International Review of Management and

Marketing
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International Review of Management and Marketing, 2018, 8(1), 93-97.

Comparison of Management Information System and Decision

Support System and Its Role in the Decision-making Process of
Managers of Economic Affairs and Finance of Zahedan

Abdolali Keshtegar1*, Nadia Vakili2

Department of Human Resource Management, University of Sistan and Baluchestan, Zahedan, Iran, 2Department of Management,
1

University of Sistan and Baluchestan, Zahedan, Iran. *Email: alikestegar@[Link]

ABSTRACT
Nowadays, the variety of information systems and their advantages are sometimes accompanied by common and interfering concepts and goals. This
variety and dispersion have created complexity and instability in decision-making of organizations mangers and information technology development
plans. Overall to solve this complexity, information systems are defined in two broad classes: Specific connection with the operational field and in
general connection with the operational field. Management information system (MIS) and decision support system (DSS) systems are among the systems
in general connection with the operational field, each of which plays a decisive role in the organizational hierarchy and decision-making process of
the mangers. MIS system brings about the information needed to manage an organization, and DSS provides data, models, and analysis tools to help
adopt decisions in non-routine cases in the organization. After discussion on decision-making process based on each concept, this study described its
characteristics, relationships, and communication of each concept for the decision-making process. The results of regression analysis of data from 20
questionnaires received from the managers of Economic Affairs and Finance in Zahedan showed that MIS and DSS have a significant relationship with
the decision-making process of managers and that rational decision-making process as the intermediary variable inferred and explained this effect.
Keywords: Management Information System, Decision Support System, Managers, Decision-making Process
JEL Classifications: D8, L1

1. INTRODUCTION were identified, and many organizations moved towards a

processor’s perspective to create a value-added loop. Thus, the use
Traditionally, organizations have been divided and organized of information systems to develop and improve communication,
independent from each other based on operational or functional decision-making and control of all processes inside and outside
bases. The structure of most of these is designed based on the organization found a critical state and role.
independent and differentiated attitudes, so that all agents of the
organization are focused on the work and expertise and experience 1.1. Problem Statement
in each of the autonomous and independent departments Studies in the field of IT management can be divided into two
(Mostajeran, 2008). Unfortunately, organization based on tasks major groups: (1) Studies dealing with the system’s nature and (2)
sometimes strengthens the look and attention to the inside of the studies and on the effect of the information and support system
organization, which leads to limited execution and limited task on the rational decision-making process and the factors affecting
operations. This inner look pays the most attention to occasions it (Olson and Davis, 2015). Studies on the first group are many
within the task areas and reduces the coordination between task with good results obtained, but studies on the rational decision-
areas and pays less attention to increases customer value. With making process and the factors affecting it, while being limited
the development of information technology (IT) and its role in have often find yielded contradictory results (Laudon&Kenneth,
the economic and commercial development of organizations, the 2009). Papadakis et al. believe that in spite of numerous studies,
losses of independent and non-continuous, task-oriented structures our knowledge of the rational decision-making process is truly

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 Keshtegar and Vakili: Comparison of Management Information System and Decision Support System and Its Role in the Decision-making Process of Managers of
Economic Affairs and Finance of Zahedan

limited. This sample of results and discussions reflects the fact that information is one of the purposes of each information system
past studies in the area of strategic decision-making process have (Dean & Sharfman, 1996).
not obtained an acceptable and vivid viewpoint, so selecting the
proper decision-making process considering its effective factors An information system should provide an exception-based report
to reach the goals of the organization are not well-known for to the management. Managers are not interested in knowing
managers (Archer, 1980). One of the factors probably effective in hundreds of activities done satisfactorily, but they are interested
selecting the type of decision-making process for managers is the in knowing the factors out of control or are soon out of control.
comparison between the management information system (MIS) When we consider the unlimited power of a computer in producing
and decision support system (DSS) and its effect on managers’ reports that lack meaningful content, the importance of the
decision-making. exception-based report becomes clear (Christen et al, 1982).

1.2. Research Questions The need for speed in decision-making has increased nowadays
Given discussions cited in previous studies and the above as common data has increased too much. On the other hand,
questions, the questions of this study are as follows: decision-making environments have become more complex, and
• Are MIS and DSS effective in decision making? due to increased competitive pressure, decision-making becomes
• Does the rational decision-making process affect the quality more difficult. Human mind constraints on data processing and
of decision? access to limited information and knowledge of individuals have
• Does the decision-making process interfere with the set us at disadvantage, and if we use multiple experts to solve these
comparison of MIS and DSS as an intervening variable? problems, it will be so costly. Moreover, it will be difficult to establish
coordination and communication between people. Studies have
1.3. Research Goals indicated that designing a computer-based DSS can facilitate real-
The goals of this study are: life decisions. It can also improve the quality of decisions and the
A. Helping bridge the gap between existing studies in this case efficiency and effectiveness of the decision-making processes. Now,
B. Determining the probable relationship between MIS and DSS consider a bank that lends money to its customers. The customer goes
in this regard. to the bank and applies for a loan in order to buy a house. The bank
employee collects information on how much loan will be given to the
1.4. The Significance and Advantages of the Study client under what circumstances. Information that is being compiled
Based on the results of previous studies, it is concluded that: consists of customer employment status, income, history of loans
• AS some studies on the effect of manager’s characteristics and other economic information. As the loan is to buy a house, the
on the choice of the decision-making process in Economic clerk also collects a database of property. This information includes
Affairs and Finance (EAF) have reached contradictory results, the legal description and market value of the appraisal. The bank also
the results of this study can help to bridge the gap between considers the status of the real estate market, including interest rates
these studies. provided by other financial institutions. Finally, the bank considers
• The results of this study can help better understand the effect its own economic situation, such as knowing how much money is
of managerial characteristics on selecting the decision process available to give loans, how much loans have recently been adopted,
and its effect on decision quality in EAF. and how it has been with the same customers.
• It appears that for the first time that this study examines the
role of rational decision-making as an intervening variable A DSS can enable an employee make an informed decision based
between MIS and DSS. on data collected from external or internal sources (Feizi and
Moghaddasi, 2010).
1.5. Research Realm
This study is limited to EAF Organization in Zahedan. This study Three points are deduced from previous studies on the organization
compared MIS, DSS, and its effect on decision-making of mangers. management:
A. All decisions of the managers of organizations are based on
1.6. Review of Literature information.
The degree to which a system works well depends on many factors B. Information and support systems such as capital, individuals,
such as the use type, equipment, technical capabilities of the human equipment, machinery, and so on are considered as
resources, the support of the high manager of the organization and organizational resources.
its previous experiences (Donnelly et al, 1998). C. If information is optimized, analyzed, and then transmitted it
will contribute to proper decisions and golden opportunities
Nonetheless, the following capabilities can be considered as for the growth, development and survival of the organization.
desirable features of the more widely accepted information systems
by users of MISs. They should provide accurate information 1.7. Theoretical Framework
to decision makers in a timely manner. The timeliness of the The most important variable for this study is the quality of
information is something that should be specified by the user. decision, which is a dependent variable. Given the results of
Accurate information is not provided when needed; it might examining previous studies and the questions raised in this study,
lose its use or be of little use. This may seem obvious it is often the theoretical framework of the study is described in Figure 1.
neglected, though. Thus, the timely and accurate presentation of The model is of a quantitative nature: (1) The effect of information

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 Keshtegar and Vakili: Comparison of Management Information System and Decision Support System and Its Role in the Decision-making Process of Managers of
Economic Affairs and Finance of Zahedan

Figure 1: Theoretical framework of the study A. Student presence in this area

Decision Quality of
B. Considering the complexity and specific problems of this
Information
Support system
decision type of study, selecting one geographic region can help to
System y
z
track and receive responses. In order to encourage managers
x
to participate in this preliminary research for the selection of
20 organizations were sent and asked to add to the value of
the findings of this company by participating in this study and
system on decision making, (2) the effect of the support system on cooperating with them.
decision making, and (3) the role of the rational decision-making
process in the relationship between the comparison of the 2.3. Data Collection Tools
information system and the support system. Turning to the introductory letter, 20 questionnaires were sent
to the relevant organization. In order to explain the keywords
1.8. Research Hypotheses and how to answer the questions, the managers were asked to
Hypothesis 1: MIS has a negative or inverse effect on decision- initially insert the last strategic decision of the organization
making. that took place in the last 24 months at the place specified in
Hypothesis 2: DSS has a positive effect on decision-making. the questionnaire.
Hypothesis 3: The rational decision-making process is involved
in the relationship between the comparison of information 2.4. Analysis
system and the support system. To collect information and data needed for this study, the
participants were asked to identify and provide answers to the
2. METHODS questions contained in the questionnaire, based on what was
actually done in the last strategic decision. Thus, the analytical
Various researchers have used several methods for conducting unit in this study was formed of individual responses or, in other
such studies, which are mainly laboratory methods, case study, words, the decision as the risk level of managers varies from person
scenario study, and field study. to person and thus cannot be related to the analytical unit to the
decision team or organization (Sarfizadeh., 2009).
Based on my theory of carlisle (1979), the laboratory method is
not suitable for studying the effect of manager’s characteristics 2.5. Designing the Questionnaire
and characteristics on the strategic decision-making process, The questions of the questionnaire were divided into four distinct
especially in large and complex organizations. Case studies are parts: (1) The effect of the information system, (2) The extent
limited to a specific case or subject research and not suitable for of effect of the support system, (3) the quality of the decision of
these studies unless many cases are studied, which itself requires a the managers, and (4) the general information of the managers.
considerable amount of time and money. Eisenhardt and Bourgeois Researchers recommend that as much as possible questionnaires
(1988) argue two unrealistic stages in the case study that can lead of the previous studies be used. Considering this and to contribute
to a deviation of the data from the truth. First, the author should to the creation and increase of the questions of this kind of
prepare a specific situation based on his own understanding in the research, a number of questions were prepared from previous
form of a case, and that the researcher must study this and judge it questionnaires and specific numbers for this study. All questions
according to his perception, both of which can lead to evaluation were ranked on a numerical scale using five-option Likert. Dean
of the unrealistic data so unfavorable results. Scenario method, in and sharfman(1996) considered five-point scale appropriated and
which the questions are based on a fictitious or artificial subject, recommended it.
is not a suitable method for research related to strategic decisions
and can divert the outcome of the studies from reality. Given the 2.6. Questionnaire Test
aforementioned points, field study was used in this study. Thus, For studying the validity of the questionnaire and ensuring the
what has been investigated and analyzed is the true processes of clarity of the questions, their appropriateness, elimination of
decision-making in the real environment of the organization, rather vague questions, and improving the form and content of the
than hypothetical decisions or artificial and fictitious environments. questionnaire, which ultimately leads to better understanding
and analysis of the data, besides using standard questionnaires,
2.1. Population and Sample the views of the professors and experts (other than the final
The population of the study was 100 mangers of EAF Organization sample) were received on the regulatory questionnaire and
in Zahedan. We consider 20 managers and experts in the field of appropriate decisions were made according to their rational
IT as the sample. suggestions. In order to ensure the reliability of the corrected
questionnaire, the Cronbach reliability of the questionnaire
2.2. Sampling Method was determined using SPSS. The obtained Cronbach Alpha
The sampling method was random, so that all managers and for the effect of information system on the decision was
experts of the organization of AEF Organization were randomly 86%, for the questionnaire of the effectiveness of the support
sampled in proportion to their volume. Instead of expanding the system 87%, for the quality of the decision 76%, and for the
population, all AEF organizations of the country were limited to whole questions 81%, which showed a high reliability for
Zahedan population given the following reasons. the questionnaire.

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 Keshtegar and Vakili: Comparison of Management Information System and Decision Support System and Its Role in the Decision-making Process of Managers of
Economic Affairs and Finance of Zahedan

3. RESULTS that there is a significant and negative correlation between the

effect of information system and the quality of decision-making
3.1. Demographic Features (−0.04, P < 0.05) and there is a significant and direct relationship
From among the participants, 78% were male and 22% were between the effect of the support system and the quality of the
women. The average age of respondents was 35 years and 85% decision (r = 0.145, **P < 0.1).
of respondents were married. The majority of the managers
participating in the study had a bachelor’s and higher degrees 3.4. Regression Analysis
(88%) and their years of service were 15 years. Regression analysis was used to specify and determine the effect
of information system on the rational decision-making process,
3.2. Descriptive Statistics and how much the use of support system affects the quality of
Table 1 specifies minimum, maximum, mean, and standard deviations the decision.
of the variables. The mean of variables was 1.4–2.6 indicating the
normality of the data and the standard deviations of the variables As shown in Table 3, the effect of the information system on the
represent the acceptable variations in them that specify the interaction use of the rational decision-making process is not reverse. In
between the variables. Thus, it is concluded that the research data is other words, the information system affects their desire to use the
suitable for analysis and no unusual cases are seen between them. rational process in decision making. The Table 3 also shows that
the rational decision-making process can significantly improve the
3.3. Testing Hypotheses: Correlation Analysis quality of the decision, so this variable, rational decision-making
Correlation analysis was used to create a general and preliminary process, has a direct effect on the quality of the decision.
image of the relationship between research variables. According
to the results of the analysis presented in Table 2, it is clear 3.5. Analysis of Ladder or Hierarchical Regression
Hypothesis 3 implies the rational decision-making process involved
Table 1: Descriptive statistics in describing the relationship between the comparison of the
Variables N Min Max Sum Mean±SD information system and the support system. To test this hypothesis,
The effect of 15 1.00 5.00 100.518 2.0443±0.3044 as suggested by researchers Astley et al. (1982) hierarchical or
information ladder regression was used. Based on the theory by Baron and
system X Kenny (1986), when the effect of an intermediary or intermediate
The effect of 15 1.00 4.33 98.077 1.3547±0.1108 variable between independent and dependent variables can be
support system Y examined and tested to satisfy the following conditions:
Quality of 15 1.44 5.00 160.118 2.5933±0.2720 A. The independent variable should affect the intermediary
decision Z variable.
SD: Standard deviation B. The independent variable should affect the dependent variable.
C. The intermediary variable should affect the dependent
Table 2: Correlation coefficient between variables variable.
Variables X Y Z
The effect of information The results of the hierarchical regression in Table 4 show that the
system X rational decision-making process can significantly influence the
Pearson correlation 1.000 −0.04* −0.101** effectiveness of the information system and the support system
The effect of support variables on the dependent variable, i.e., it can conceptualize and
system Y describe the effect between these variables. This description or
Pearson correlation −0.04* 1.000 0.145** intervention implies that improving the quality of the decision is
Quality of decision Z
more likely to happen when the manager uses the rational process
Pearson correlation −0.101** 0.145** 1.000
in his decisions (ΔR = 0.139–0.110 = 0.029).

Table 3: Regression analysis 4. CONCLUSION AND IMPLICATIONS

Variables The effect of support Quality of
system Y decision Z This study obtained some expected and some unexpected results
The effect of 0.4* −0.101** in analysis. The overview of the responses, attributes, and
information system X characteristics of the participating organization (EAF) in this
Quality of decision Z 0.145** ‑ study showed that the organizations (administration), information

Table 4: Ladder analysis: The effect of intermediary variable

Variables Equation 1 Equation 2 R2 change Effect
Quality of decision Quality of decision
The effect of information system X −0.101** ‑ ‑ ‑
Quality of decision and impact of information system X ‑ 0.169* ‑ ‑
R2 0.110 0.139 0.029 Effective
**Significant at the 0.01 level. *Significant at the 0.05 level

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 Keshtegar and Vakili: Comparison of Management Information System and Decision Support System and Its Role in the Decision-making Process of Managers of
Economic Affairs and Finance of Zahedan

and support system play a decisive role in deciding rather than Managers with a long history are not interest in using the support
small organizations. Perhaps it is because large and medium system and information system so much, so in cases when the issue
size organizations have sufficient resources (labor, money, is important because of the importance of the issue, it is better for
equipment, etc.) to further explore and implement the various decision team members to be selected from young managers. This
stages of the rational process. On the other hand, managers in large is because the more the managers use the process of information
organizations usually have a recruitment status, so they consider system and support in the organizations, the better the quality of
themselves responsible and accountable to the government, the decisions will be.
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