Mediating role of Marketing Information Systems Effectiveness on the relationship between Marketing Information Systems (MkIS) and the Business Performance in Sri Lankan Manufacturing Companies

Abstract

In the midst of global competition and a turbulent business environment, the survival of businesses is possible if and only if the business organizations harness their business opportunities by optimizing and matching their core competencies with such opportunities. In this hypercompetitive world, in the race for sustainable competitive advantage, knowledge enriched, strategically oriented Marketing Information Systems (MkIS) embedded with marketing intelligence, enable marketing decision makers to gain an unmatched competitive advantage.

However, MkIS effectiveness is a rarely examined complex construct, and the research effort in this direction has been sporadic and whether MkIS effectiveness leads to improved business performance has rarely been effectively investigated globally.

Hence, the objective of the present research is to investigate the degree of adoption of MkIS, to discover the effectiveness of MkIS, to find the managerial and organizational factors that affect the adoption of MkIS and to investigate whether there is a positive correlation between such adoption of MkIS and Business Performance mediated by MkIS effectiveness in Sri Lankan manufacturing companies.

In this regard, the empirical research conducted by the present researcher in 40 Sri Lankan manufacturing companies, triangulated with the in-depth interviews with marketing Executives revealed, that MkIS adoption (ADP) is in its infancy in Sri Lankan manufacturing Companies (t value =-13.626, significance 2 tailed = 0.000).

The research surprisingly revealed that Sri Lankan Manufacturing companies, embraced Learning Organizations (LO) together with marketing managers’ MkIS related ICT knowledge (EDU) have the strongest, 50 %, influence on Adoption of MkIS (ADP) (ADP = .425 * LO + .567 * EDU – 1.937, 50%, of variance, R2=0.504), especially through embedded systems and continuous learning, innovatively through “meta noia” – a fundamental shift of the mind, and through the fifth discipline – the conceptual frame work of LO – (systems thinking), creating improved innovative products and fulfilling the customers’ ultimate expectations.

The findings strengthen the body of knowledge about the positive relation between the adoption of MkIS and business performance, mediated by the MkIS effectiveness, by weakening the traditional belief of the “IT paradox” of Sri Lankan Manufacturers.

Keywords: Marketing Information Systems (MkIS), MkIS Effectiveness, Business Performance, Manufacturing companies, Sri Lanka