The Impact of Management Information Systems on Decision-Making in Saudi Telecom Sector

The objective of the study is to explore the impact of MIS on the process of decision-making in the telecommunications sector of Saudi Arabia and to determine whether decision-making is influenced by factors such as data, hardware, software and organizational skills. The study focuses on the telecommunication sector represented by STC, Mobily and Zain in Saudi Arabia. The primary data collected from 171 employees of the three companies in Qassim region has been analyzed using descriptive statistics, correlation analysis, multiple regression, and factor analysis. The study has achieved many objectives, most importantly, the validation of all hypotheses of research, thus, that use of information systems (Data, Devices, Software, Organizational Skills) positively affects the decision-making process. Correlation coefficients of all independent variables with the dependent variable range between 0.62-0.84 with statistically significance. Total variance explained by the four factors in Factor analysis is about 85% which is quite high. According to the regression result, Data has the highest impact on Decision Making with the relative coefficient size of 0.61, followed by Organizational Skills at 0.35. Software is the third most important factor. However, the Devices variable is statistically insignificant.

The study also reveals that most respondents are cognizant of the importance, advantages and benefits of applying management information systems in these companies. In addition, the study finds that the application of management information systems leads to efficient and effective decision-making in communications companies. Based on the results, it is recommended that companies should take interest in development of information systems by using the latest equipment and advanced programs. The study also recommends the need for flexibility in the flow and exchange of information between management levels and ensuring access to information for all staff. Another recommendation is that telecom companies should develop organizational skills of their staff to ensure the effectiveness of information systems in making decisions.