The influence of integrated information systems on firm financial performance

Abstract

This study investigates the influence of integrated information systems (IIS) features on firm financial performance, more precisely return on asset (ROA). Research results, based on data obtained from 83 firms in 2018, confirmed the positive effect between IIS analytical capabilities on ROA, while IIS scope had negative effect on ROA. Estimated regression model revealed that IIS age and IIS implementation quality did not have any effect over firm financial performance. Findings from the study indicated that firms and IIS vendors should be careful in IIS design phase, taking into account that IIS design incorporates appropriate analytical capabilities required by business processes. Also, scope of selected IIS modules should be rational in order to avoid unnecessary IIS investment costs.

Keywords

• business performance indicators
• Croatia
• integrated information systems