Impacts of information management on business performance

Abstract

Purpose The objective of this paper is to analyze and interpret some empirical results, obtained from an online survey, on the types of review and analysis approaches used by organizations in manufacturing, service, education, health care, and not‐for‐profit sectors and their relationships with business performance. Design/methodology/approach Data were gathered using an online survey to capture basic information about the organization and its performance, the types of measures used in each of the five Baldrige results item groups, types and frequencies of review of the data, and types of analyses conducted. Results were analyzed using descriptive statistical analyses and tests for significant differences. Findings The results suggest that a significant gap exists in the sophistication of analysis methods between higher and lower performing organizations in terms of customer, financial, and market performance, and that better performance is associated with more mature and sophisticated approaches to performance analysis. Research limitations/implications Because of the exploratory nature of this study, the generalizibility of the conclusions is limited; however, the results of this study can be useful for developing more formal theories to understand management practices and business performance and, as a basis for more designing, research efforts validate the propositions suggested by these theories. Practical implications Managers should invest in effective performance measurement systems that include sound approaches for analyzing results and sharing information appropriately throughout the organization. Originality/value This work provides further validation of the quality management principle and Baldrige core value of “management by fact,” and offers practical advice for designing effective performance management systems.