Performance effects of information systems integration : A system dynamics study in a media firm

Purpose – The purpose of this paper is to understand the relationship between information systems (IS) integration and business performance in the context of the ad traffic system of a media company. Design/methodology/approach – A system dynamics (SD) model that shows ad traffic system structure was developed and simulation scenarios were examined. Findings – Simulation scenarios identify the dysfunctional effects of the lack of IS integration. The model shows how IS integration problems increase the dynamic complexity of business processes, resulting in poor business performance. It also shows how and why IS integration improvements can lead to superior performance. Research limitations/implications – Researchers of business process management will benefit from a wider adoption of simulation and SD modeling approaches. The modeling process and model validation are discussed. Practical implications – SD modeling can help organizations analyze and streamline their business processes through IT, significantly and sustainably improving their business performance. Originality/value – Modeling the relationship between IS integration and business performance through time.