Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

How Financial Performance can be Improved by Decision Support Systems; the Role of Knowledge Management Capacity

Author(s): Gholamreza Amini Khiabani, Fatemeh Mahmoudian

Amongst several success factors, prosperity in the market not only depends on the ability of an organization to the collection of information for decision-making but also on the direction and allocation of knowledge capacity. This is due to the dynamic business environment in which information changes repeatedly and structured decision-making becomes important. Thus, the main purpose of this research is to develop a model to help organizations in achieving financial performance using a decision support system. We also investigate the mediating role of knowledge management capacity in this relationship. A survey was conducted among 282 specialists in the dairy industry in Iran. Structural equation modelling with the partial least square method was used in order to analyze data. Findings revealed that organizations can create and exploit a decision support system using datadriven knowledge, key performance indicator and critical success factor. Results further revealed that knowledge management capacity could facilitate the proposed model and help organizations improve their financial performance.

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