The Impact of mis on organizational p

Research Report By:

Abd-e-Munaf Kalimee (20232-33437)
Amaan Habib (20232-33497)
 Abstract

The study focuses on the impact of Management Information Systems (MIS) on organizational
execution within the oil and gas division, with a particular accentuation on Pak-Arab Refinery
Limited (PARCO). The investigate included moral contemplations and information collection from
298 respondents. Through descriptive measurements and hypothesis testing, the think about looks at
the impact of different autonomous factors, such as framework data quality, organizational authority,
client fulfillment, user training, organization service quality, and net benefit, on organizational
performance. The discoveries uncover noteworthy positive impacts of organization leadership, user
training, organization service quality, and net benefit on organizational performance. In any case, the
affect of system information quality on organizational execution was not bolstered by the information.
The think about gives experiences for supervisors to move forward organizational performance
through compelling MIS execution, whereas recognizing impediments and recommending zones for
future investigate.

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Contents
1. Introduction.......................................................................................................................................4
1.1 Background of the Study:............................................................................................................4
1.2 Statement of Problem:................................................................................................................5
1.3 Research Gaps & Contributions...................................................................................................5
1.4 Research Questions:....................................................................................................................5
1.5 Objectives of Study:.....................................................................................................................5
1.6 Significance of Study:...................................................................................................................6
1.7 Limitation of Study:.....................................................................................................................6
1.8 Scope of the Study:......................................................................................................................6
1.9 Assumptions:...............................................................................................................................6
2 Literature Review...............................................................................................................................7
2.1 Management Information Systems.............................................................................................7
2.1.1 Definition and Components......................................................................................................7
2.1.2 Types of MIS.............................................................................................................................7
2.2 Organizational Performance in the Oil and Gas Sector................................................................7
2.2.1 Challenges and Opportunities...................................................................................................8
2.3 MIS and Organizational Performance..........................................................................................8
2.3.1 Theoretical Frameworks.......................................................................................................8
2.3.2 Previous Studies and Findings...............................................................................................8
2.4 Variables Selected in this Study.............................................................................................9
2.4.1 System Information Quality..................................................................................................9
2.4.2 Customer Satisfaction...........................................................................................................9
2.4.3 User Training.........................................................................................................................9
2.4.4 Organizational Leadership....................................................................................................9
2.4.5 Net Benefits..........................................................................................................................9
2.4.6 Organization Services Quality...............................................................................................9
2.5 Conceptual Framework and Research Hypotheses..............................................................10
3 Methodology....................................................................................................................................11
3.1 Research Design.........................................................................................................................11
3.2 Research Approach....................................................................................................................11
3.3 Research Objectives...................................................................................................................11
3.4 Philosophical Approach (Positivism)..........................................................................................11
3.5 Population and Sample Size.......................................................................................................12

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 3.6 Scale and Measures...................................................................................................................12
3.7 Data Analysis Method................................................................................................................13
3.8 Ethical consideration.................................................................................................................13
4 Results..............................................................................................................................................14
4.1 Introduction...............................................................................................................................14
4.2 Demographics............................................................................................................................14
4.3 Descriptive Statistics..................................................................................................................15
4.4 Construct Reliability...................................................................................................................16
4.5 Construct Validity......................................................................................................................17
4.6 Correlation Coefficient...............................................................................................................18
4.7 Regression Analysis....................................................................................................................18
4.6 Hypotheses Assessment Summary............................................................................................20
5. CONCLUSION...................................................................................................................................22
5.1 Implications for Managers:........................................................................................................23
5.2 Limitations and Future Work:....................................................................................................23
6 References....................................................................................................................................25
APPENDIX A: Questionnaire.............................................................................................................28
APPENDIX B: Plagiarism Report.......................................................................................................30

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1. Introduction
1.1 Background of the Study:
Transaction processing gathers information for the extensive corporate databases which form the basis
of Management Information Systems. The main purpose of such systems is to provide data needed by
managers during decision making and problem solving (Lapiedra Alcamí and Devecca Caramana
2012).

Management Information System (MIS) is mostly used today for better coordination and control of
business processes under the prevailing nature of business environment. It entails improved work
arrangement, reporting system, and rollout of different functionalities of an institution leveraging on
Information Technology. Today, many leading companies find it mandatory to use technology in their
daily operations since effective management information system is crucial for modern
organizations. Nowadays, management information systems have a strong impact on various tasks
and processes that occur in all departments of companies which form the area of continuous changes.
(Bourgeois, 2014).
According to Asemi et al., (2011), this can be seen in the management information system that is
considered one of the most important computer-based information systems that collect relevant data
for all managers working at a company unit or firm.
Organizational performance determines the possible achievement of the purpose for which business
was set up hence business success depends on this. Performance in an organization is determined by
several elements such as efficiency, effectiveness of the plan, and results (Almatrooshi et al., 2016).

MIS implementation in the highly complex operation environment is vital for increasing the overall
organization performance in the oil & gas sector. However, there is increased complexity in
operations and the requirement of the decisions made to be real-time. Therefore, this calls for an
extensive investigation into the effect that MIS implementation has on various performance
metrics. Therefore, this study is conducted within the setting of Pak-Arab Refinery Limited - PARCO
which is indeed one of the leading organizations in this field.

The research centered on exploring five critical elements that are important with respect to the oil and
gas sector in Pakistan. These factors were found to be reliable and important based on the study’s
results. PARCO included various aspects such as information quality, system quality, user training,
customer satisfaction, net benefits, and organization services quality that were termed as independent
variables. Each of them affected organizational performance differently. Furthermore, because there
were six factors used as predictor variables (the independent variables) towards organizational

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performance which was the dependent variable in this study, it utilized the multiple linear regression
model to examine data.

1.2 Statement of Problem:

What is really important is the influence management information system has upon organizational
effectiveness. For PARCO, the implementation and integration of MIS into this sector is very
important because it affects the whole performance of the Parco organization.

The perfect case is whereby an effective MIS should directly improve the organizations work by
improving collection of information, providing better decisions, and improved working
systems. Nevertheless, such practicalities as experienced by organizations like PARCO present
complexities in achieving these expected benefits. Difficulties include problems with system
integration, barriers to user acceptance, and possible mismatches between MIS features and the
particular requirements of the oil and gas sector could prevent MIS from being seamlessly integrated
into PARCO's operating framework.

Consequently, for organizations, particularly PARCO, the use of MIS will end up being sub-optimal
that could in turn result into inefficiency on one hand and loss of agility as well as missing in making
use of technology for growth on the other hand. This means that companies dealing with the oil and
gas segment must address various challenges so that they can achieve optimal performance through
MIS, high level of competition, efficiency, and successful business outcomes. Therefore, it is vital
that PARCO has the ability to understand and overcome these challenges so that it can continue to
thrive within a more complex oil and gas marketplace.

1.3 Research Gaps & Contributions

Although MIS has been acknowledged as having potential in the oil and gas sector, there is still a lack
of knowledge on the particular opportunities and challenges that come with implementing it,
especially in the context of PARCO. With the particular operational requirements and complexities of
the oil and gas industry in mind, this study tackles the important subject of how MIS integration
affects organizational performance.

1.4 Research Questions:

1. What is the effect of Management Information System installation on PARCO's operating
efficiency in the oil and gas sector?

2. In light of PARCO's organizational performance, how much does MIS aid in decision-making
processes?

3. With an emphasis on PARCO, what opportunities and difficulties are related to the
integration of MIS in the distinct operational environment of the oil and gas industry?

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1.5 Objectives of Study:
1. To assess how MIS affects PARCO's operational effectiveness.

2. To examine how MIS can improve PARCO's organizational performance decision-making

procedures.

3. To recognize and investigate, with an emphasis on PARCO, the opportunities and problems
related to the integration of MIS in the oil and gas sector.

1.6 Significance of Study:

This study is important because it sheds light on the particular consequences of MIS integration
within PARCO and offers useful information for improving operational effectiveness and decision-
making procedures in the oil and gas industry. The results provide industry practitioners and
academics with a useful resource and advance our understanding of the role that MIS plays in
organizational effectiveness.

1.7 Limitation of Study:

Although the study aims to offer significant perspectives, it recognizes certain constraints, such as
possible prejudices in the data gathering process, the ever-changing landscape of technology, and the
accessibility of extensive historical data within the designated time span.

1.8 Scope of the Study:

The influence of Management Information Systems on PARCO, an organization in the oil and gas
sector, is the only subject of this study. The scope includes a thorough examination of the effects of
MIS on operational effectiveness and decision-making procedures, offering knowledge that can be
applied to other organizations in the same industry.

1.9 Assumptions:
This study is predicated on the notion that the information gathered fairly depicts PARCO's MIS
deployment and that the conclusions point to more general patterns in the industry.

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2 Literature Review
2.1 Management Information Systems
Management Information Systems (MIS) are integrated systems that collect, process, store, and
disseminate information within an organization (Laudon & Laudon, 2015). MIS encompass hardware,
software, data, procedures, and personnel, all working together to support managerial decision-
making and enhance organizational performance (Sharma & Bhagwat, 2018). MIS provide a
framework for managing and analyzing data, facilitating efficient communication, and enabling
effective decision-making at various organizational levels (Wang & He, 2018).

2.1.1 Definition and Components

MIS can be defined as a computer-based system that processes and transforms data into meaningful
information used for managerial decision-making. It consists of several components, including
hardware (computers, servers, network infrastructure), software (applications for data processing and
analysis), data (structured and unstructured information), procedures (standard operating procedures
and protocols), and personnel (individuals responsible for managing and utilizing MIS) (Özdemir,
2019).

2.1.2 Types of MIS

There are various types of MIS, each serving specific organizational functions. These include:

 Transaction Processing Systems (TPS): TPS capture and process transactional data, such as
sales, purchases, and inventory (Laudon & Laudon, 2016).
 Decision Support Systems (DSS): DSS provide analytical tools and models to support
decision-making processes (Laudon & Laudon, 2016).
 Executive Information Systems (EIS): EIS focus on providing high-level summary
information to executives for strategic decision-making (Laudon & Laudon, 2016).
 Enterprise Resource Planning (ERP) Systems: ERP systems integrate various organizational
functions, such as finance, human resources, and supply chain management (Özdemir, 2019).
 Customer Relationship Management (CRM) Systems: CRM systems manage customer data
and interactions to improve customer satisfaction and loyalty (Laudon & Laudon, 2016).

2.2 Organizational Performance in the Oil and Gas Sector

The worldwide scope, capital-intensive nature, and complexity of the oil and gas industry define it.
Numerous elements, including operational effectiveness, safety, environmental sustainability,
profitability, and stakeholder satisfaction, have an impact on an organization's performance in this
area. The oil and gas industry uses Key Performance Indicators (KPIs) such as production volume,
customer satisfaction indices, reserves replacement ratio, exploration success rate, accident rate, and
profitability ratios to assess performance.

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According to (Almatrooshi et al., 2016), organizational performance refers to a proportion of an
achievement out of planned goals for the organization; in other words, it is a comparison of what have
been achieved and what should be achieved by that organization.

Every single employee of an association contributes towards the success of an organization. As such,
workers’ achievement is also part of organizational management (Almatrooshi et al., 2016).

2.2.1 Challenges and Opportunities

Organizational performance in the oil and gas industry is impacted by a number of issues. These
include shifting oil prices, dangers related to geopolitics, adhering to regulations, environmental
issues, and technology improvements. But these difficulties also give enterprises a chance to use MIS
to successfully solve them. MIS can help with risk management, decision-making improvement,
operations optimization, and strategic planning facilitation.

2.3 MIS and Organizational Performance

2.3.1 Theoretical Frameworks
With a focus on PARCO (Pak-Arab Refinery Limited), the study investigates the impact of
Management Information Systems (MIS) on organizational performance in the oil and gas industry.
MIS is essential for streamlining decision-making and streamlining corporate operations. Key
elements influencing organizational success, according to the research, include Information and
System Quality, Customer Satisfaction, User Training, Organizational Leadership, Net Benefits, and
Organization Services Quality. The study examines the dataset using a multivariate linear regression
model to ascertain the various effects of these parameters on PARCO performance.

2.3.2 Previous Studies and Findings

The effect of MIS on organizational performance has been the subject of earlier studies in a number of
industries, including the oil and gas sector. According to these researches, using MIS effectively is
positively correlated with increased operational efficiency, better strategic planning, faster and more
accurate decision-making, and a stronger competitive edge. However, a number of variables,
including corporate culture, system integration, staff training, leadership support, and data quality,
affect how well MIS deployment goes.

Overall, the research points to a positive relationship between organizational performance in the oil
and gas industry and the efficient use and use of MIS. To obtain useful insights and create specialized
methods for performance optimization in this sector, empirical research is necessary to examine the
precise influence of MIS on performance metrics inside certain firms, like PARCO.

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2.4 Variables Selected in this Study
The research paper selected the following variables for investigation within the oil and gas industry in
Pakistan:

2.4.1 System Information Quality

This variable assesses the reliability and effectiveness of the information and system infrastructure
within the organization.

2.4.2 Customer Satisfaction

This variable measures the level of satisfaction among customers with the organization's products or
services.

2.4.3 User Training

This variable evaluates the extent and effectiveness of training provided to employees in utilizing the
Management Information Systems.

2.4.4 Organizational Leadership

This variable examines the leadership practices and strategies implemented within the organization.

2.4.5 Net Benefits

This variable analyzes the overall benefits and returns generated by the implementation of
Management Information Systems.

2.4.6 Organization Services Quality

This variable assesses the quality of services provided by the organization to its customers.

These variables are considered as independent variables and are investigated to determine their impact
on organizational performance, which serves as the dependent variable in the study.

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2.5 Conceptual Framework and Research Hypotheses

H1: There is a positive effect of System Information Quality on Organization Performance.

H2: There is a positive effect of Organization Service Quality on Organization Performance.

H3: There is a positive effect of Organizational Leadership on Organization Performance.

H4: There is a positive effect of User Training on Organization Performance.

H5: There is a positive effect of Customer Satisfaction on Organization Performance.

H6: There is a positive effect of Net Benefit on Organization Performance.

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3 Methodology
The outline presented in the last chapter provides a basis for a conceptual framework. In this chapter,
is a short description on how the developed model will be evaluated. This study seeks to assess how
MIS impact organizational performance.
As per Pandey and Pandey (2015), “research design is merely a template or an outline to be used for
collecting and analyzing information.”

3.1 Research Design

Descriptive analysis is the research design that is used to examine and analyze the whole
picture of the circumstance. Additionally, it includes a thorough table-formatted discussion of
every finding. Since explanatory research enhances earlier investigations, it was employed.
Through the use of research questions to compare the findings, this will bolster earlier
theories. Explanatory study provides an explanation for the observed occurrence, issues,
behavior, and conclusions (Kothari, 2004).

3.2 Research Approach

The deductive method is the research strategy that is employed. This theory has previously
been proposed and extensively researched. The study is numerical in nature. In order to
examine the independent variables and their effects on dependent variables, research is
designed to analyze the data gathered. Sampling strategies and the statistical method used for
the investigation are included in the research. Additionally, mono-method research is
employed in this study. It occurs when either qualitative or quantitative data is gathered.
Since this is a quantitative study, generalization of the findings is anticipated.

3.3 Research Objectives

The results of this study will assist in determining which independent variable significantly
improves the dependent variable. The design of this study will aid in examining the impact of
MIS on the effectiveness of organizations and their many benefits. Because this research is
quantitative, it will aid in understanding the beneficial effects of each variable.

3.4 Philosophical Approach (Positivism)

The methodology assumes that respondents providing information should reflect the
characteristics of the population (Merriam, 2009). Experience, specialized knowledge, and
the position held by the responders were the selection factors (Venkatraman, 1989). Most
studies employ one of two approaches: inductive or deductive. Creating a theory from scratch
using data or previously published literature is known as an inductive approach. The
developed theory does not need to be confirmed in inductive inquiry. It is said to as a theory-

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building technique as a result. Conversely, the deductive approach develops a hypothesis or
model based on prior research that is empirically tested using evidence that has been gathered
(Saunders et al., 2009).

3.5 Population and Sample Size

Employees at high, medium, and low levels in Pakistan's oil and gas industry make up the
study's population. Using a sample of respondents, the researchers used non-probability
sampling to make generalizations of the research findings to the study methodology
(Saunders et al., 2009).

Any research project must carefully consider the sample size it will utilize, since a small
sample size may diminish its impacts while a big sample size may magnify the lesser effects
(Hair Jr. et al., 2014). The minimal sample size required for a study is a topic of debate
among academics (Bashir, 2016; Kline, 2011a). A recommended sample size for a PLS-SEM
investigation is 200 (Kline, 2011a). However, Sekaran (2003) suggests 30 samples for each
variable. According to Raosoft's online calculator, a sample size of 380 will be suitable for
populations larger than 20000. Furthermore, for each indicator variable, Onwuegbuzie and
Leech (2006) advise 10 to 15 examples. Thus, having a suitable and representative sample is
crucial for a study.

Krejcie and Morgan (1970) state that 257 is the appropriate sample size for an unknown
population. According to prior judgments, a sample size of 285 is therefore deemed sufficient
and suitable for the current investigation in order to produce a 95% confidence level with a
5% sampling error.

3.6 Scale and Measures

The researchers devised various scales, which were incorporated into the survey process.
However, similar scales have also been used in the past in a variety of settings. As a result,
the current study will validate the questionnaire in the oil industry of Pakistan.

There are three main categories of questions in the questionnaire. Six questions in Section
(A) were designed to elicit information about the participants and gather demographic data
from the replies. Twenty-nine questions in Section (B) pertain to MIS indicators and the
(Delone and Mclean, 1992) model of information system success. However, the six indicators
of MIS—system information quality, organization leadership, customer satisfaction,
organization service quality, user training and net benefits—are measured using the revised
version of (Delone and Mclean, 2003). There are five items things in each indicator except

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net benefits which have four items. These things have been prepared using (Elmorshidy,
2004; Halawi, 2005; Allour, 2010; Gay, 2012).

Finally, there are five questions about organizational performance in Section (C).With the
exception of the internal processes perspective, which has been based on (Blackmon, 2008),
the preparation of this item is based on (Blackmon, 2008). Each question was measured using
a five-point Likert scale, with 1 denoting strongly disagree, 2 disagree, 3 neutral, 4 agree, and
5 strongly agree.

The six variables that make up the MIS Indicators represent the intricate roles and
relationships that these indicators have. System information quality, organization leadership,
customer satisfaction, organization service quality, user training and net benefits are among
the factors associated with the Management Information System (MIS).

Table 1 provides a detailed description of the factors connected to the MIS indicators and
organization performance.

Table 1: Scales & Measures

Construct Source Items Reliability
System Information Quality Halawi (2005); Allour 5 0.837
(2010)
Organization Leadership Halawi (2005) 5 0.872
Customer Satisfaction Allour (2010) 5 0.885
Organization Service Quality Allour (2010) 5 0.842
User Training Halawi (2005); Allour 5 0.929
(2010)
Net Benefits Halawi (2005) 4 0.874
Organization Performance Blackmon (2008) 5 0.840

3.7 Data Analysis Method

The data exported from the questionnaire was sorted, carefully examined, and edited for
consistency prior to processing. After then, the data was divided into many groups. Making it
legible for SPSS, or the analysis software, was the second step. Version 17 of the Statistical
Package for Social Science (SPSS) program.

3.8 Ethical consideration

The research was conducted with careful consideration of ethical norms. The objectives,
methodology, and other specifics of the research study were explained to the respondents
(Bashir, 2016). They were also told that the information gathered would only be utilized for
academic research. It was explained to the respondents that they might stop participating in
the exercise at any time and that it was entirely voluntary. Additionally, they were told that

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completing the questions carries no risk and that their identity will remain private. These
recommendations were carried out in accordance with the advice of several other academics
(Marmor-Lavie, 2010). The researcher also made sure that none of the participants had any
issues in their personal or professional lives. Respondents' private and sensitive information.

4 Results
4.1 Introduction
Research problems and questions were developed in previous chapters. After that, a study
design was created, and it is described in chapter three (Methodology). The statistical
analysis that was done is included in this chapter. Descriptive analysis, validity analysis,
correlation analysis, and regression analysis are all included. Statistical analysis software,
such as SPSS version 17, was utilized.

4.2 Demographics
Table 2 showcases the demographic breakdown of the 285 respondents' employee profiles.
The data indicates that a majority of employees are male (80%) as opposed to female
employees (20%). Additionally, the table reveals that there is a higher percentage of married
employees (82%) compared to single employees (18%). A significant portion, totalling 43%
of the overall participants, are between 41-50 years old. Following this group, there are
(30%) aged 31-40 years old, (13%) above 50 years, and lastly (11%) below 30 years.
Additionally, a majority of the respondents hold Master's degrees at a rate of (48%), while
close to half have bachelor qualifications at (45%). There is also a small percentage with
diploma holders making up (6%), and those holding PhDs accounting for just (1%). From the
perspective of job positions within the organization, half represent management staff, while a
slightly smaller percentage are in technical roles (27%), and the remaining 23% hold non-
technical positions such as accountants, administrators, and HR personnel. In terms of
experience levels, about two-fifths (39%) have worked for 11-15 years in their current role at
the organization. The other experienced groups are distributed as follows: 6-10 years (24%),
16-20 years (18%), over 20 years (9%), with the remainder having less than five years'
experience. Given the demographic breakdown of the employee profiles, it is evident that
there is a predominance of male employees (80%) compared to female employees.

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 Table 2: Demographic Profile of Respondents
Profile Categories Frequency Percentage
Male 228 80
Gender
Female 57 20
Single 51 18
Marital Status
Married 234 82
Below 30 Years 31 11
31-40 Years 94 33
Age
41-50 Years 123 43
Above 50 Years 37 13
Diploma 17 6
Bachelors 128 45
Education
Masters 137 48
Doctor of Philosophy 3 1
Management Staff 143 50
Position Technical Staff 77 27
Non-Technical Staff 66 23
Less than 5 Years 29 10
06-10 Years 68 24
Experience 11-15 Years 111 39
16-20 Years 51 18
Above 20 Years 26 9

4.3 Descriptive Statistics

During the process of gathering data for the current study, 298 of the 425 questionnaires that
were sent were returned. This suggests a 70.1% response rate. A response rate of less than
50%, according to Bryman and Bell (2015), indicates a minority of the response rate and
could result in an inaccurate generalization of the population study results. The response rate
for this study is greater than 50%. As a result, it can be deemed adequate for the results of the
current investigation to be generalized.

Analysis of skewness and kurtosis was done to see whether the research's constructs were
normal. 13 questions, however, were eliminated after it was discovered during the first
assessment of the data that they had skewness and kurtosis values above range (i.e.-1/+1).
Table 3 presents the condensed results.

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 Table 3: Descriptive Statistics
Std.
Skewnes Kurtosi
Construct N Mean Deviatio
s s
n
System Information
285 3.091 0.811 .363 -.934
Quality
Organization
285 3.974 0.606 -.588 .008
Leadership
Customer
285 2.706 0.836 .533 -.814
Satisfaction
User Training 285 3.936 0.624 -.739 .453
Organization Service
285 2.785 0.784 .454 -.937
Quality
Net Benefit 285 4.100 0.629 -.538 -.221
Organization
285 4.075 0.677 -.703 -.104
Performance
Valid N (listwise) 285

According to the data covered above, all constructs had skewness and kurtosis values
between -1.0 and +1.0 (Kline, 2011b). It follows that any concept satisfies the condition of
univariate normality.

4.4 Construct Reliability

The key to reducing errors that could occur when measuring challenges in research is reliability.
This test shows that there are no random errors in your research. The study is trustworthy, and
participants completed the questionnaire with full support. Using Cronbach's Alpha, the
reliability of the questionnaire is examined. Generally, an alpha of 0.7 or greater is regarded
acceptable; the same standard is applied in this study.

Table 4: Reliability Analysis

Std.
Chronbac No Of
Construct Mean Deveiatio
h Alpha Items
n
System Information
0.846 5 3.091 0.811
Quality
Organization
0.825 5 3.974 0.606
Leadership
Customer
0.880 5 2.706 0.836
Satisfaction
User Training 0.798 5 3.936 0.624
Organization
0.791 5 2.785 0.784
Service Quality

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 Net Benefit 0.843 4 4.100 0.629
Organization
0.873 5 4.075 0.677
Performance

Table 4 shows that the values of Cronbach's alpha (CA) tests satisfy the condition being
greater than 0.7 (Henseler, Dijkstra, et al.,2014).

4.5 Construct Validity

According to Ramayah, Lee, and Chyaw (2011), validity is defined as the degree that is
shared by numerous items measuring the same concept.

Table 5: Validity Analysis

Total
Variance
Construct KMO Sig
Explaine
d
System Information 0.624 0.00 50.4%
Quality
Organization 0.822 0.00 50.0%
Leadership
Customer 0.788 0.00 51.0%
Satisfaction
User Training 0.605 0.00 55.3%
Organization Service 0.790 0.00 50.1%
Quality
Net Benefit 0.804 0.00 58.0%
Organization
0.869 0.00 58.2%
Performance

The KMO is a sample adequacy metric that is used to evaluate a dataset's suitability for factor
analysis. It determines whether the strength of the correlations between variables is sufficient
to extract significant elements. KMO is essential in the early phases of factor analysis to
guarantee the appropriateness of the data, even if it is not a validity test in and of itself.

A requirement for factor analysis is the Bartlett's test, which determines if the observed
variables in a dataset strongly correlate with one another. It investigates the possibility that
the variables are uncorrelated and the correlation matrix is an identity matrix. The adequacy
of the data for factor analysis is supported by a significant result that rejects the null
hypothesis.

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A concept utilized in factor analysis and other statistical analyses is TVE. It shows the
percentage of the total variance in the variables being studied that can be explained by the
factors or latent constructs in the model. It offers a general indicator of how effectively the
collection of constructs explains the variation in the observed data in the context of validity
testing. Greater TVE values suggest that a greater percentage of the observed variation is
explained by all of the model's components combined.

4.6 Correlation Coefficient

The strength of the correlation between variables is shown in Table 6. As a result,
the reaction variable (Organization Execution) includes a positive and direct relationship with
each of the anticipated factors. In other words, organization performance grows along with
each expected variable.

Furthermore, the oil and gas industry's Organization Performance correlates most strongly
with the sector's present Organization Service Quality (0.850), while it has the lowest
correlation (0.364) with the sector's Organization System Information Quality. However, the
findings demonstrate that none of the predictor variables—System Information Quality,
Organizational Leadership, Customer Satisfaction, User Training, and Net Benefits—have a
strong correlation with one another, disproving the multiple linear regression assumption that
there is a collinearity issue in the data.

Table 6: Correlation Matrix between Variables

Construct SIQ OL CS UT OSQ NB OP
System Information
1
Quality
Organization Leadership .398** 1
Customer Satisfaction .374** .525** 1
User Training .375** .537** .717** 1
Organization Service
.487** .536** .482** .459** 1
Quality
Net Benefit .406** .514** .651** .656** .744** 1
Organization Performance .364** .517** .559** .666** .850** .688** 1

These data indicate a correlation between the variables. It is evident that there is a positive
correlation between these variables. implying a correlation between each independent and
dependent variable.

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4.7 Regression Analysis
Regression analysis is used to examine the independent variable's coefficient value, which
indicates how much or if it has any effect at all on the dependent variable. Regression
analysis has been executed by the researchers to examine the gathered data.

Table 7: Model Summary

Adjusted Std. Error
R R of the
Model R Square Square Estimate
1 .946a .896 .893 .221

The above table includes the summary of the model reviewed; the value of R is 0.946 i.e.,
94.6 percent which represents the correlation percentage amongst these variables. How good
the model is suggested by the coefficient of determination R^2. From the above case, it is
0.896, which assumes when each independent variables changes, it changes equally the
dependent variable (organizational performance) 89.6%.

Table 8: Summarized Results

Unstandardized Standardized
Coefficients Coefficients
Std.
Variables B Error Beta T Sig.
(Constant) .099 .108 .919 .359
System Information Quality
-.019 .023 -.018 -.815 .416
Organization Leadership
.059 .028 .053 2.144 .033
Customer Satisfaction
-.027 .033 -.024 -.815 .416
User Training
.119 .034 .110 3.497 .001
Organization Service
.781 .026 .814 29.605 .000
Quality
Net Benefit
.082 .033 .076 2.510 .013

To assess each independent variable's significance, the table above weighs it against the
dependent variable. The aforementioned independent variables' unstandardized coefficients
show how much and in what way they influence the dependent variable. Its positive result
indicates that unstandardized coefficients have a positive effect on the performance of the
organization.

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This indicates that the only factors that positively affect the independent variable are
organization leadership, user training, organization service quality, and net benefit. When the
sig value is smaller than 0.05, it indicates a significant positive link with the performance of
the organization. The table above demonstrates that the only factors that significantly
positively correlate with consumer behaviour are "organization leadership," "user training,"
"organization service quality," and "net benefit."

The above table 8 has also helped to form the regression equation:
Y = b0 + b1X1 + b2X2 + b3X3 + b4X4 + b5X5 + b6X6

Where: Y is Organization Performance; X1: System Information Quality; X2: Organization

Leadership; X3: Customer Satisfaction; X4: User Training, X5: Organization Service
Quality, X6: Net Benefit. The equation for the impact of MIS on Organizational Performance
is as below:
Y = 0.099 + 0.059X2 + 0.119X4 + 0.781X5 + + 0.082X6

4.6 Hypotheses Assessment Summary

Hypotheses Statement Sig. Value Decision

There is a positive effect of System
H1 Information Quality on Organization 0.416 Rejected
Performance.
There is a positive effect of Organization
H2 Service Quality on Organization 0.000 Accepted
Performance.
There is a positive effect of Organizational
H3 Leadership on Organization Performance.
0.033 Accepted
There is a positive effect of User Training
H4 on Organization Performance.
0.001 Accepted
There is a positive effect of Customer
H5 Satisfaction on Organization Performance.
0.416 Rejected
There is a positive effect of Net Benefit on
H6 Organization Performance.
0.013 Accepted

First hypothesis affirms that H1: There is a positive impact of System Information
Quality on Organization Performance. Table 8 shows that H1: System quality →
Organisational performance have an unstandardized estimate of -0.019, standardized path
coefficient of -0.018, standard error of 0.023, and the significance value of 0.416. The
hypothesis was established to test the positive relationship. For this reason, the H1 has been
rejected and the study establishes a negative relationship between System Information
Quality and organizational performance. System information quality that have been used in
company was found to be less impacting on organization performance. The results are
consistent with the previous literature (Ominunu, 2015).
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 Second hypothesis affirms that H2: There is a positive effect of Organization Service
Quality on Organization Performance. Table 8 shows that H2: System quality →
Organizational performance have an unstandardized estimate of 0.781, standardized path
coefficient of 0.814, standard error of 0.026, and the significance value of 0.000, which is
less than 0.05. This proves that there is a sufficient proof to agree to the study hypothesis.
Consequently, H2 was accepted. The research developed a direct relationship between
organization service quality and organizational performance. Organization service quality
that have been used in company was found to be more impacting on organization
performance. The results are consistent with the previous literature. The impact of service
quality for Management Information Systems on organizational performance is consistent
with existing research. For example, the implementation of an effective MIS can improve
organizational efficiency by enhancing communication and expediting decision-making
processes. (Al-Mamary, Shamsuddin and Aziati, 2015).

Third hypothesis affirms that H3: There is a positive effect of Organizational

Leadership on Organization Performance. Table 8 shows that H3: Organization Leadership
→ Organizational performance have an unstandardized estimate of 0.059, standardized path
coefficient of 0.053, standard error of 0.028, and the significance value of 0.033, which is
less than 0.05. This proves that there is sufficient evidence to agree to the study hypothesis.
Consequently, H3 was accepted. The research intoduced a direct relationship between
organization leadership and organizational performance. The results are consistent with the
previous literature (Azadeh, Salehi and Salehi, 2016).

Fourth hypothesis affirms that H4: There is a positive effect of User Training on
Organization Performance. Table 8 shows that H4: User Training → Organizational
performance has unstndardized estimate of 0.119, standardized path coefficient of 0.110,
standard error of 0.034, and the significance value of 0.001, which is less than 0.05. This
proves that there is sufficient evidence to agree to the study hypothesis. Consequently, H4
was accepted. The research established a direct relationship between user training and
organizational performance. The results are consistent with the previous literature (Salleh,
Zakaria and Abdullah, 2016).

Fifth hypothesis affirms that H5: There is a positive effect of Customer Satisfaction
on Organization Performance. Table 8 shows that H5: Customer Satisfaction →
Organizational performance have an unstandardized estimte -0.027, standardized path

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coefficient of -0.024, standard error of 0.033, and the significance value of 0.416 greater than
value of 0.05. The hypothesis was introduced to test the positive relationship. For this reason,
the H5 has been rejected and the study establishes a negative relationship between customer
satisfaction and organizational performance. The results are consistent with the previous
literature (Ominunu, 2015).

Lastly, H6: There is a positive effect of Net Benefits on Organization Performance.

Table 8 shows that H6: Net Benefits → Organizational performance have an unstandardized
estimate of 0.082, standardized coefficient of 0.076, standard error of 0.033, and the
significance value of 0.013, which is less than 0.05. This proves that there is enough proofs to
agree to the study hypothesis. Consequently, H6 was accepted. The research created a direct
relationship between net benefits and organizational performance. The results are consistent
with the previous literature (Al-Mamary, Shamsuddin and Aziati, 2015).

5. CONCLUSION
Based on the study's findings on Management Information Systems (MIS) integration in the
oil and gas sector, the conclusions were highly relevant to managers at PARCO. The study
revealed several key insights that have direct implications for managers:

1. Importance of Organizational Leadership: The research highlighted the positive effect

of organizational leadership on organizational performance. Managers at PARCO can
leverage this insight to prioritize effective leadership practices, such as promoting a
culture of innovation, fostering collaboration, and providing strategic direction to
teams.

2. Significance of User Training: The study demonstrated the positive influence of user
training on organizational performance. Managers at PARCO can use this finding to
emphasize the importance of ongoing training and professional development
programs to ensure that employees are proficient in using MIS effectively, which can
lead to improved efficiency and decision-making.

3. Emphasis on Organization Service Quality: The research indicated a strong positive

effect of organization service quality on organizational performance. For managers at
PARCO, this finding underscores the importance of delivering high-quality services
to customers, emphasizing the need for continuous improvement in service delivery
processes.

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 4. Understanding the Role of Net Benefits: The study highlighted the direct relationship
between net benefits and organizational performance. This insight can guide
managers at PARCO to focus on maximizing the returns and benefits derived from
MIS integration, potentially through cost-benefit analysis, resource optimization, and
alignment with the organization's strategic goals.

5.1 Implications for Managers:

 Implementation of Effective Leadership: As part of their role, managers can

prioritize the development and implementation of effective leadership strategies.
These strategies should focus on promoting innovation, fostering collaboration,
and providing strategic guidance to enhance organizational performance.
 They can invest in ongoing training programs to insure that workers are complete
in exercising MIS, thereby perfecting overall effectiveness and decision- making
processes. also, emphasis on hand chops development through trainings can
promote creativity and the inflexibility of enforcing new programs or plans
formulated. Delegation and job appraisal among workers can enable the
association identify crucial capabilities which lead to strategy perpetration
therefore firm performance.
 Associations should prioritize and maintain high- quality service delivery to
appreciatively impact organizational performance. Leadership plays a crucial
part in easing innovative changes in the factory work terrain, to produce a safe
and conducive work- place, install a operation supporting system supporting the
factory's purpose of high performance, through continual literacy, hand
development, and close perceptivity to the original community and natural
terrain. The strategy process itself is moved down from the traditional operation-
by- objects approach to concentrate on policy deployment that" challenges"
lower situations of the association to meet strategic pretensions. The broader
changes in pool treatment and erecting a conducive organizational culture are a
result of larger strategic organizational changes in the company. Also, platoon
leadership has gained significance which is incorporated into their individual
position of tone ‐ efficacity, shaping conditions for invention. espousing HR
operation practices similar as time ‐ spatial inflexibility and information and
communication technology support may cultivate an invention ‐ driven
atmosphere.
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  They shood concentrate on maximizing the net benifits deduced from MIS
integration to enhance organizational performance. This can be achieved through
cost- benefit analysis and resource optimization.

5.2 Limitations and Future Work:

While the study provides significant perceptivity into the impact of MIS on organizational
performance in the oil painting and gas sector, certain limitations must be conceded. The
exploration was subject to implicit impulses in the data gathering process and may have been
told by the fleetly evolving technology geography. also, the availability of expansive
literal data within the designated time span may have constrained the depth of analysis.
likewise, the study's compass was limited to the operations of PARCO, and the findings may
not be completely generalizable to other associations in the oil painting and gas assiduity.
structure on the current study, unborn exploration sweats could further explore the specific
challenges and openings related to MIS integration in the oil painting and gas sector. This
may number probing the implicit impact of external factors, similar as geopolitical pitfalls,
technological advancements, and nonsupervisory changes, on the effectiveness of MIS within
the assiduity. also, longitudinal studies could be conducted to assess the long- term goods of
MIS integration on organizational performance, enabling a more comprehensive
understanding of the dynamic relationship between MIS and success criteria within the oil
painting and gas sector.

the study provides significant insights into the impact of MIS on organizational performance
in the oil and gas sector, certain limitations must be acknowledged. The research was subject
to potential biases in the data gathering process and may have been influenced by the rapidly
evolving technology landscape. Additionally, the accessibility of extensive historical data
within the designated time span may have constrained the depth of analysis. Furthermore, the
study's scope was limited to the operations of PARCO, and the findings may not be fully
generalizable to other organizations in the oil and gas industry

[24]
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 APPENDIX A: Questionnaire
SA A N DA SDA
System and Information Quality
How do you think the managing system that is used by your company is developed and up to date?
Did technology helped in your company to make better decisions?
The system Flexible enough in your opinion
Does your company have fewer errors because of using IT tools?
Does the information that you get at work is supported by computer systems?

Top Management Support Measure (Organizational Leadership)

Has senior management encouraged the use of the MIS in your department?
Do you think the leader's behavior towards technology has affected your application of MIS at your organization?
Does the management of your company understand the vital meaning and importance of MIS?
Does the top manager participate in the decision-making process actively?
Does the top management help you in finding resources and the needs for doing your job?

Customer Satisfaction
Do you think better managing (the existing information system) of your company will make customers more satisfied?
Do you think your company management system is effective and efficient?
Does your company have short time responses to their clients?
Are the customers satisfied with the employees’ performance?
Does your company information system meet the expectations and needs of the customers?

Personnel Issues (User Training)

Is your company staff trained adequately to use MIS in the organization?
Do personnel training influence the user’s ability to request for information from MIS?
Are the Security Strategies adopted for MIS use sufficient for protecting unauthorized access to information?
Do you think it is appropriate to control access to the MIS database?
Do you feel comfortable in using the system?

Net Benefits:
Using the MIS in my company helps reduce the time allotted to accomplish my tasks.
Using the MIS in my company will improve my job performance.
The application of the MIS in my company helps increase productivity.

The MIS in my company enhances the effectiveness of my job.

Organizational Services Quality

Are you provided with appropriate devices & equipment to get the job done?
Does the hardware available in the organisation have a high capacity to accomplish the work required?

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Are the necessary expertise’s available to deal within the devices with in the organization?
Did the management of your company give you training on how to use computer systems at your job?
Do the technical support teams have the knowledge to do their job well?

Usefulness of the System (Organization Performance)

The information available is appropriate to complete the work.
Information system help in improving the efficiency of employee in the administrative system
How much computer systems helped you to perform your job faster?

How much using technology and managing it made productivity of you and your company more?
Did management systems help you to get announcement and information in the company easier?

SA: Strongly Agree

A: Agree
N: Neutral
DA: Disagree
SDA: Strongly Disagree

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APPENDIX B: Plagiarism Report

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