xvii
6.2.1 The Impact of System Quality on Perceived Use-fulness 183
6.2.2 The Impact of System Quality on User Satisfaction 184
6.2.3 The Impact of Information Quality on PerceivedUsefulness 185
6.2.4 The Impact of Information Quality on User Sat-isfaction 187
6.2.5 The Impact of Service Quality on Perceived Use-fulness 188
6.2.6 The Impact of Service Quality on User Satisfaction188
6.2.7 The Impact of Top Management Support on Per-ceived Usefulness 189
6.2.8 The Impact of Top Management Support on UserSatisfaction 190
6.2.9 The Impact of User Training on Perceived Use-fulness 191
6.2.10 The Impact of User Training on User Satisfaction 192
6.2.11 The Impact of Computer Self-Efficacy on Per-ceived Usefulness 193
6.2.12 The Impact of Computer Self-Efficacy on UserSatisfaction 194
6.2.13 The Impact of Computer Experience on PerceivedUsefulness 194
6.2.14 The Impact of Computer Experience on User Sat-isfaction 195
6.2.15 The Impact of Perceived Usefulness on User Sat-isfaction 196
6.2.16 The Impact of Perceived Usefulness on Individ-ual Performance 197
xviii
6.2.17 The Impact of User Satisfaction on Individual Per-formance 198
6.3 Implications 199
6.3.1 Theoretical Implications 199
6.3.2 Practical Implications 202
6.4 Limitations of the Study 204
6.5 Directions for Future Research 206
6.6 Conclusion 207
REFERENCES 209
APPENDICES 238
VITA 263
xix
LIST OF TABLES
1.1 Number of Subscribers in the Different Means of
Telecommunications
2
1.2 The Number of Subscribers in the Cellular Network
between 2005- 2013
3
1.3 The Cellular Network Operating Lines by Companies:2011
- 2013
4
2.1 Types of MIS in Yemeni Telecommunication Companies 37
2.2 Summary of The Strengths and Weakness of The Theories 69
2.3 Factors that Used in this Study 77
3.1 Summary of the Variables 93
3.2 Summary of Hypotheses 105
4.1 Population and Sample Size 114
4.2 Deleted Items 117
4.3 Items that Used to Measure Latent Variables 118
4.4 Pilot Testing Reliability Result 124
4.5 Testing Reliability Result 129
4.6 Summary of the Methodology 133
5.1 Response Rate for The Four Companies 136
5.2 Non-Response Bias Results 137
5.3 Missing Data Statistics 139
5.4 Test of Univariate Normality 143
5.5 Test of Homogeneity of Variances 145
xx
5.6 Multicollinearity Test 146
5.7 Demographic Profiles 147
5.8 Descriptive Statistics of Measured Items of System Quality
Construct
149
5.9 Descriptive Statistics of Measured Items of Information
Quality Construct
150
5.10 Descriptive Statistics of Measured Items of Service Quality
Construct
151
5.11 Descriptive Statistics of Measured Items of Top
Management Support Construct
152
5.12 Descriptive Statistics of Measured Items of User Training
Construct
154
5.13 Descriptive Statistics of Measured Items of Computer
Self-Efficacy Construct
155
5.14 Descriptive Statistics of Measured Items of Computer
Experience Construct
156
5.15 Descriptive Statistics of Measured Items of Perceived
Usefulness Construct
158
5.16 Descriptive Statistics of Measured Items of User
Satisfaction Construct
159
5.17 Descriptive Statistics of Measured Items of Individual
Performance Impact Construct
160
5.18 Goodness-of-Fit Indexes 162
5.19 The Improved Fitness Indexes for All Constructs
Simultaneously (Initial CFA model)
164
5.20 The Improved Fitness Indexes for All Constructs
Simultaneously (Final CFA model)
168
xxi
5.21 The Confirmatory Factor Analysis ( CFA ) Report
Summary for All Constructs
169
5.22 Discriminant Validity Index Summary 172
5.23 Goodness of Fit indexes for the Proposed Structural Model 173
5.24 Estimates for the Initial Structural Model 174
5.25 Goodness of Fit Indices for the Revised Structural Model 176
5.26 Estimates for the Revised Structural Model 177
5.27 Summary of Hypotheses Testing 179
xxii
LIST OF FIGURES
2.1 The Role of Management Information Systems in Business 28
2.2 The Different Types of MIS in Yemeni Telecommunication Com-
panies 30
2.3 Theory of Reasoned Action (TRA) (Ajzen & Fishbein, 1980) 40
2.4 Social Cognitive Theory (Bandura, 1986) 42
2.5 Technology Acceptance Model (Davis et al., 1989) 44
2.6 Technology Acceptance Model 2 (TAM 2) (Venkatesh & Davis,
2000) 46
2.7 Unified Theory of Acceptance and Use of Technology (UTAUT)
(Venkatesh et al., 2003) 47
2.8 Technology Acceptance Model 3 (TAM3) (Venkatesh & Bala, 2008) 48
2.9 Technology, Organization, and Environment Framework (Tornatzky
& Fleischer, 1990) 50
2.10 End-User Computing Effectiveness Model (Igbaria, 1990) 52
2.11 Theory of Planned Behavior (Ajzen, 1991) 55
2.12 Combined TAM-TPB (Taylor & Todd, 1995) 56
2.13 Model of PC Utilization(Thompson et al., 1991) 58
2.14 Delon and Mclean IS Success Model (DeLone & McLean, 1992) 60
2.15 Updated Delone & Mclean IS Success Model (Delone & McLean,
2003) 62
2.16 Motivational Model (Davis et al., 1992) 64
2.17 Variables Determining the Rate of Adoption Innovations (Rogers,
1995) 67
xxiii
3.1 Conceptual Framework 96
4.1 Research Design 110
5.1 Initial CFA model 165
5.2 Re-Specify CFA Model 167
5.3 Initial Proposed Structural Model 175
5.4 Revised Structural Model 178
LIST OF SYMBOLS AND ABBREVIATIONS
AIS - Accounting Information Systems
AMOS - Analysis of Moment Structures
AVE - Average Variance Extracted
CE - Computer Experience
CFA - Confirmatory Factor Analysis
CFI - Comparative Fit Index
Chisq/df - Chi Square / Degrees of Freedom
CRM - Customer Relationship Management
CSCW - Computer Supported Collaborative Work
CSE - Computer Self-Efficacy
DOI - Diffusion of Innovation
DSS - Decision Support Systems
DVs - Dependent Variables
EDP - Electronic Data Processing
EIS - Executive Information Systems
EM - Expectation Maximization
ES - Expert System
ESS - Executive Support System
EUCE - End-User Computing Effectiveness
GDSS - Group Decision Support Systems
xxv
GFI - Goodness of Fit Index
GOF - Goodness of Fit
HRIS - Human Resources Information Systems
ICS - Inventory Control System
IP - Individual Performance
IPC - Information Processing Cycle
IQ - Information Quality
IS - Information Systems
IT - Information Technology
IVs - Independent Variables
KI - Kurtosis Index
KWS - Knowledge Work Systems
MI - Modification Indices
MIS - Management Information Systems
MM - Motivational Model
MPCU - Model of PC Utilization
NFI - Normed Fit Index
OAS - Office Automation Systems
OQ - Output Quality
OS - Organization Support
PEOU - Perceived Ease of Use
PU - Perceived Usefulness
RMSEA - Root Mean Square Error of Approximation
SCT - Social Cognitive Theory
SEM - Structural Equation Modeling
SerQ - Service Quality
SI - Skew Index
xxvi
SPSS - Statistical Package for the Social Sciences
SysQ - System Quality
TAM - Technology Acceptance Model
TAM2 - Technology Acceptance Model 2
TAM3 - Technology Acceptance Model 3
TLI - Tucker-Lewis Index
TMS - Top Management Support
TOE - Technology, Organization, and Environment
TPB - Theory of Planned Behavior
TPS - Transaction Processing System
TRA - Theory of Reasoned Action
US - User Satisfaction
UT - User Training
UTAUT - Unified Theory of Acceptance and Use of Technology
VIF - Variance Inflation Factors
xxvii
LIST OF APPENDICES
APPENDIX TITLE PAGE
A Application to Request Company’s Information 239
B Survey Instrument 244
C Certificate of Proofreading 251
D Assessment of Multivariate Outliers 252
E Multivariate Normality 257
F Publications Associated With The Thesis 260
CHAPTER 1
INTRODUCTION
1.1 Introduction
This chapter provides an introduction to this research. It is divided into nine sections.
Following this section, section 1.2 presents the issues related to the research back-
ground. Section 1.3 specifies the research problem. Section 1.4 identifies the research
objectives and section 1.5 determines the research questions. Section 1.6 describes
the significance of the study and section 1.7 identifies the research scope. Section 1.8
presents the definitions of the terms that are commonly used throughout this thesis.
Finally, the overall structure of thesis content is outlined in section 1.9.
1.2 Background of the Study
1.2.1 Telecommunication Industry: A Perspective
The telecommunications industry is the key enabler of productivity across economies
and societies. The telecommunications sector is not only a significant contributor to-
wards the economic activities of countries, but also towards the growth of other indus-
tries. In recent times, developing nations have witnessed significant transformations in
2
this sector due to the impact it has had on their economies. The telecommunications
sector is an interesting sector to study, not only due to its volatile nature in terms of
technological breakthrough and its policies, but also due to the high growth rate over
the past few decades and the significant contribution to the economies of these nations
(Venkatram & Zhu, 2012).
Hence, the telecommunications sector is a strategic and vital link for the citi-
zen and the public and private institutions alike. This sector has witnessed substantial
change and development during the last ten years. Its infrastructure has progressed
in recent years (AL-Subari, 2010). According to the Embassy of the Republic of
Yemen in Washington (2008) telecommunications sector was one of the most promis-
ing sectors available in Yemen for trade and investment.
The telecommunications industry in Yemen consisted of fixed-line, mobile
communications and the internet. In addition, the number of subscribers is increas-
ing at a rapid pace, which adds to the growth and importance of the industry. Table 1.1
shows the number of subscribers in the different telecommunications sectors in Yemen.
Table 1.1: Number of Subscribers in the Different Means of Telecommunications
Year
Item
2011 2012 2013
Local telephone 1,075,312 1,103,807 1,093,305
International telephone 111,085 115,240 156,294
Cellular Phone 12,349,860 13,893,265 17,423,000
Internet 810,750 857,970 1,093,492
Source: Annual Statistical Bulletin of Public Corporation for Wired, and
Wireless Telecommunications (2012)
According to Annual Statistical Bulletin of the Public Corporation for Wired,
and Wireless Telecommunications (2012), mobile communications were the most pop-
ular in Yemen. From 2005-2013, Yemen improved its mobile services as the number
3
of mobile subscribers jumped from 2,277,553 million in 2005 to 17,423,000 million in
2013. Table 1.2 shows the number of mobile subscribers from 2005-2013.
Table 1.2: The Number of Subscribers in the Cellular Network between 2005-2013
Year Subscribers
2005 2,277,553
2006 2,977,781
2007 4,348,264
2008 6,445,033
2009 8,312,773
2010 11,085,344
2011 12,349,860
2012 13,893,265
2013 17,423,000
Source: Annual Statistical Bulletin of Public Corporation for Wired, and
Wireless Telecommunications (2012)
Yemen’s mobile market has four operators: Sabafon, MTN Yemen, Y and
Yemen Mobile. Yemen Mobile provides mobile services through a CDMA network,
while the other operators use GSM technologies. Sabafon and MTN launched mobile
services in early 2001 after winning a 15 year license at a cost of USD 10 million
in mid-2000. The expansion of their network which currently covers about 60% of
the population, by a French firm, Alcatel, is continuing. In May 2004, the Ministry
of Telecommunications announced operations for a third mobile telecommunications
provider, Yemen Mobile, which was owned exclusively by the Ministry until 55% of
the company’s shares were put up for sale in mid 2006. Yemen Mobile started opera-
tions on the CDMA (code division multiple access) protocol (Embassy of the Republic
of Yemen in Washington, 2008).
4
The competition between the companies led to the expansion of mobile service
coverage to include all governorates and the diversifying of services. Competition
in service pricing increased public demand for mobile services. Table 1.3 shows the
Cellular Network Operating lines by companies: 2011 - 2013.
Table 1.3: The Cellular Network Operating Lines by companies: 2011 - 2013
Company Operating Lines Year
Yemen mobile
4,267,965 2011
4,099,352 2012
4,529,000 2013
Sabafon
3,093,502 2011
4,000,000 2012
5,421,000 2013
MTN
4,562,019 2011
4,974,903 2012
5,777,000 2013
Y
426,374 2011
819,010 2012
1,696,000 2013
Total
12,349,860 2011
13,893,265 2012
17,423,000 2013
Source: Annual Statistical Bulletin of Public Corporation for Wired, and
Wireless Telecommunications (2012)
According to Table 1.3 there is intense competition among mobile companies
in Yemen. In addition, the table indicates that the number of subscribers of mobile
companies was increasing at a rapid pace.
5
According to GSMA-Intelligence (2014) there is a recent explosion in the num-
ber of mobile subscribers in the Arab states. Unique subscriber penetration rates are
now above the global average and the region is also seeing increasing adoption of con-
nected devices. Bringing communication services to previously unconnected popula-
tions has changed the way people lived and had a key role in the social and economic
development across the region. The mobile industry already makes a significant con-
tribution to the social and economic development of the Arab states where significant
proportion of the wages, taxes or profits paid out by the industry are subsequently spent
across other sectors of the economy. This results in other economic sectors also bene-
fiting from the value generated by the mobile ecosystem. Mobile technology facilitates
productivity improvements for many workers and businesses.
According to Belhaj (2012), the telecommunications sector contributes signif-
icantly to the Yemeni economy by providing more opportunities for economic devel-
opment and plays an important role in the rapidly changing environment. In addition,
the telecommunications sector is an interesting sector in Yemen due to the high growth
rate over the past few decades. Telecommunications sector revenues alone accounted
for 13 % of Yemeni GDP.
1.2.2 Telecommunication Industry: Issues and Challenges
Organizations in the global marketplace face stiff competition to survive and sustain
their competitive advantage. In order to accomplish this, organizations must provide
a high level of quality performance to its customers. In reaction to high levels of in-
creased competition, many businesses are forced to restructure their labor-management
practices and motivate their employees to improve performance (Belhaj, 2012). Ac-
cording to Sultana et al. (2012), training is the main issue affecting employee perfor-
mance in the telecommunications sector. If organizations invest in the right type of
training, it can enhance employee performance, competency and skill. In addition,
training is a useful means of coping with new changes in technology, competition,
6
organizational structuring and most importantly it enhances employee performance.
Al-Qurashi (2010) mentioned that in the Yemeni telecommunications industry, top
management support and training are the key factors that affect employee performance.
Al Haderi (2014b) mentioned that in the context of Yemen, information quality
affects the adoption of the technology when it is useful, easy to use and when it helps
them achieve organization goals.
In addition, Odembo (2013) mentioned that employee’s satisfaction is becom-
ing more challenging for companies including those in the telecommunications sectors.
Saeed et al. (2014) indicates that the main issue in telecommunication companies is the
level of satisfaction of the employees. An organization with good management would
consider its employees its assets and the primary source of productivity and financial
gain.
In addition, Hashed et al. (2012) mentioned perceived quality, perceived value
and corporate image as important factors affecting customer satisfaction. Moreover,
Belhaj (2012) mentioned that the absenteeism of employees are one of the issues in
the telecommunications sector in Yemen where it reduces effective service capacity,
increases waiting time, waste a lot of financial resources, disturbs management and
colleagues at work and disturbs the work schedule which ultimately affects the pro-
ductivity and performance of employees in the sector.
In a nutshell, there are various issues faced by the industry especially in the
Arab countries. The following section discusses the importance of adopting manage-
ment information systems as the solution.
1.2.3 Importance of Management Information Systems in Organizations
According to Hashim et al. (2012) the management information system plays an im-
portant role as it is the life blood of an organization. According to Dinesh & Ragel
(2015) organizations are developing their own management information system for
more efficient management. Understanding the impact of management information
7
system on the performance of users is very crucial for all organizations because it can
improve organizational or individual performance.
According to Nath & Badgujar (2013) a great number of organizations could
not operate properly and successfully without the implementation of management in-
formation system. Management information systems make it possible for organiza-
tions to get the right information to the right people at the right time in the right form
by enhancing the interaction between the people’s organization. In addition manage-
ment information system allows information to move between departments instantly,
reducing the need for face-to-face communications among employees, thus increasing
the responsiveness of the organization. The role of management information system in
companies is to manage the data; organizing and retrieving of the information which
helps the organization to provide services faster; and market accurately and easily (AL-
Gharaibeh & Malkawi, 2013).
Another primary purpose of management information systems was to help an
organization achieve its goals by providing managers with insight into the regular op-
erations of the organization so that they can control, organize and plan more effectively
(Sekhar & Babu, 2012).
In the past, organizations employed the manual system for collecting, process-
ing and storing the information. However, for the last few years the organizations are
storing huge amounts of information and the structure of today’s organization manage-
ment systems are more complex. Some organizations store information of more than
one million customers, as in the case of telecommunication companies. Hence tradi-
tional methods such as the use of paper work and files to store the data are no longer
relevant. It is necessary to adopt management information systems to enable these or-
ganizations to control this huge amount of information and provide it to all managerial
levels in a timely manner as needed (Al-Hameedi et al., 2009).
8
1.3 Problem Statement
The Telecommunication sector is a significant contributor towards the economic activ-
ities of countries. In the context of Yemen, Telecommunication sector revenue alone
accounted for 13 % of Yemeni GDP. Consequently, the Telecommunication sector is
an important sector that affects the economy of Yemen (Belhaj, 2012). The main issue
faced by this sector is low level of individual performance. Consequently, the Telecom-
munication sector strongly recommended to adopts management information systems
in order to solve this issue. Management information systems is one of the most impor-
tant tools in Telecommunication organizations that used to solve this issue. Adoption
of management information systems in Yemeni Telecommunication companies plays
an imperative role for development, and when it is used to improve employee’s perfor-
mance.
Today more companies are moving from the manual systems to computerized
information systems (Rani & Singhal, 2014). According to Al-Hameedi et al. (2009)
adoption of management information systems in telecommunication companies is nec-
essary to enable these companies to control the huge amounts of information. Manage-
ment information systems enable storage and processing of all business transactions
with the overall purpose to make that information available on demand in the required
format.
There are a lot of issues that hinder the successful adoption of management
information systems and technologies in organizations. Most of the literature focused
on issues such as training, top management support, information quality, employee’s
satisfaction, customer satisfaction and absenteeism of employees (Sultana et al., 2012;
Al-Qurashi, 2010; Al-Omari, 2009; Al Haderi, 2014b; Odembo, 2013; Saeed et al.,
2014; Hashed et al., 2012; Belhaj, 2012). However, limited studies especially in the
context of Arab countries, had investigated computer self-efficacy, computer experi-
ence, system quality and service quality issues. Hence, this research focuses on tech-
nological, organizational and people factors, which is rarely mentioned in the previous
9
studies in the Arab context.
Based on discussions with some of the employees of telecommunication com-
panies in Yemen, the main problems that hinder the successful adoption of manage-
ment information systems are:
(1) The employees don’t have adequate skills and knowledge in using the sys-
tem. Lai (2009) claimed that computer self-efficacy affected successful adoption. In
addition, Al-Haderi (2013) supported that in the case of Yemen, where it was revealed
that computer self-efficacy is an important determinant to influencing the adoption of
technologies.
(2) The difficulty of learning and using the system. According to Al-Omari
(2009) ease of use and ease of learning the system leads to the acceptance of the sys-
tem.
(3) The difficulty to retrieve the information. Lee & Kozar (2006) supported the
idea that the quality of the information the system produces and delivers is considered
to be a key factor affecting management information system success.
(4) Most of the employees don’t have prior experience with using the system.
According to Sabherwal et al. (2006) computer experience enhances the system use
and affects the information systems success.
(5) The companies should provide training to their staff to improve their skill
and knowledge. Similarity Ajami & Mohammadi-Bertiani (2012) claimed that a num-
ber of information systems failed because the end-users were inadequately trained. Al-
Omari (2009) supported that in the context of telecommunication companies in Gaza,
training is one of the important factors that increase user awareness of the capabilities
of a system.
(6) Top management should provide the necessary material needed for training
and encourage and support the employees to use management information systems.
The top management should provide the required budget for continued skill training
programs. According to Chen & Hsiao (2012); Ragu-Nathan et al. (2004) top manage-
ment support gives significant impact on the adoption of technologies in organizations.
10
(7) There is a problem with the technical team which supports the department.
Most of the technical support staff doesn’t have the skills to solve complex problems.
The technical support team also needs to be trained to develop their skills and knowl-
edge. According to Gorla et al. (2010) service quality has a significant positive influ-
ence on organizational impact either directly or indirectly. Especially in the context of
mobile telecommunications, the continuance of trust using the same product range is
much dependent on customer service and values provided by the service provider.
(8) The employees sense that the system is not beneficial and are not willing to
use it. These will indeed affect the performance of the employees. Park et al. (2011)
supported that user satisfaction and perceived usefulness have a positive influence on
organizations. In addition, Choi et al. (2013); Shih (2004) supported that there is a
positive relationship between perceived usefulness and individual performance impact.
In addition, Sharabati et al. (2015); Iivari (2005); Hou (2012) supported that there is
a positive relationship between user satisfaction and individual performance impact.
Moreover Seddon & Kiew (1996) supported usefulness as an IS success measure. On
other hand, Petter et al. (2008) supported the user satisfaction as an IS success measure.
According to Moller & Chaudhry (2012) during the introduction stage of man-
agement information systems the employees still can’t experience the benefits of man-
agement information systems. This is due to apprehension. Moreover, the functions of
management information systems are not clearly understood.
Based on previous discussions, the researcher concludes that the main issues
related to management information systems adoption in Yemeni telecommunication
companies are technological issues (system quality, information quality, and service
quality), organizational issues (top management support and user training) and people
issues (computer self-efficacy and computer experience). In addition, perceived use-
fulness and user satisfaction are the important factors which affect the acceptance and
successful adoption of technology in organizations. Consequently these issues have
influence on the individual performance. The following section elaborates further on
the research questions.
11
1.4 Research Questions
Based on previous discussion, the following questions are going to be addressed by the
research:
i. What is the impact of technological factors (system quality, information qual-
ity, and service quality), organizational factors (top management support, and training),
and people factors (computer self-efficacy, and computer experience) on perceived use-
fulness?
ii. What is the impact of technological factors (system quality, information
quality, and service quality), organizational factors (top management support, and
training), and people factors (computer self-efficacy, and computer experience) and
perceived usefulness on user satisfaction?
iii. What is the impact of perceived usefulness and user satisfaction on individ-
ual performance?
1.5 Research Objectives
The objectives of this study are to develop integrated model for successful adoption of
management information systems that link three factors (technological, organizational
and people) and determine the impact of these factors on perceived usefulness and user
satisfaction. These factors subsequently impact the individual performance.
i. To determine the impact of technological factors (system quality, informa-
tion quality, and service quality), organizational factors (top management support, and
training), and people factors (computer self-efficacy, and computer experience) on per-
ceived usefulness.
ii. To determine the impact of technological factors (system quality, informa-
tion quality, and service quality), organizational factors (top management support, and
training), and people factors (computer self-efficacy, and computer experience) and
perceived usefulness on user satisfaction.
12
iii. To determine the impact of perceived usefulness and user satisfaction on
individual performance.
1.6 Significance of The Study
This study expects to contribute significant theoretical and practical contributions in the
domain of management information systems adoption in Yemen. There is a lack of re-
search in terms of the relationship between management information systems adoption
and individual performance. Based on the database of the National Information Center
in the Republic of Yemen, few studies attempt to focus on main factors that affect the
success of management information systems adoption and individual performance. In
addition, most studies that investigated the impact of management information systems
adoption in individual performance are western focused. In recognition of the need to
bridge this gap in literature, this study contributes to the existing body of knowledge
by investigating the impact of management information systems adoption and perfor-
mance among employees in the Yemeni telecommunications sector. In addition, this
study provides insight on the impact of technological, organizational and people factors
on perceived usefulness and user satisfaction among employees in Yemeni telecommu-
nication companies. On the other hand the study findings serve as lessons to be shared
by other developing countries especially among the Arabic countries.
The main theoretical contribution in this study is the adding of four constructs
(top management support, user training, computer self-efficacy and computer experi-
ence) that are rarely mentioned as independent variables in previous studies especially
in the field of information system success in the Arabian context. Another theoreti-
cal contribution of this study is the development of an integrated model that integrates
the elements of technological factors, organizational factors, and people factors affect-
ing Yemen. Investigate the impact of those factors in perceived usefulness and user
satisfaction towards enhancing the individual performance.
13
In addition, assessing the success of information systems has been identified as
one of the most critical issues in the information systems field. Several conceptual and
empirical studies have been conducted to explore this confusing yet important issue.
A huge debate continues concerning the appropriate set of variables that can be used
to determine the users’ perception of IS success. However, studies relating to this
issue within the context of Arab countries are few and lack the ability to propose an
appropriate evaluation criterion for Arab organizations (Al-Adaileh, 2009). This study
attempts to focus deeply on the factors that lead to successful adoption of management
information systems (MIS) in Yemeni telecommunication companies.
In terms of the practical significant of the study, the findings would be useful
for managers and practitioners, especially in the telecommunications sector in under-
standing the impact of management information systems adoption in individual per-
formance. Telecommunication companies in Yemen are still dealing with issues in
adopting success factors. Terms that identify the factors accurately, will have posi-
tive role on successful adoption of technology in Yemeni organizations in general. The
successful adoption of management information systems affect individual performance
(improved productivity, improved effectiveness and improved performance), thus the
revenues of these companies will increase and will have a positive role in improving
the country’s economy.
In addition, this study will also provide the management with knowledge about
the role of technological, organizational and people factors among employees. It pro-
vides the management clear reasons to pay more attention to factors which affect suc-
cessful adoption of management information systems.
Finally, the current study was conducted in one of the important sectors sup-
porting the Yemeni national economy i.e. estimated to be 13% of the Yemeni GDP
(Belhaj, 2012). Hence this research will go a long way in improving the Yemeni GDP
by focusing on effective adoption policy to overcome the problem that might affect
productivity and performance of employees in the telecommunications sector.
14
1.7 Research Scope
The study focuses on the telecommunication companies in Yemen. This study involved
all the mobile companies in Yemen namely Sabafon, Y, Spacetel Yemen (MTN) and
Yemen Mobile. This study focuses on the following departments: customer service,
information systems, accounting, finance, human resource and sales. The instrument
for collecting the data is the questionnaire. The questionnaire was distributed to end-
users (employees who use the system) of management information systems in these
companies. This study focuses on the factors that affect successful adoption of the
management information systems.
1.8 Definition of Variables
1.8.1 System Quality
System quality is the desirable characteristics of an information system, for example:
ease of use, system flexibility, system reliability and ease of learning as well as system
features of intuitiveness, sophistication, flexibility and response times (Petter et al.,
2008). This study defines system quality as "the desirable characteristics of manage-
ment information systems that measures the quality of the system performance".
1.8.2 Information Quality
Information quality is the desirable characteristics of the system outputs, for example:
relevance, understandability, accuracy, conciseness, completeness, currency, timeli-
ness, and usability (Petter et al., 2008). This study defines information quality as "the
desirable characteristics that measures the output of management information system".
15
1.8.3 Service Quality
Service quality is the quality of the support system users receive from the IS depart-
ment and IT support personnel, for example: responsiveness, accuracy, reliability,
technical competence and empathy of the personnel staff (Petter et al., 2008). Ac-
cording to Delone & McLean (2003) service quality is the overall support delivered
by the service provider. This study defines service quality as "the quality of the sup-
port that the users receive from the management information systems department and
technical support team".
1.8.4 Top Management Support
Management support is able to ensure sufficient allocation of resources and act as a
change agent to create a more conducive environment for IS success and a lack of it
is considered a critical barrier to the effective utilization of information technology
(Igbaria et al., 1997). This study defines top management support as "the extent of
top management that understands the importance of the system and is able to ensure
sufficient allocation of resources to support and encourage the end-users to use man-
agement information systems".
1.8.5 User Training
User training refers to the amount of training provided by other computer users or
computer specialists in the company, friends, consultants or educational institutions
external to the company (Igbaria et al., 1997). This study defines user training as "the
amount of internal and external training that is provided to end-users to use manage-
ment information systems".
16
1.8.6 Computer Self-Efficacy
Self-efficacy is the belief that one has the ability to perform a particular action (Igbaria
& Iivari, 1995). According to Brown (2002) self-efficacy is a measure of user’s con-
fidence in their ability to use a technology. In this study, computer self-efficacy refers
to an individual’s belief that he or she has the skills and abilities to use management
information systems to perform specific tasks.
1.8.7 Computer Experience
Computer experience is the extent of the experience in using application systems, dif-
ferent types of computer software packages, financial modeling, languages, and par-
ticipation in non-technical analysis and technical design of computerized information
systems (Igbaria & Iivari, 1995). This study defines computer experience as "the extent
of the experience in using management information systems".
1.8.8 Perceived Usefulness
Perceived usefulness is the degree to which a person believes that using a particular
system would enhance his or her job performance (Davis, 1989). This study defines
perceived usefulness as "the degree to which end-user believes that using management
information systems enables them to accomplish tasks more quickly, and makes the
job easier to do".
1.8.9 User Satisfaction
User satisfaction is the net feeling of pleasure or displeasure that results from aggregat-
ing all the benefits that a person hopes to receive from interaction with the information
system (Seddon & Kiew, 1996). This study defines user satisfaction as "individual’s
17
belief that management information systems met the needs and expectations".
1.8.10 Individual Performance Impact
Individual Performance impact relates to the accomplishment of a portfolio of tasks
by the individual. Higher performance implies some mix of improved efficiency, im-
proved effectiveness, and/or higher quality (Goodhue & Thompson, 1995). This study
defines Individual Performance impact as "the degree to which end-user believes that
using management information systems has influenced effectiveness, productivity, and
the performance to perform the work by the individual".
1.9 Organization of Thesis
This study consists of six different chapters; Chapter 1 consists of introduction, back-
ground of the study, problem statement, research questions, research objectives, sig-
nificance of the study, and definition of variables. Chapter 2 present overview of in-
formation systems, and management information systems. Moreover, discusses the
different types of management information systems that are used in the telecommu-
nication companies in Yemen. In addition, presents a review of the existing litera-
ture related to this study, as well as underlying theories related to the research topic.
Chapter 3 explains the measurements and variables that are considered in this study in-
cluding system quality, information quality, service quality, top management support,
user training, computer self-efficacy, computer experience, perceived usefulness, user
satisfaction and individual performance. It also shows the conceptual framework and
hypotheses of this study. In general, the study hypothesizes that: (1) system quality is
significantly related to perceived usefulness, (2) system quality is significantly related
to user satisfaction, (3) information quality is significantly related to perceived use-
fulness, (4) information quality is significantly related to user satisfaction, (5) service
quality is significantly related to perceived usefulness, (6) service quality is signifi-
18
cantly related to user satisfaction, (7) top management support is significantly related
to perceived usefulness, (8) top management support is significantly related to user
satisfaction, (9) user training is significantly related to perceived usefulness, (10) user
training is significantly related to user satisfaction, (11) computer self-efficacy is sig-
nificantly related to perceived usefulness, (12) computer self-efficacy is significantly
related to user satisfaction, (13) computer experience is significantly related to per-
ceived usefulness, (14) computer experience is significantly related to user satisfaction,
(15) perceived usefulness is significantly related to user satisfaction, (16) perceived
usefulness is significantly related to individual performance, (17) user satisfaction is
significantly related to individual performance. Chapter 4 explains the methodology
used to achieve the research objectives. In addition, this chapter highlighted detailed
explanations on research methods which consists of introduction, research purpose,
research design, research population/sample, data collection method, survey, instru-
ment design, data analysis method (Quantitative Method), reliability, validity, ethical
considerations and summary of the chapter. Chapter 5 reports the data analysis and re-
sults of the study. Finally, Chapter 6 presents the discussion, theoretical and practical
implications, limitations of the study, directions for future research and conclusion.
CHAPTER 2
LITERATURE REVIEW
2.1 Introduction
This chapter is organized into five sections. Following this section, section 2.2 de-
scribes the information systems. Section 2.3 describes the management of information
systems and the types of management information systems in Yemeni telecommunica-
tion companies. Section 2.4 clarifies the theories in the field of successful adoption of
information systems. Finally the chapter is summarized in section 2.5.
2.2 Information Systems
2.2.1 Overview of Information Systems
Information systems (IS) have been incorporated in companies since the appearance
of the first computer as an important and powerful tool to optimize and improve man-
agement activities. They have progressively advanced due to systems evolution and
advances in technology. The first application of information systems in companies
was made in the 1960’s in the accountant management area. As soon as accounting
software appeared, there was the necessity to manage the administration area using
20
information systems too. So several information systems were developed to manage
invoices, to pay bills, to collect revenue and others. After that, the development of soft-
ware for companies concentrated efforts toward the research and development of stock
management systems such as the ICS (Inventory Control System). Once again, the in-
tegration of these systems with the information application in the company (accounting
and administration systems) was revealed as a very important factor in process opti-
mization (Gil Gómez et al., 2010).
According to O’Brien & Marakas (2007) the business applications of infor-
mation systems have expanded significantly over the years. Until the 1960s, the role
of most information systems was simple: transaction processing, record keeping, ac-
counting, and other electronic data processing (EDP) applications. Then another role
was added, namely the processing of all these data into useful, informative reports.
Thus, the concept of management information systems (MIS) was born. This new role
focused on developing business applications that provided managerial end users with
predefined management reports that would give managers the information they needed
for decision-making purposes. By the 1970s, it was evident that the pre-specified in-
formation products produced by such management information systems were not ade-
quately meeting the decision making needs of management, so the concept of decision
support systems (DSS) was born. After that, most top corporate executives did not
directly use either the reports of management information systems or the analytical
modeling capabilities of decision support systems, so the concept of executive infor-
mation systems (EIS) developed. Then, other types of information systems were de-
veloped such as expert systems, strategic information systems and enterprise resource
planning.
Every business organization in this era needs an information system (IS) to
keep track of all business activities, from business planning until product delivery via
manufacturing and quality cycles (Nowduri & Al-Dossary, 2012).
According to O’Brien & Marakas (2007) information system (IS) can be any
organized combination of people, hardware, software, communications networks, data
21
resources, policies and procedures that stores, retrieves, transforms and disseminates
information in an organization. People rely on modern information systems to com-
municate with one another using a variety of physical devices (hardware), informa-
tion processing instructions and procedures (software), communications channels (net-
works) and stored data (data resources). According to Patterson (2005) an information
system was a group of interrelated components that worked to carry out input, process-
ing, storage, output and control actions in order to convert data into information that
can be used to support forecasting, planning, control, coordination, decision making
and operational activities in an organization. According to Shim (2000) an information
system was a computerized system that processed data (facts) and produced informa-
tion. This process is defined as an information processing cycle (IPC). The information
processing cycle consists of four operations. They are input, process, output and stor-
age.
According to Laudon & Laudon (2006) information system can be defined
technically as a set of interrelated components that collect (or retrieve), process, store,
and distribute information to support decision making, coordination and control in an
organization. In addition to supporting decision making, coordination and control; in-
formation systems may also help managers and workers analyze problems, visualize
complex subjects and create new products.
In summary, the applications of information systems in business have expanded
significantly over the years. Every business today needs information systems to keep
track of its business activities. Information systems can be defined as a set of inter-
related components that collect, process, store and distribute the information in the
organization to support all the business activities.
2.2.2 Types of Information Systems
According to Nath & Badgujar (2013) for the last twenty years, different kinds of in-
formation systems were developed for different purposes depending on the need of
22
the business. Transaction Processing systems (TPS) functions at the operational level
to process large amounts of data for routine business transactions. Office automation
systems (OAS) support data workers and knowledge work systems (KWS) support
professional workers. Higher-level systems include management information systems
(MIS) and decision support systems (DSS). Expert system (ES) applies the expertise
of decision makers to solve specific, unstructured problems. At the strategic level
of management, there is executive support system (ESS). Group decision support sys-
tems (GDSS) and the more generally described computer supported collaborative work
(CSCW) systems aid group level decision making of a semi structured or unstructured
decision.
According to Patterson (2005) there were several categories of information sys-
tem such as data processing systems, management information systems, decision sup-
port systems and executive information system.
According to O’Brien & Marakas (2007) the applications of information sys-
tems that are implemented in today’s business world can be classified in several differ-
ent ways. For example, several types of information systems can be classified as either
operations (support of business operation) or management information systems (sup-
port of managerial decision making); support of business operation such as transaction
processing systems, process control systems and enterprise collaboration systems (of-
fice automation system); support of managerial decision making such as management
information system, decision support system and executive information systems.
This study attempts to focus on the system that is responsible for collecting
the data, processing, storing the information and dissemination the information in a
useful form (as reports) to support the management activities. So this study chooses
the management information systems. Management information systems (MIS) use
the data collected by the TPS to provide supervisors with the necessary control reports
(Belle et al., 2001). Moreover, management information systems are responsible for
the collection, processing, storage, and dissemination of information in the organiza-
tion for the purpose of supporting the management operations and improve individual
23
performance. In addition management information systems are a popular system used
in Yemeni organizations to support all the management activities.
2.3 Management Information Systems (MIS)
2.3.1 The Concept of MIS
The term management information systems consist of three parts. To understand the
meaning of this term we must understand what’s the meaning of management, infor-
mation and systems. It is better to understand each part of the term.
Management is comprised of the processes or activities that describe what man-
agers do in the operation of their organization: plan, organize, coordinate and control
operations (Shim, 2000). Al-Najjar (2010) defines management as achieving organiza-
tional goals efficiently and effectively through planning, organizing, directing and con-
trolling organizational resources. It is the ability to achieve the goals through others.
Weihrich (2000) defines management as the process of designing and maintaining an
environment in which individuals, working together in groups, accomplish efficiently
selected aims.
The word data is the plural of datum, though data commonly represents both
singular and plural forms. Data are raw facts or observations, typically about phys-
ical phenomena or business transactions. Data is raw unprocessed facts and figures
that have no context or purposeful meaning and information is processed data that has
meaning and is presented in a context (Patterson, 2005). Data can take many forms,
including traditional alphanumeric data, composed of numbers and alphabetical and
other characters that describe business transactions and other events and entities. Text
data, consisting of sentences and paragraphs used in written communications; image
data, such as graphic shapes and figures; and audio data, the human voice and other
sounds, are also important forms of data. According to Shim (2000) data are usu-
ally the input of a management information system. After data are processed by the
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management information system, information will be generated. Users can then use
information for decision making. Data is normally organized into files, and files are
organized into databases. Users can retrieve data as the input of application software
and produce information as output. According to Hardcastle (2011) data is a raw fact
and can take the form of a number or statement such as a date or a measurement.
Information is generated through the transformation of data.
According to O’Brien & Marakas (2007) information is data that has been con-
verted into a meaningful and useful context for specific end users. According to Ra-
machandra & Srinivas (2012) information is the data that is processed in a form which
helps the management to make decisions i.e. it is the data that have been put into a
meaningful and useful context and communicated to a recipient who uses it to make
decisions. The relation of data to information is that of raw material to finished product.
The word information is a processed data, useful or relevant data, data with surprise
value, data which is useful in the decision making process. According to Shim (2000)
information is a collection of facts organized or processed in such a way that they have
additional value for further use. Information is valuable and useful because it can help
decision makers.
Moreover, the system can be defined as a set of elements joined together to
achieve common objectives i.e. group of elements organized with a purpose. The
systems often have multiple goals. The system utilizes computer hardware and soft-
ware, manual procedures, management and decision models and database. A system is
made up of sub-system, which may be composed of further sub-systems. Sub-systems
send and receive data from each other (Ramachandra & Srinivas, 2012). According
to O’Brien & Marakas (2007) a system is a set of interrelated components, with a
clearly defined boundary, working together to achieve a common set of objectives by
accepting inputs and producing outputs in an organized transformation process. Many
examples of systems can be found in the physical and biological sciences, in modern
technology and in human society. According to Belle et al. (2001) a system is an or-
ganized assembly of components with special relationships between the components.
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