Measuring the perceived effectiveness of decision support systems and their impact on performance

a r t i c l e i n f o This study investigates decision support systems (DSS) by assessing the factors that enhance their perceived effectiveness and their impact on performance. This was achieved by using a simulation exercise with 652 senior graduate students who developed DSS and reported on the systems created. Our analysis shows that DSS users who perceive the system as effective correlate to improved company performance. However, investing significant human resources in developing a system does not necessarily guarantee enhanced performance. In addition, the study exemplifies how user traits can impact perceived effectiveness. Companies worldwide use decision support systems (DSS) to provide computer-based support for decision makers charged with solving semi-structured and unstructured problems. Studies show that DSS are effective if the users' design objectives or performance expectations of the system are met (Kamis et al. [25]). This is because the information needs of the users (the decision makers) are appropriately supported by the DSS (Lawrence et al. [29]; Khazanchi [27]). Moreover, recent information systems studies use subjective measures, such as user experience, perceived enjoyment and usefulness , to stress the importance of cognitive and affective perceptions in DSS (e.g., Kamis et al. [25], Chen and Lin [6]). In addition, users today are more involved in the development process of the system they eventually use (Fjermestad and Romano [15]). Therefore, it is vital to better understand the relationship between system development and user involvement in the development process (De Kok et al. [11]; Quinn [40]). Consequently, the question of measuring the effectiveness of DSS appears to be the providence of the user (i.e., perceived effectiveness). This study investigates the factors that enhance DSS perceived effectiveness. We use a simulation method for this research, where the simulation functions as the platform for participants to experience DSS. This research follows an approach akin to that of Ben-Zvi [3] who considered a DSS simulation and its educational efficacy. We augment the investigation by shifting the focus to the systems, the users, and the impact on performance. Classes of students formed groups and participated in a simulation exercise. The groups, simulating companies in an industry, developed DSS that were later characterized and analyzed. In addition, several variables related to DSS perceived effectiveness were evaluated and compared to group performance. The remainder of the paper is organized as follows: First, we review information systems literature on DSS and set the …