Strategic and organizational determinants of information system sophistication: An analysis of the uptake of database marketing in the financial services industry

This paper investigates strategic and organizational determinants of adoption/non-adoption of strategic marketing information systems that differ in degree of sophistication. We identify potentially relevant variables and relate them to the use of database marketing (DBM) systems. Using an obtained sample of 49% of all major banks, building societies and insurance companies in the UK, we compare users and non-users and, within the users, we identify intercorrelations with those variables linked to degree of sophistication. Adoption of DBM systems is closely associated with the organization placing a greater strategic importance on direct marketing decision, strategic integration of information technology (IT) and marketing, the possession of a large direct marketing grouping and a strong marketing and information orientation. These factors, coupled with a greater degree of organizational slack and weaker organization control of resources and more decisive decision making, separate adopting organizations from non-adopters. Once adoption has occurred, greater DBM sophistication is closely linked to the power of the direct marketing function, the importance placed on the strategic integration of IT and marketing, the size of the direct marketing grouping, and the organization's overall information orientation.