Unravelling the integrated information systems and management control paradox: enhancing dynamic capability through business intelligence

Abstract

The purpose of this study is to examine whether the interactive effects of integrated information systems (IIS) and business intelligence (BI)-enabled management control system (MCS) lead to the assimilation of integrated management control information into business processes and whether this assimilation enhances organisational performance. Data were gathered through a large survey and included 419 senior and middle managers representing 347 Australian organisations. The respondents were from organisations that use a single international vendor’s BI software designed to provide integrated MCS capability. As hypothesised, the results confirm the positive influence of the interaction between IIS and BI-enabled MCS on assimilation of integrated management control information at the business process level, the positive relationship between business process level assimilation and business process performance, and finally the positive relationship between business process performance and overall organisational performance. The results also show that the interaction term has a significant indirect relationship with business process improvement and organisational performance.