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The impact of strategic planning on the use of electronic information system: empirical evidence from Jordanian banks
Mahmoud Eial Awwad1, Bello, Bunyamin2, Md. Faruk Abdullah3.
Recently, the banking sector has been facing many challenges because of rapid and
continuous changes in technological developments. Due to these daunting challenges, the
traditional management of operations and ways were incapable of making the banks
competitive, which requires them to use the modern administrative methods available.
However, strategic planning is able to increase the competitiveness of banks and improve their
performance. Environment strategic analysis clearly affects many factors in banking business
which in particular affects the functioning of electronic information system. Despite these
evidences, however, the connection between strategic planning and electronic information
system has not received enough attention especially from Jordanian banks. Hence, this study
aimed to examine the impact of strategic planning on electronic information system in banks
in Jordan. Therefore, a sample of 491 employees from six banks was used in the survey using
simple random sampling technique. The items of the constructs that achieved satisfactory
points after tests of reliability by Cronbach alpha, KMO from EFA, fit indices through CFA
using software such as SPSS and AMOS for the analysis were thus carried forward to the
Structural Equation Modelling. The results from the SEM supported the hypotheses raised and
revealed that strategic flexibility, strategic direction clarity, and senior management support
have a positive direct effect on electronic information system in banks in Jordan. Conclusively,
the findings show that the higher the organization's ability to adapt to the fundamental changes
occurring within or outside the organization, or define a clear framework for the organization
in terms of its mission, vision, goals and core values, or the conviction of the senior
management of the philosophy of management, the greater its ability to use and apply
procedures, tools and material means, in the information system more efficiently.
Affiliation:
- Universiti Sultan Zainal Abidin, Malaysia
- Universiti Sultan Zainal Abidin, Malaysia
- Universiti Sultan Zainal Abidin, Malaysia
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