Measuring the value of online databases: a case study to validate an ROI model

Abstract

PurposeThe return on investment (ROI) model is a tool used to measure the financial benefits and costs of an investment, in this case, the investment in digital library resources. By applying this model to the AAU digital library resources, the study seeks to determine whether these resources are providing sufficient value for the investment made in them.Design/methodology/approachThe proposed ROI model has two distinct phases and utilizes two different sets of data to calculate the return on investment for a database subscription. In Phase I, the ROI is calculated based on the total number of downloads of full-text articles from the database during the academic year 2019–2020. This information is used to determine the financial returns of the database subscription costs. In Phase II, the ROI is calculated by examining the citations drawn from the Scopus database on a sample of 30 funded research projects for the College of Engineering during the year 2019. These data are used to determine the impact of the database subscription on research output and its contribution to the success of the College of Engineering's research projects. The two phases of the proposed ROI model aim to provide a comprehensive understanding of the value of the database subscription and its impact on both financial returns and research output.FindingsThe findings of the study indicated different results between Phase 1 and Phase 2 of the study. The positive ROI in Phase 1 suggests that the investment in online databases has a good return for the AAU, as they are gaining almost a dollar for every dollar spent. However, the negative ROI in Phase 2 is concerning. It suggests that the investment in the IEEE database is not generating a positive return for the AAU and may even be costing the institution money. Overall, these findings highlight the importance of measuring ROI in academic libraries, particularly in Arab countries where resources may be limited. By understanding the impact of library investments on institutional outcomes, libraries can make informed decisions about where to allocate their resources and how to optimize their services to best serve their communities.Research limitations/implicationsThe findings of the current study were based on data collected from a specific sample, therefore, the findings may not be generalized to other academic libraries. A similar study with larger and more diverse samples can help to validate and extend the results of this study.Originality/valueThe findings of the study provide evidence that the proposed ROI model can be effectively applied in Arab countries and academic libraries in the Arab world, this could encourage more institutions in the region to adopt this model for evaluating their investments and projects. The study may also guide how to adapt the model to the specific cultural and organizational contexts of Arab countries.