Intelligent Information Systems and Firm Performance: Examining the Mediating Effect of Data Analytics Capability

Abstract

The present research examines the moderating effect of data analytics capability (DAC) between the relationship of intelligent information systems (IIS) and firm performance (FP). The study takes place in the manufacturing sector in the Kingdom of Jordan with the objective to gain insights into the relationship between digital intelligence infrastructure and the organizational outcomes. Direct and indirect effects were explored, and DAC is important as a mediator between IIS and FP. In the study purposive sampling was used as sampling technique. The study involved 391 respondents comprising employees from manufacturing companies directly engaged in the operational and managerial processes of the businesses. Data were analyzed by structural equation modelling (SEM) which was used to explore the direct and indirect relationships in the research model. The results indicate that IIS have positive significant effects on DAC and FP. In addition, there is a strong positive association between DAC and FP, and a moderate effect of DAC on the association between IIS and FP. Overall, this research confirms previous studies that show that IIS provide an organization with benefits both directly and indirectly by improving analytical abilities. The development of DAC is key to making the investments in digital systems tangible and sustainable for the organization. The novelty of this research is the empirical context, as manufacturing companies in Jordan were selected for analysis regarding their use of intelligent systems and how they influence the level of their performance through their analytical capabilities. The significance of data-driven decision-making is essential for sustaining competitive advantage and business growth in digitally evolving environments.