Elucidating the determinants of business intelligence adoption and organizational performance

Abstract

This research is one of the first few to investigate the adoption and usage of business intelligence among SMEs in the context of developing countries, in this case Thailand. Based on the three-pronged approach it proposes a comprehensive model that integrates the technology-organization-environment framework and the balance scorecard approach in order to better understand the degree of influence that each factor has on the adoption of business intelligence as well as the organizational performance among SMEs in Thailand. The results of the structural equation modeling show that compatibility, technology readiness, top management support and competitive pressure posited a positive relationship towards business intelligence adoption. The adoption of business intelligence had a positive effect on internal process and learning and growth in terms of organizational performance. A multi-group analysis was also performed focusing on firm maturity and sectors to understand the behavior towards business intelligence as well as organizational performance. Discussions and conclusions including theoretical and practical implications are also presented.