Impact Of Database On Organizational Performance In An Industry

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Impact Of Database On Organizational Performance In An Industry


The impact of Database in business environment has evolved over time to become an integral part of its business operations in Nigeria. The use of information systems (ISs) has increased in the last 10 years not only by firms, but also by individuals and even governments. The use of database was encouraged by the technological breakthroughs; the advancements in telecommunications such as the internet, the globalization that created a global unlimited marketplace, the strong growing for information economy, and the rise of competitive digital firms. This study looks at the impact of database on organizational performance in an industry. A sample of 120 staff of NNPC Benin city was used for the study, and simple chi-square test was used to the study hypothesis. The findings revealed from this investigation proved that there is a significant relationship between Database and organizational performance. The findings also revealed that there is a significant relationship between Information systemand management decisions in an organization. This study therefore concludes that database significantly influences the organizational performance of NNPC Benin city through increased profitability and market share.

Chapter One


1.1 Background of the Study

It is common knowledge that an organization’s effectiveness is determined by its decision-making capabilities, and decision-making is based on timely access to high-quality data.

In order to carry out day-to-day operations, an organization’s transactions must be processed. Payroll must be prepared, and sales and account payments must be posted; these and other data processing tasks must be completed, but a database is more than just a data processing system. It’s a computer-assisted information retrieval system that provides data to managers and decision-makers (www. Data, organization, and journals).

It is really hard to imagine an industry or business that has not been affected by computer information systems and computer applications. Many businesses consider management of their information resource to be equal to their other key resources: properties, facilities, employees and capital. MIS is about analyzing and designing information system that fulfills those business requirements. (www. Journals, information and organisation)

“Wherever people are active and working together in an organization, they work out some sort of system without the help of an analyst, through these systems, they get things done”. Such systems have been found to be frequently inefficient and sometimes even inadequate.

Database (computer oriented has evolved to reduce the inadequacies of the traditional information system).

1.2 Statement of Research Problem

Managerial work has become increasingly information-intensive, and the world in which it is performed has become increasingly information-rich, thanks to modern trends. To summarize, any company that does not have a solid database will fail. As a result, the following issues must be addressed: (

  1. Does a database affect the success of an organization?
  2. Does the database influence the decision-making of the organization?

1.3 Aims and Objectives of Study

The major objective of this study is to provide relevant information as regards the impact of Database on organizational performance and also to add to the bank of knowledge where any similar write-up-exists.

The objective could be broken down as follows:

  1. Examine whether Database has any impact on organizational performance.
  2. Determine whether database has any impact on management decision making.

1.4 Research Questions

In order to achieve the objective of this study, the following questions will be answered by the study;

  1. Does Database have any impact on organizations performance ?
  2. Does database have any impact on organization decision making?

1.5 Scope Of Study

This research project will be carried out solely in the oil industry, Nigeria National Petroleum Corporation (NNPC) to be specific.

It will be conducted only in Edo-State (Benin City) and will concentrate on information systems of management (one of the technologies designed to efficiently assist management in collecting and processing information).

1.6 Significance of the Study

This research (project) is very relevant as it will provide first-hand information on the impact of information system on management performance in the oil industry.

The Oil Industry (NNPC): Management will be informed as regards how to effectively collect, process, store and disseminate data at their disposal. This will lead to growth in the Nigerian National Petroleum Corporation and the oil industry in Nigeria.

The various investors (Potential and Existing) will benefit also as growth and development in the industry would mean growth in their investments.

As the industry advances due to proper management of information, it would be easy to discharge its corporate social responsibilities, thus, the society benefits.

Government: For environmental planning, military planning tax management, urban planning, rate management etc. All this can be made possible through Databases.

The research will also beneficial to future researches on this particular area of interest.

Where any similar research exists, it will add to the bank of knowledge for future studies.

1.6 Statement of Hypotheses

  1. H0: Database has no effect on organizational performance.
    HA: Database has an effect on organizational performance.
  2. H0: Information system has no impact on management decisions in an organization.
    HA: Information system has an impact on management decisions in an organization.

1.7 Limitations of the Study (Constraints)

Certain factors could possibly hamper and affect the success of this research project. Not enough time, funds, materials, too large a distance to be covered, might not allow for a very elaborate study to be conducted. Hence, the study might be of less meaning compared to its significance in order to save time, cost, effort and reduce stress, a company in the oil industry (Nigerian National Petroleum Corporation) has been selected as a case study.

1.8 Research Methodology

The method to be used for collecting data for this project shall majorly be derived from two sources which are the primary and secondary sources.

The basic instrument for the collection of data shall be questionnaire. It is hoped that this medium will secure the needed information with great accuracy and will minimize cost and time.

1.9 Definition of Terms


A computer is an electronic device that operates under instruction of stored programmes, accept input (data), process it according to specified rules, produces output (information) and store the result for future use. It could also be seen as an electronic device that accepts data, process data in a prescribed format and produce result in a specified format. They (computers), work under the influence of stored programmes, automatically accepting, storing and processing. Data to produce information that is the result of the processing. (


This could be defined as raw facts and figures that are not meaningful parse and cannot be used in making decisions until processed. ( of

Data Processing:

Computer receives data as input, carries out manipulation on the data to give result (information) as output which is used for decision making. This process is referred to as data processing. The process of collecting items of source data together and converting them into information. (


Information held on backing storage (usually on magnetic discs or magnetic tapes) in order to enable it to persist beyond the time of extension of a single job and/or to overcome space limitations in memory. ( wiki/files…(computer).


These are the physical parts of the computer system. They comprise of the input unit, system unit and the output unit. It also includes the storage unit e.g. memory. They are parts which can be seen, felt and touched. Examples are: keyboard, printer, mouse, monitor etc. (


This can be defined as data processed for a purpose. It is simply data processed to have a particular meaning, relevance and usage within a specific context. Kenneth and Norwich (2003).Davis (1974:85), defined information as data that have been possessed into a form meaningful to the recipient and perceived valuable in current or prospective decisions.

Information Technology:

The practical application of science in various fields of learning, in transferring data or facts or information from one place to another. In relation to organization, information technology can be defined as the practical application of science in the production of goods and services in an industry. ( technology.html).


A “database” is a planned system of collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. It is a computer based system that optimizes the collection, transfer and presentation of information throughout an organization by using an integrated structure of data bases and information flow. O’Brien (1999), Long and Long (2004).


A record is a collection of data handled together in transfer to and from peripheral devices. It is also a collection of related fields describing an event or item or transaction. (


These are the instructions which the computer system (hardware) follows to carry out a particular task. They are made up of series of programmes, hence, they are programmes which drive the hardware. ( software.html).

Chapter Five

Conclusion and Recommendation

5.1 Conclusion

In this study, our focus was to carryout a critical analysis on the impact of database on organizational performance in an industry. The study specifically was aimed at Examining whether Database has any impact on organizational performance, Determine whether database has any impact on management decision making.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 120 responses were validated from the enrolled participants where all respondent are active workers in the Nigeria National Petroleum Corporation (NNPC) in Edo State.

The findings revealed from this investigation proved that there is a significant relationship between Database and organizational performance. The findings also revealed that there is a significant relationship between Information system and management decisions in an organization.

Information system collects data, organizes people, procedures, databases and devices used to provide routine information that will assist managers in making effective and efficient decisions that will improve both individual and organizational performances, plays a vital role in realizing the objectives of an organization. It helps in ensuring that actual organizational performance conforms to the expected performance objective of the organization through the provision of accurate and necessary information needed for effective decision making that will lead to the achievement of organizational objectives. This study therefore concludes that database significantly influences the organizational performance of NNPC Benin city through increased profitability and market share.

5.2 Recommendation

Based on the foregoing conclusion, the following, recommendations were hereby made:

  1. Management should ensure that organizational performance is sustained through regular evaluation of her database.
  2. Management should also ensure that other organizational success factors are evaluated to compliment the contributions of the database to the success of the organization.

Impact Of Database On Organizational Performance In An Industry

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Impact Of Database On Organizational Performance In An Industry


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