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Leveraging Information Systems For Strategic Management: Enhancing Decision-Making and Organizational Performance

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Leveraging Information Systems For Strategic Management: Enhancing Decision-Making and Organizational Performance

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American Journal of Industrial and Business Management, 2024, 14, 1045-1061

https://www.scirp.org/journal/ajibm
ISSN Online: 2164-5175
ISSN Print: 2164-5167

Leveraging Information Systems for Strategic


Management: Enhancing Decision-Making and
Organizational Performance

Ashrafuzzaman Hera1, Abdullah Al Rian1, Md. Omar Faruque1, Mir Mohtasam Hossain Sizan2,
Nure Alam Khan3, Md. Atikur Rahaman4, Mohammed Julfikar Ali5
1
Department of Management Information Systems, International American University, Los Angeles, CA, USA
2
Department of Business Analytics, University of North Texas, Denton, USA
3
Department of HRM, Fareast International University, Dhaka, Bangladesh
4
School of Management, Jiujiang University, Jiujiang, China
5
School of Business & Economics, Presidency University, Kolkata, India

How to cite this paper: Hera, A., Al Rian, Abstract


A., Faruque, Md. O., Sizan, M. M. H.,
Khan, N. A., Rahaman, Md. A., & Ali, M. J. This research explores the effects of exploiting IS on strategic management,
(2024). Leveraging Information Systems for decision-making, and organizational performance within the scenario of the
Strategic Management: Enhancing Deci- UK Fast Moving Consumer Goods (FMCG) industry. This nature of the in-
sion-Making and Organizational Perfor-
mance. American Journal of Industrial and
dustry as rather competitive and vulnerable to constant changes calls for
Business Management, 14, 1045-1061. quick and effective decision-making that IS provides. In this manner, IS can
https://doi.org/10.4236/ajibm.2024.148054 help with the strategic management, offer improved function management on
an organizational level and improve supply chain and consumer. It reveals
Received: July 7, 2024
Accepted: August 10, 2024
that IS is a significant tool in predicting market shifts, as well as a means of
Published: August 13, 2024 adapting to new laws to enhance sustainability and ethical benchmarks to
foster organisational innovation and differentiation across FMCG firms. The
Copyright © 2024 by author(s) and study is concerned with understanding how and in what ways IS influences
Scientific Research Publishing Inc.
decision-making (research question 1) and organizational performance (re-
This work is licensed under the Creative
Commons Attribution International search question 2) in the context of the UK FMCG industry. Following a pos-
License (CC BY 4.0). itivist research philosophy, the research adopts a quantitative research ap-
http://creativecommons.org/licenses/by/4.0/ proach, and statistical analysis guarantees the reliability and validity of the
Open Access data collected. Collection of data from structured questionnaires and statisti-
cal analysis using linear regression models reveal that IS has a positive and
vital impact on the improvement of decision making processes and other or-
ganizational performances. Logical assumptions suggest that IS enhances the
decision-making process and the performance of organizations. While there
are many concerns such as escalating costs and security risks, the proper in-
corporation of IS increases organizational objectives while emphasizing a da-
ta-driven approach to IS. The study provides a robust rationale for increasing

DOI: 10.4236/ajibm.2024.148054 Aug. 13, 2024 1045 American Journal of Industrial and Business Management
A. Hera et al.

the uptake of IS across industries in a bid to boost competitiveness and or-


ganisational performance. Future research should also embrace qualitative
research designs to capture more richness and diversity of the topic and in-
clude more diverse geographical locations. Also, the study of the moderating
role of the new technologies like AI and mechanism learning on the IS effec-
tiveness enhances the development of the strategic management frameworks
that could be helpful for different industries.

Keywords
Leveraging Information Systems, Strategic Management, Decision-Making,
Organizational Performance, UK, FMCG Sector

1. Introduction
1.1. Background of the Study
Increased technologies have impacted on the strategic management where in-
formation systems (IS) form an integral component that boosts an organiza-
tion’s performance and improves its decision making. Consequently, integrating
IS into strategic management has recently been an essential aspect for both the
attainment of competitive edge and operations management. IS thus helps in
compilation and processing of large data and provides necessary support to the
managerial level in making appropriate and timely decisions. It also comple-
ments various strategic activities such as market assessments, planning, and de-
velopment so as to improve the organizational efficiency. The capability to uti-
lise Information Systems for strategic management is especially valuable in the
context of increasing technologic developments and a shifting business envi-
ronment that presupposes high velocities of change and highly informed deci-
sions (Nguyen & Tran, 2023).
Different sectors and organizations have considered strategic business initia-
tives and performance outcomes that can be provoked by IS. Organizations have
accredited the use of integrated and strategic information systems like Enterprise
Resource Planning (ERP) and Customer Relationship Management (CRM) sys-
tems to massive increases in operational efficiency, customer satisfaction, and
organizational performance (Alsharari et al., 2023). These systems give general
picture of business processes of organizations and their customers, which enable
firms to fine-tune their strategies to address the customers’ needs hence improving
customer satisfaction. Lastly, the effective application of advanced analytics and
BI technologies allows companies to determine new trends and potential future
situations and act accordingly concordantly with the changes. Therefore, IS not
only contributes to strategic decision-making but also facilitates continuous
learning and improvement processes in organizations (Johnson et al., 2022).
However, the use of IS for strategic management also has limitations such as
high costs that may be required to implement technology and train people and

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A. Hera et al.

includes issues of security as well as compatibility issues that are likely to arise
when trying to incorporate IS within the existing processes of the firm. In a
broader context, three key conditions for efficient IS utilisation have been iden-
tified: alignment of the technology with specific organisational objectives, and
strategic cultivation of a data-oriented organisational culture. In addition, it is
worth acknowledging that technology is a vast area that is only developing,
which means that new strategies and methods are to appear constantly to remain
unique. Overcoming these challenges requires a multilevel solution that encom-
passes leadership commitment, learning organization, and institutionalized IT
governance structures. Through overcoming all these barriers, it becomes easy to
capture the benefits offered by IS in boosting the managerial capabilities of an
organization’s strategic management and thereby producing high organizational
performance in the current and constantly advancing business environment
(Smith et al., 2023).

1.2. Problem Statement


The UK’s Fast Moving Consumer Goods (FMCG) is a high turnover, and rela-
tively low profitability sector as it consists of products that are frequently and
regularly consumed by consumers or businesses. Therefore, there is a need for
companies to embrace Information Systems (IS) for strategic management in
order to improve the making of decisions and hence the performance of organi-
zations. This rapid rate of innovation has also brought complex IS tools into the
fold for the FMCG companies to handle large volumes of information and come
out with valuable information. These systems allow people to conduct data anal-
ysis in real time, manage supply chains, and cultivate customer relations. Appli-
cation of IS for strategic purposes helps firms make predictions and determine
what the market or consumers will require in the future to enhance marketing
strategies as well as product differentiation. In addition, this integration results
in enhanced coordination between various departments to enhance its opera-
tions and at the same time reduce cost. In the context of the UK FMCG industry,
the audiences’ acceptance of IS also embraces strategic objectives in the context
of the increasing focus on digital transformation and sustainability. It helps in
monitoring the resource consumption parameters and it will facilitate knowing
the legal and environmental compliance as well. In general, with the establish-
ment of strong IS frameworks in the FMCG sector, decision making is foreign
with competitive advantage and long-term sustainable growth.

1.3. Aim of the Study


The aim of this study is to examine leveraging information systems for strategic
management: enhancing decision-making and organizational performance.

1.4. Rational of the Study


The rationale for studying “Leveraging Information Systems for Strategic Man-

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A. Hera et al.

agement”: Regarding the UK FMCG sector it could be linked to the fact that the
industry is highly competitive, it is always in a state of flux. This industry is a
very competitive industry where making the right and speedy decisions is vital in
maintaining competitiveness and continued business operations. IS is vital as it
offers both current data and analytical tools and anticipatory tools, which are
essential in decision-making. In strategic management, IS provides a means of
better managing organizational functions, altering supply chains, and com-
municating with consumers. The UK market has been changing gradually and
by employing IS, FMCG firms are able to forecast the changes and thus respond
to the changes in the law or meet high expectations on sustainability and ethics.
Furthermore, the use of IS improves the organizational performance indicators
thus dynamism and innovativeness in organizations. From the analysis of IS in
this sector, the study will encourage other sectors to adopt this technology as a
means to improve competitive edges.

1.5. Research Objectives


RO1: To investigate the impact of leverage information system on decision
making in the context of UK FMCG sector.
RO2: To investigate the impact of leverage information system on organiza-
tional performance in the context of UK FMCG sector.

1.6. Research Questions


RQ1: What is the impact of leverage information system on decision making
in the context of UK FMCG sector?
RO2: What is the impact of leverage information system on organizational
performance in the context of UK FMCG sector?

2. Literature Review
2.1. Strategic Management and Information Systems
Over the years, the incorporation of Information Systems (IS) into strategic
management has emerged as an important field of research due to technological
developments and the ever more complicated business environment in the
global context. Strategic management therefore defines cross-organizational
decision making, execution and assessment aiming at achieving organizational
goals. Information Systems, including data acquisition and processing technol-
ogies, play a central role in this process as they offer the means whereby data
can be collected, processed and utilised efficiently. Information Systems in
strategic management enables an organization to improve organizational flexi-
bility and performance through data analytics, Business intelligence, and pre-
dictive modelling in the decision-making processes. This coordination is most
beneficial in fields such as the Fast Moving Consumer Goods sector, which is
characterised by high volatility, constant changes in the market and customer
needs.

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A. Hera et al.

2.2. Improving the Decision-Making Process through


Information Systems
Decision making has also been made easier through the use of Information Sys-
tems through providing analytical tools and real-time information. The use of
big data platforms and the integration of machine learning algorithms help firms
to gain insights from data such as patterns, trends, and other facets of the mar-
ket. In the context of FMCG where product cycles are short and customer con-
sumption cycle is fluid, these capabilities are highly beneficial. IS increases de-
mand forecast accuracy, inventory management, and supply chain management
resulting in increased efficiency and reduced costs. In addition, IS is involved in
key business management decisions in areas such marketing, product develop-
ment and management of customer relations through consumer analysis and
feedback. Thus, organizations may devise more relevant advertising appeals, de-
sign products that consumer’s desire, and increase both sales satisfaction and
loyal customers.
Research on the role of Information Systems and review of cases has compiled
a wealth of support for the DM orientation of IS. Recent scholarly studies show
that companies that strategically utilize information systems and technology are
likely to achieve higher operational efficiencies, innovation, and market sensitiv-
ity than firms that fail to integrate information systems. For instance, in empiri-
cal research conducted on the UK FMCG sector, it was evidenced that firms that
have adopted advanced IS in supply chain management enjoy great operational
benefits and improvements in customer satisfaction. The same happened with a
well-known FMCG firm where an enhancement in the application of predictive
analytics and machine learning in product development resulted in an increase
in the new product hit rates and market share (Chui et al., 2021). As highlighted,
the study further establishes the importance of IS in improving different aspects
of strategic management including but not limited to operation, innovation, and
competitor pressure aspects.

2.3. Challenges and Future Directions


However, as this paper has shown, integrating Information Systems into strate-
gic management as highlighted in the case of Walls & Ceilings has benefits that
cannot be ignored. Two important challenges among the top concerns are as
follows: Strategic alignment of IS with organizational vision and objectives is a
core concern of IS management, which is fundamentally tied to understanding
both the technological readiness and strategic direction of a business. Further,
rapid technological advancement can also prove to be a drawback because dif-
ferent IS updates become difficult to incorporate within the organizational in-
frastructure leading to possible obsolescence of IS and greater expenditure
(Bharadwaj et al., 2021). Other risks remain as security and privacy issues con-
tinue to be a major challenge especially in industries where consumer data is vi-
tal for decision making such as the FMCG industry. Future research that should

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A. Hera et al.

be given a priority includes providing stricter theories on IS integration, research


on artificial intelligence and blockchain technology on strategic management,
and most importantly the impact of heavy data usage. If these challenges are ad-
dressed adequately then organizations can harness strategic value of IS for
achievement of strategic objectives and gain sustainable competitive advantage.

2.4. Leveraging Information System and Decision Making


A primary and peer negligent level analysis of literature on the application of IS
for strategic management in the fast moving consumer goods sector of the
United Kingdom expresses a complex environment defined by the use of tech-
nology, the organizational structure and the forces of competition. In this case,
the development of IS within the FMCG industry represents a clear management
transition towards a data-led environment and digitalisation. Laudon and Lau-
don (2020) for instance underscore the importance of IS in enabling organiza-
tional flexibility and responsiveness to the market force, and consequently shap-
ing strategic management decisions. Similar to this view, it is posited that through
the creative application of IS, firms can create superior value and become inno-
vation leaders as technology is integrated into the value chain activities.
Furthermore, the use of advanced analytics, artificial intelligence, and ma-
chine learning in the operations has also influenced the way these firms collect
and use information for business intelligence purposes. Big data and predictive
analytics can help top organisations in anticipating what consumers would pre-
fer to buy, at what prices settings would make the most profits and how to prac-
tically appeal to customers to ensure they keep coming back. Thus, there is a lot
more to IS success especially when it comes to integrating it in the strategic
management process than simply mastering technology; it calls for integration
of organizational culture, leadership, and change management skills/strategies.
This is in line with the perspective that IS can only contribute to strategic
outcomes if information technology is appropriately aligned with organizational
objectives. Furthermore, the application of knowledge management for the reali-
sation of the potential of IS for strategic management has been pointed out by
scholars to require culture change towards the analysis of data and learning.
However, the implementation of IS in the FMCG sector has its own limitations
and drawbacks The following areas remain the major concern for implementing
IS in the sector: Challenges with implementation of IS include the emergence of
security risks, privacy concerns as well as what could be referred to as infor-
mation overload. Also, it implies that due to the fast rate of advancement in
technology, FMCG firms have to further develop and expand their IS capacities
to sustain a competitive advantage within this sphere (Gupta & George, 2023).
Therefore, as summarised by the literature, IS holds the possibility of revolu-
tionising the manner in which strategic management is undertaken and conse-
quently the optimisation of organisational performance in the context of the UK
FMCG industry. However, to realise these benefits tangible knowledge of the re-

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A. Hera et al.

lationship and interaction between technology, organisational factors and the


industrial environment must form part of the ground work and much attention
must be given proactively in order to counter the issues and complexities of IS
implemented and utilised.

2.5. Leveraging Information System & Organisational


Performance
Nevertheless, the research on the interface between Information Systems (IS)
and organizational performance has received significant interest mainly because
of IS importance in improving the strategic management and organizational
performance efficiency. Information Systems refer to a set of tools and technol-
ogy aimed at organizing, processing, storing, and transmitting information to
facilitate decision-making processes, improve organizational operations effi-
ciency, and gain competitive advantage. The overall theoretical framework that
supports the concept of the strategic worth of IS is the Resource-Based View
(RBV), which asserts that enforced resources like, advanced IS, are fundamental
to the formulation of a lasting competitive edge. Subsequent trends have built on
this framework to show how IS capabilities are enmeshed within overall strategic
plans to enhance organizational effectiveness. Companies applying big data ana-
lytics reported better decision making, innovation and operations performance.
In FMCG specifically, big data can be applied to understanding consumer pref-
erences, demand, and potential pricing strategies, enhancing competitiveness
and profitability.
However, the successful implementation of Information Systems is not as easy
as it sounds when we hear of the following challenges. Challenges that are asso-
ciated with data privacy, cyber security concerns, and the implementation of
legacy systems remain a challenge. Making data secure and safeguarding it
against various regulations like GDPR is a prudent move, particularly given the
enormity of consumer data. Leadership and strategic alignment are also relevant
for advocating the use of IS for improved organizational performance. Integra-
tion of IS in top management entails support and a vision for integration of IS
with the rest of the organization in order to achieve success in implementation.
Other research has indicated that organizations that effectively implement lead-
ership of IS are better placed to achieve optimal IS investment advantages such
as productivity, innovation, and business edge. Also, organization culture of
constant enhancement and adaptability is critical for using IS as it helps organi-
zations in attaining market and technological fluctuations quickly.

3. Methodology
3.1. Theoretical Framework
Figure 1 illustrates the theoretical framework highlighting how leveraging in-
formation systems (IS) impacts decision making and organizational perfor-
mance. It suggests that effective use of IS enhances decision-making processes,

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A. Hera et al.

leading to improved organizational outcomes. By providing timely and accurate


information, IS supports better strategic and operational choices, ultimately im-
proving efficiency and performance. This framework underscores the strategic
importance of aligning information technology with organizational goals to
achieve superior performance.

Figure 1. Theoretical framework.

3.2. Research Philosophy


The positivist research philosophy is often explained in the context of the study
publication. As such, the researcher will be able to allocate more time for the
collection of the data for the study article. Consequently, the researcher becomes
more reliant on the data during an investigation, making the data more trust-
worthy. As a consequence of this investigation's findings, the researcher will be
able to construct a reliable and effective empirical study to investigate leveraging
information systems for strategic management: improving the quality of deci-
sion making and organizational outcomes.

3.3. Research Design


According to the findings of the study, it was recommended that a quantitative
research approach should be employed when collecting the data and analysing
the results. The primary goal of using quantitative method is that it deals with
numeric data that can be analyzed statistically. Due to the continuous nature of
the data that is relevant to the research issue, this study shall give emphasis on
Interpretivism. Besides, the inductive research technique, which enables the use
of concepts and facts which are already known and the interpretation of the re-
sults, will be the main focus of the on-going study. In order to ensure proper
implementation, the study will focus its research strategy on descriptive re-
search. As the experience shows, using this specific type of research methodolo-
gy can greatly contribute to improving the knowledge about the social context.
The major research aim of this research would be to evaluate the degree of tech-
nical literacy among executives in business firms. Applying the methods of
quantitative research allows for tracking events which can be detrimental for
people. The most commonly used approach to accumulating objective facts is
quantitative methodology, which involves the use of numbers and a statistical

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A. Hera et al.

approach to share data succinctly and clearly. One of the strengths of using
quantitative research designs is that there is a well-defined association between
statistical data and the aim and hypotheses of the study. This factor is one of the
primary reasons for choosing a quantitative research approach as the method of
data collection.

3.4. Research Approach


Deductive reasoning, on the other hand, involves the identification of a single
aspect of the problem under consideration and frequently depends on the prop-
ositions of the other relating to criteria determined in other circumstances. This
will be done after coming up with hypotheses and the process of going out there
and collecting data to support or refute this hypothesis will go a long way in
supporting the research objectives and aims. This forms a strong and motivating
factor for the researcher to conduct observation that are detailed and collect
other data relative to the study. As a result, hypotheses can be made by the re-
searcher from the information that is collected by him or her in the course of the
study.

3.5. Data Collection Process


This section justifies how data will be gathered from the targeted participants, as
stated in the assessment. First of all, the questionnaire from the previous articles
has to be altered according to the independent and dependent variables and has
to be discussed with the supervisor about this. The questionnaire will be taken
through an approval process by the supervisor and then uploaded on Google
form and the participants will be informed through the link on the Google form.
The questionnaire will adopt a 5-factor Likert scale, where the options for each
question will include: Strongly Agree, Agree, Neutral, Disagree, and Strongly
Disagree.

3.6. Data Analysis Process


The collected data will be kept in a tabular form using an Excel spread sheet. The
organisation of the data will help in the process of going to enter into the pro-
gramme known as SPSS version 20. Quantitative data will be collected through
survey questionnaires while qualitative data will be collected through interviews
after data submission and the results will be acquired through different assess-
ment methodologies. The primary use of the frequency test is to obtain quantita-
tive data pertaining to the evaluation by the experts of various statements. After
that, the correlation of the variables will been determined through regression
and comparative analysis. Concept evaluation can also be done using the statis-
tics approach as a means of evaluating concepts.

3.7. Ethical Consideration


It is important to note that all applicable ethical considerations were obeyed

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A. Hera et al.

when assembling the data for this research endeavor. Issues that relate to the
voluntaries’ right to autonomy were discussed, including the previous written
consent they gave as the participants in the study. Indeed research information
availed here can help in preparing a desirable response. Moreover, the privacy
and the integrity of the data has also been examined. The researcher alone will
be the only person to have the access to any of the data or information that could
be used to trace or reach a particular participant. As to the information dissemi-
nated, complete confidentiality of the research findings has been upheld. In this
study the researchers have exemplified high levels of moral conduct.

4. Results/Findings
4.1. Demographic Analysis
4.1.1. Table “Gender” (Table 1, Figure 2)
In relation-n to the gender distribution, the data show that males constituted
slightly more than half of the sample, accounting for 49 percent (49 partici-
pants), while females constituted slightly less, accounting for 51 percent (51 par-
ticipants). The varied breakdown of participants implies that there is no inclina-
tion towards either gender thus giving a 360-degree view for analysis. The latter
further attests to the fact that the compiled sample incorporates 100 participants
with equal numbers in both gender groups. This distribution is important for
achieving greater objectivity in the study and to obtain relevant conclusions
since the gender factors should be balanced and comprehensive.

Table 1. Gender.

Valid Cumulative
Frequency Percent
Percent Percent
MALE 49 49.0 49.0 49.0
Valid FEMALE 51 51.0 51.0 100.0
Total 100 100.0 100.0

Figure 2. Gender.

4.1.2. Table “Age”


The age group 25 - 30 years is 22% of the respondents, which represents the re-
spondents’ early career employed professional (Table 2, Figure 3). About thirty
percent of them is between 31 - 35 years of age, which can be referred to as peo-
ple in their prime who are most likely to have a stable employment status. Lastly

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A. Hera et al.

and lastly, the age group of more than 35 years held 29% of the responses and
can be assumed to represent the group of professionals with more working expe-
rience or may be more experienced professionals. The percent total shows that
the 31 - 35 years age group has 71 percent of the examined respondents, the rest
of the sample comprises of the remaining age groups above 35 years. A diverse
age distribution of the sample guarantees that the results of the study will be
more inclusive of various, different, and sources that provide richer data re-
garding the experiences of the implementation of information systems on strate-
gic management and organizational performance of the UK’s FMCG sector.

Table 2. Age.

Cumulative
Frequency Percent Valid Percent
Percent
18 to 24 years 19 19.0 19.0 19.0
25 - 30 years 22 22.0 22.0 41.0
Valid 31 - 35 years 30 30.0 30.0 71.0
Above 35 years 29 29.0 29.0 100.0
Total 100 100.0 100.0

Figure 3. Age.

4.1.3. Table “Education”


According to the results of the educational background of respondents, 47% of
the 100 respondents have a bachelor’s degree, and 53% of the respondents have a
master’s degree (Table 3, Figure 4). With this distribution, it can be inferred
that a tiny margin of the sample has acquired the ability to go to school further.
Finally, the accumulative percentage further substantiates that all respondents,
when combined, possess at least a bachelor’s degree, which identifies the group
as well-educated. The higher percentage of the respondents who have obtained a
master’s degree (53%) can also be seen as a trend toward a higher level of educa-
tion which is important in the environment that demands a more profound ex-
pertise. This distribution could help to identify the educational status of the tar-
get audience from which business or political leaders could change their organi-
zational direction or policies that capitalize on the high level of education of

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A. Hera et al.

workers.

Table 3. Education.

Cumulative
Frequency Percent Valid Percent
Percent

Bachelors 47 47.0 47.0 47.0

Valid Masters 53 53.0 53.0 100.0

Total 100 100.0 100.0

Figure 4. Education.

4.2. Reliability Analysis


Table “Reliability”
Cronbach’s alpha coefficients of the variables in this research show high level of
internal reliability of the measure instruments used in the study. Specifically,
Leverage Information System variable Cronbach’s alpha is 0.834 thus, Decision
Making has alpha of 0.851 for its corresponding constructs, namely Market Per-
formance and Organizational Performance respectively 0.819, each developed
from four items. These values, are all above the commonly accepted threshold of
0.700 which indicates that the items in each variable are tapping into the same
factor. Such reliability is important for determining the soundness and credibil-
ity of the study conclusions together with the scales that measure such variables
as leveraging information systems, decision-making, as well as organisational
performance in the context of the FMCG sector in the UK (Table 4).

Table 4. Reliability.

Variables Cronbach’s alpha N of Items

Leverage Information System 0.834 4

Decision Making 0.851 4

Organisational Performance 0.819 4

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A. Hera et al.

4.3. Linear Regression Analysis


Hypothesis 1: There is a significant impact of leverage information system on
decision making in the context of UK FMCG sector.
4.3.1. Table “Model Summary (Hypothesis 1st)”
Overall, the model summary proves the high relevance of information systems
management to strategic management in the UK’s FMCG industry (Table 5). It
is seen that the value of the coefficient of correlation (R) is equal to 0. A coeffi-
cient of 0.843 is almost perfect, which indicates a very high correspondence of
the variables. They get an R Square value of 0.710 means that the utilization of
information systems enables one to predict 71% of organizational performance.
The Adjusted R Square which is a little lower at 0.707, represents the number of
predictors, the model explains the sentiment to a similar extent. The standard
error of the estimate is 1.83662, which shows how far the observed values deviate
from the regression line on average, to argue that the overview of performance
outcomes, using information systems usage, is reasonably accurate in terms of
the model developed.

Table 5. Model summary.

Adjusted R Std. Error of the


Model R R Square
Square Estimate

1 0.843a 0.710 0.707 1.83662

4.3.2. Table “ANOVAa (Hypothesis 1st)”


The analysis of variance table below summarises the statistical results of the hy-
pothesis pertaining to Information Systems leveraging and Decision-making
within the context of the FMCG sub-sector (Table 6). It shows that within the
regression sum of squares of 810.225, much variance in decision-making is ex-
plained through the predictor, leveraging information systems which are greater
than the value in the residual sum of squares of 330.572. It had a mean square
regression value of 810.225 to the denominator and a residual mean square of 3.
Descriptive in Table 1 indicates the mean and SD of the known variable, XP 373,
at 3137, and the resultant F-values of 240.196 which is very low highly significant
(p < 0.000). This suggests that the variable capturing the use of information sys-
tem to make decisions is a good predictor of the decision-making process. Hy-
pothesis testing procedure for assertiveness: t = 1.332, p = 0.143. The level of
significance (Sig value is 0.000) again supports the notion that the fact observed
in this study is statistically significant implying that the probability of such a fact
being observed by pure coincidence is very small. Therefore, according to the
findings highlighted above, the data offers compelling proof that adopting in-
formation systems can significantly improve different aspects of decisional deci-
sion-making for firms in the UK’s FMCG sector; the results reaffirm the role of
technology in strategic management techniques.

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Table 6. ANOVAa.

Sum of
Model df Mean Square F Sig.
Squares

Regression 810.225 1 810.225 240.196 0.000b


1 Residual 330.572 98 3.373
Total 1140.797 99

Hypothesis 2: There is a significant impact of leverage information system


on organizational performance in the context of UK FMCG sector.
4.3.3. Table “Model Summary (Hypothesis 2nd)”
In terms of model summary, it reflects that there is a considerably significant
and positive influence of information systems’ usage for organizational perfor-
mance in the UK’s FMCG industry (Table 7). Exposing the new model to the
CO2 emission trend also gave it an impressive R value pegged at 0.239, it also
remains within moderately strong territory at 769. The R Square value of 0 indi-
cates the percentage of total variance explained by the model and the closer it is
to 1, the better the model is 0.591. Even though no two organizations operate
with the methodology of using information systems 1% of organizational per-
formance is accounted for by the use of information systems. The adjusted R
Square is a slightly lower value of 0.587, and this together with the R2 of 0.663
and the number of predictors in the model gives credence to the model. The
standard error of the estimate is 2.13477, which gives a fairly good indication of
the extent of organizational performance as estimated from the given predictor
while holding considerable promise in terms of providing a foundation for fur-
ther investigation.

Table 7. Model summary.

Adjusted R Std. Error of the


Model R R Square
Square Estimate

1 0.769a 0.591 0.587 2.13477

4.3.4. Table “ANOVAa (Hypothesis 2nd)”


The ANOVA table provides the analysis of the stock regression model investi-
gating LIS relation to Organizational Performance in the context of the dataset
(Table 8). The regression model processed a phenomenal F-ratio of 141.495,
there was also a significant effect for the proportion of variance in Organization-
al Performance accounted for by the model, R2 of 0.495, suggesting a high level
of predictability of the proposed relationship. Comparison of means of the Rat-
ing (M) revealed a statistically significant difference between groups (p < 0.000).
By “Leveraging Information Systems”, meaning the effective use of information
technology, these findings imply that this factor has a statistically significant
impact on changes in scores in organisational performance. Additionally, we
have a low value of p < 0.000 with the regression coefficient that shows that there

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A. Hera et al.

is a zero hypothesis rejection of LIS and Organizational Performance relation-


ship, thus meaning that there is a real relationship and not a random occurrence.
Even though the absolute t-values of the independent variables and their associ-
ated t-statistics are relatively moderate; the high value of the coefficient of de-
termination (R-squared = 0.591) suggests that 59%. Organizational performance
is, therefore, explained by leveraging information systems in the following man-
ner; Leveraging Information Systems = mean + 0.01298*(Leveraging Infor-
mation Systems – mean) Variation in Organizational Performance = 1% In to-
tality, these findings can be interpreted to accord with the proposition that fits
within the theme of how proper deployment of information systems impacts on
organizational performance in accordance with the data under consideration.

Table 8. ANOVAa.

Sum of
Model Df Mean Square F Sig.
Squares

Regression 644.829 1 644.829 141.495 0.000b


1 Residual 446.611 98 4.557
Total 1091.440 99

5. Conclusion
5.1. Summary
To sum up, this research gives great insights that Information Systems (IS) are
indispensable for strategic management in the FMCG sector of the UK. The
study thus confirms that incorporating IS is not just an additional resource but
vital for strengthening organizational success and decision-making tools. Thus
IS is proven to be invaluable in market evaluation, planning and improvement,
all fostering organizational effectiveness, by facilitating data accumulation,
computation and intelligent managerial aid.
Informed to prior research, increased adoption of advanced IS tools including
ERP and CRM in the operation of FMCG firms has been proven to augment op-
eration efficiency, customer satisfaction, and performance. They allow for the
continuous transfer of data from one department to another, making it possible
for decision-makers to access the right information at the right time. This acces-
sibility makes it possible to make highly informed and timely decisions that will
directly determine the capacity of the firm to respond well to market forces, and
the demands of the consumers.
However, the study also reveals some of the problems encountered in its im-
plementation as follows Should IS implementation. Painful money affairs that
include initial resource investments, upgrade costs and expenses for putting in
continual support are hurdles that accompany such arrangements for various
motives Such attachments raise security issues and compatibility complications
with the conventional systems in place. These challenges call for the proper posi-
tioning of IS with reference to the general organizational goals and building of

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A. Hera et al.

data.
These challenges require the proper positioning of IS in regard to the organi-
zation’s strategic vision and embracing of data-based tendencies. This alignment
helps to ensure that the investment made in IS, especially by the organization
yields maximum benefits and ultimately maintains the essence of IS as a tool for
implementing strategic management in the organization.
In addition, the research points out that it is necessary to eliminate the men-
tioned obstacles to enhance the capabilities of IS for sustainable development. It
is only possible if organizations are willing to address these challenges by dedi-
cating resources for training workers, implementing strong protection strategies
against cyber threats, and considering the compatibility of these systems with the
organization’s requirements and processes. In this way, they are in a position to
control the nuisances and augment the utilities of IS in order to facilitate better
decision-making and superior organizational performances.
The various pieces of evidence collected from research adopting quantitative
research methodology and positivism accentuate the fact of the increased im-
portance of IS for enhancing decision-making and organizational performance.
The examination of structural variables and correlation matrices, along with the
linear regression models explaining the positive relationship between IS strategic
deployment and enhanced organisational performance, supports this conclu-
sion. The sources of evidence above can therefore support the necessary confi-
dence for FMCG firms to rush and invest in IS as capital asset.
Altogether and in conclusion, the study confirms that IS is a central factor
within the strategic management configuration of the FMCG sector in the Unit-
ed Kingdom. Therefore, IS enhances the efficiency of the data flow and supports
decision-making processes, thereby playing a major role in achieving an organi-
zation’s goals and objectives. Nevertheless, based on the analysis, the advantages
of implementing IS significantly overshadow the disadvantages if companies
ensure proper direction and alignment of their initiatives with their targets and
enhance awareness of the significance of information support among organiza-
tional members.
These findings are useful in explaining the market charm for FMCG firms that
seek to unravel the environment and competition. Therefore, by availing the
benefits of IS in the best manner possible, these firms are able to enhance opera-
tional effectiveness, increase consumer satisfaction, and in turn, the ability to
grow sustainably. Thus, the study provides practical value to managers and deci-
sion-makers by outlining the IS implementation processes and pointing to the
respective key issues that should be addressed to mitigate implementation risks
effectively.
Future research may build upon this work to examine the consequences of IS
on organizational performance after a period of time or relationship develop-
ment, and appraise how the role of Information System is likely to change in
light of more recent technologies such as artificial intelligence and machine
learning. First of all, further identifying concrete components affecting the suc-

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A. Hera et al.

cessful implementation of IS within given organizational environments would


produce more detailed IS knowledge and suggestions for FMCG firms.
To sum up, based on the analysis, the research proves beyond reasonable
doubt that Information Systems play a critical role in the strategic management
and performance of FMCG firms in the UK. In this way, by adopting IS and
overcoming the problems of the implementation of respective systems, these
firms have an opportunity to strengthen their decision-making and obtain fur-
ther improvements in performance which will give them competitive advantages
in the rather competitive FMCG environment.

5.2. Limitation and Future Direction


The research on the role and implementation of Information Systems (IS) for
strategic management in the UK’s FMCG sector also has some limitations which
are as follows. It can be said that quantity-based approaches can blind analysts to
qualitative characteristics, while the fact that this research was conducted specif-
ically for the UK may not be applicable to other countries. Further studies
should employ both qualitative research methodologies to obtain detailed views
and explore more geographical areas to encompass many markets. Besides, re-
search on how innovations such as AI and machine learning affect the effective-
ness of IS can also be useful in enriching SMEs, and improving the framework
for Strategic Management and decision-making in different industries.

Conflicts of Interest
The authors declare no conflicts of interest regarding the publication of this pa-
per.

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