Business intelligence adoption among small apparel retailers in KwaZulu-Natal

Abstract

Business intelligence (BI) can assist businesses with the analysis of information to make better decisions to improve business performance; however, a lack of research with respect to the adoption of BI tools specifically in the SMME apparel sector has been observed. Developments in information technology (IT) have led to an increase in competitiveness among providers, resulting in a plethora of offerings for customers to choose from. As such, businesses are operating in evolving and complex environments where business intelligence systems (BIS) have become essential. The aim of this study was to establish the factors that influence the adoption of BI by micro-small apparel retailers in KwaZulu-Natal. The study was a cross-sectional survey that sampled 132 apparel business owners who were selected using purposive sampling. A survey questionnaire was used to collect the data. The data was analyzed using the Statistical Package for Social Sciences (SPSS) Version 13.0. This study found that the main inhibitors to the adoption of BI systems among small apparel retailers are cost-related. However, an interesting finding was that although cost had a negative relationship to adoption in the results, most of the respondents still indicated that they were able to make financial plans to adopt BI. The study recommends that small apparel business owners prioritize the adoption of BI as a tool for business operations. The adoption of such tools would have a net positive effect on the operations of such businesses.