THE IMPACT OF STRATEGIC PLANNING ON THE USE OF ELECTRONIC INFORMATION SYSTEM: EMPIRICAL EVIDENCE FROM JORDANIAN BANKS

Abstract

Recently, the banking sector has been facing many challenges because of rapid and continuous changes in technological developments. Due to these daunting challenges, the traditional management of operations and ways were incapable of making the banks competitive, which requires them to use the modern administrative methods available. However, strategic planning is able to increase the competitiveness of banks and improve their performance. Environment strategic analysis clearly affects many factors in banking business which in particular affects the functioning of electronic information system. Despite these evidences, however, the connection between strategic planning and electronic information system has not received enough attention especially from Jordanian banks. Hence, this study aimed to examine the impact of strategic planning on electronic information system in banks in Jordan. Therefore, a sample of 491 employees from six banks was used in the survey using simple random sampling technique. The items of the constructs that achieved satisfactory points after tests of reliability by Cronbach alpha, KMO from EFA, fit indices through CFA using software such as SPSS and AMOS for the analysis were thus carried forward to the Structural Equation Modelling. The results from the SEM supported the hypotheses raised and revealed that strategic flexibility, strategic direction clarity, and senior management support have a positive direct effect on electronic information system in banks in Jordan. Conclusively, the findings show that the higher the organization's ability to adapt to the fundamental changes occurring within or outside the organization, or define a clear framework for the organization in terms of its mission, vision, goals and core values, or the conviction of the senior management of the philosophy of management, the greater its ability to use and apply procedures, tools and material means, in the information system more efficiently.