| Data, information, and knowledge are the most fundamental concepts in the Information Systems (IS) field. Although several alternative models have been proposed to depict the relationship between these concepts, none provide a completely satisfying solution. This situation has caused difficulties in further IS research and practice, especially in assessing the organizational consequences of IS applications such as computer-aided decision-making. To solve this problem, a knowledge-based theory of information is developed, and its application in computer-aided decision-making is illustrated. The development of the theory is presented in Essay 1 and the application is described in Essay 2.; In Essay 1, the Knowledge Based Theory of Information (or KBI theory) is developed to clarify the relationship between data, information, and knowledge. This theory proposes that information, representing a status of conditional readiness for goal-directed activity, is the joint function of data and knowledge. Furthermore, lower-level information is used as input to produce higher-level information. Following this logic, different forms of IS are conceptualized as the embodiments of knowledge domains capable of transforming specific categories of data into information for business operations and decision-making. This theory helps resolve the conflict in previous understanding of the relationship between these constructs. It also provides a new approach to analyzing the organizational consequences of IS.; In Essay 2, an illustration of the KBI theory is based on computer-aided decision-making. This illustration shows how the KBI theory is operationalized within a particular IS context, and how it helps solve the problems in the associated studies. It is realized that although computer-aided decision-making is a major area of IS applications, the key relationship between decision aids and decision performance is not clear. To solve this problem, a model based on the KBI theory is developed, indicating that decision performance (such as decision quality) is directly influenced by decision data, decision knowledge, and their interplay. Other factors such as the decision-maker's characteristics, DSS functionalities, and task environment are mediated by decision data and decision knowledge. A lab experiment is conducted, and the result shows that the new model, based on the KBI theory, provides an improved understanding of computer-aided decision-making. The implications of the model for other DSS research and practice are further analyzed. |
