Data Warehousing Infusion and Organizational Effectiveness

Data warehousing (DW) has emerged as one of the most powerful technology innovations in recent years to support organization-wide decision making and has become a key component in the information technology (IT) infrastructure. Proponents of DW claim that its infusion can dramatically enhance the ability of businesses to improve the access, distribution, and sharing of information and provide managerial decision support for complex business questions. DW is also an enabling technology for data mining, customer-relationship management, and other business-intelligence applications. Although data warehouses have been around for quite some time, they have been plagued by high failure rates and limited spread or use. Drawing upon past research on the adoption and diffusion of innovations and on the implementation of information systems (IS), we examine the key organizational and innovation factors that influence the infusion (diffusion) of DW within organizations and also examine if more extensive infusion leads to improved organizational outcomes. In this paper, we conducted a field study, where two senior managers (one from IS and the other from a line function) from 117 companies participated, and developed a structural model to test the research hypotheses. The results indicate that four of the seven variables examined in this paper-organizational support, quality of the project management process, compatibility, and complexity-significantly influence the degree of infusion of DW and that the infusion, in turn, significantly influences organization-level benefits and stakeholder satisfaction. The findings of this paper have interesting implications for both research and practice in IT and DW infusion, as well as in the organization-level impact of the infusion of enterprise-wide infrastructural and decision support technologies such as DW.