DOES THE ADOPTION OF BUSINESS INTELLIGENCE AFFECT ENTERPRISE RISK MANAGEMENT? EVIDENCE FROM JORDAN

Abstract

Business intelligence (BI) adoption is still rudimentary in developing countries like Jordan. Considering the worth of BI systems for companies, this study aimed to identify the factors that may affect the adoption intention of companies' BI systems. Factors affecting BI adoption decisions and their impact on enterprise risk management were examined in this study, using a model comprising unaddressed and key factors associated with BI adoption. Data were obtained using questionnaires distributed to 22 Jordanian insurance companies that adopted BI. Partial least squares path modeling was used in the analysis involving 153 responses to identify factors related to BI adoption. The results showed that BI adoption significantly and positively affected the relative advantage, technological infrastructure, top management support, and competitive pressure and was significant and negative to complexity. BI adoption was positive for enterprise risk management. BI systems could increase the quality of decisions while decreasing the associated risk. Managers must be aware of the value-added relative advantage of BI adoption in their organizations and include the system in the organization. Also, policymakers of insurance companies in Jordan could benefit from the study results in increasing BI use and expansion.