Empirical study of business intelligence systems and their influence on innovation performance

Abstract

This study aims to empirically measure and test a conceptual model of the magnitude of the influence of organizational culture, IT Maturity Level, and data quality on the successful implementation of business intelligence systems and their implications for innovation performance. The areas of our empirical study through the hypotheses testing were: the estimation of the effect of business intelligence on financial performance; the impact of business intelligence on innovation; the effect of business intelligence on brand success; the impact of innovation on brand success; the impact of innovation on financial performance. The study sample included 4 commercial banks and 58 conventional commercial banks in the category of national private commercial banks of Indonesia, hence, the total sample in this study was 62 banks. This study used non-probability sampling techniques with purposive sampling techniques at conventional commercial banks in Indonesia. The data analysis method uses Covarian Based-Structural Modeling (CB-SEM) with programming tools that support primary data analysis in Lisrell 8.5. The results of this study found that the higher the level of implementation of organizational culture, IT Maturity Level, and data quality, the higher the success rate of implementing business intelligence systems which have implications for improving innovation performance, while the higher the level of application of business intelligence systems, the higher the level of innovation performance. The implementation of organizational culture is the factor that has the most significant influence on the success of implementing business intelligence systems compared to other factors studied in this study.