Factors affecting decision making effectiveness in Palestinian Banks

This study investigated the influence of information quality on decision-making effectiveness among Palestinian bank managers. Previous studies revealed the importance of information quality on decision-making effectiveness in different fields of management. Organisational structure was found to moderate information quality and decision-making effectiveness in different fields of management. However, the moderating effect of organisational structure on the relationship between information quality on decision-making effectiveness had not been addressed in the banking sector in Palestine. This cross-sectional quantitative study examined the relationship between information quality and decision-making effectiveness as being moderated by organisational structure. A total of 146 managers were surveyed in which they were required to respond to 55 items that elicited the three variables. Information quality was represented by six dimensions, organisational structure three dimensions, and decision-making effectiveness three dimensions. The data were analysed by SPSS and PLS-SEM software. The findings indicated the relevance and importance of information quality dimensions to decision-making effectiveness in the banking sector of Palestine. The result revealed four dimensions of information quality, namely, accuracy, completeness, relevancy and interpretability had a significant relationship with decision-making effectiveness. Two dimensions of organisational structure, namely, formality and centralisation, significantly moderated the relationship between information quality and decision-making effectiveness while complexity did not show a moderating effect. Overall, this study extends the understanding of the decision- making effectiveness. It contributes to building the model of the relationship between information quality and decision-making effectiveness in the banking industry. These findings will benefit bank managers in Palestine to understand the role of information quality better and utilise it towards developing sustainable banking services in Palestine