The Effect of Management Information System on Organizational Performance: The Case of Commercial Bank of Ethiopia, Jimma City Branches and District Office

Abstract

The main aim of this study was to examine the effects of Management information system on the organizational performance of CBE, Jimma city branches and district office. This study was conducted based on the effects of MIS on organizational performance of CBE by using MIS indicators such as; system quality, information quality, service quality, intension to use (use), user satisfaction, and net benefit and organizational performance is measured by the BSC model which includes financial perspectives, customer perspectives, internal operation, and employees learning and growth. The descriptive and explanatory research design was used and analyzed quantitatively by SPSS (V23) software. All (15) Branches and (1) district office of CBE were used to take an adequate sample size; and from the total of 423 employees, 205 employees selected by Yamane's (1967) formula through systematic sampling method. The study used both Primary and secondary sources of data, Primary data was collected through questionnaire based on a 5point Likert scale that range from strongly disagree to strongly agree. And secondary data were collected through review 0f related documents. Descriptive and inferential analyses such as standard deviation, mean, Pearson correlation and linear regression analysis were used to analyze the data. All MIS indicators have a positive and strong effect on organizational performance of CBE, Jimma town at α =0.05 and the developed hypothesis confirmed that MIS has an effect on organizationalperformance. Further, system quality, net benefit, and information quality were found to have a high significant effect on organization performance of CBE, Jimma town at a p-value of .0001 while the left of three variables intension to use, user satisfaction and service quality has an effect on organizational performance of CBE, Jimma town. Based on the research result it is recommended for CBE, Jimma town should available effective MIS system, hire skilled man power and provide training on MIS system users, providing material and human resources supporting MIS and monitor the overall performance of MIS system routinely