An empirical study on data warehouse systems effectiveness: the case of Jordanian banks in the business intelligence era

TLDR

The data warehouse has become an important decision‑making tool in modern business, yet academic studies on its effectiveness remain scarce. The study aims to evaluate the effectiveness of data warehousing within Jordanian banks. A theoretical model extending DeLone and McLean was developed and empirically tested via partial least squares structural equation modeling on survey data from 127 Jordanian bank respondents. Data quality, system quality, user satisfaction, individual benefits, and organizational benefits were found to strongly contribute to data warehousing effectiveness, underscoring its role in enhancing competitiveness of Jordanian banks.

Abstract

Purpose Despite the increasing role of the data warehouse as a supportive decision-making tool in today's business world, academic research for measuring its effectiveness has been lacking. This paucity of academic interest stimulated us to evaluate data warehousing effectiveness in the organizational context of Jordanian banks. Design/methodology/approach This paper develops a theoretical model specific to the data warehouse system domain that builds on the DeLone and McLean model. The model is empirically tested by means of structural equation modelling applying the partial least squares approach and using data collected in a survey questionnaire from 127 respondents at Jordanian banks. Findings Empirical data analysis supported that data quality, system quality, user satisfaction, individual benefits and organizational benefits have made strong contributions to data warehousing effectiveness in our organizational data context. Practical implications The results provide a better understanding of the data warehouse effectiveness and its importance in enabling the Jordanian banks to be competitive. Originality/value This study is indeed one of the first empirical attempts to measure data warehouse system effectiveness and the first of its kind in an emerging country such as Jordan.