Enhancing BI Systems Application Through the Integration of IT Governance and Knowledge Capabilities of the Organization

Abstract

Over years, research in Management Information Systems (MIS) has resulted in significant implications for organizations in a wide variety of areas by using socio-technical perspective, which has helped to deliver more business focused solutions. This study reports the results of an empirical examination of the effect of IT governance framework based on COBIT and Organizational Knowledge Pillars in enhancing the IT Governance framework (Business / IT Strategic alignment, Business value delivery, risk management, Resource management, performance measurement) to enhance the business intelligence application and usability within the organization. Quantitative method is adopted for answering the research questions. A questionnaire was used for data collection after contacting several companies, in addition confirmatory factor model and structural equation model were developed and tested and the overall results of the empirical investigation supported the general framework. Using confirmatory factor analysis techniques, the effects of the combination between IT governance factors seen by ITGI and organizational knowledge pillars of the firm on BI Systems application in it were tested and confirmed and the models were also verified. Several statistical methods were used for data analysis; moreover different statistical tools as software packages were employed such as SPSS 17 and EQS 6.1. The study proposes that knowledge management (KM) and IT Governance framework are vital organizational abilities that support business intelligence application; it also observes that combination of IT governance framework with organizational knowledge within the firm can enhance the organization’s BI system application and usability, and its goal is to advance the understanding of the relationships among these factors. The study develops and tested two main hypothesizes: (1) IT Governance framework supports business intelligence application. (2) Organizational knowledge, in turn, leads to support business intelligence application.