The Contribution of Business Intelligence Use and Business Intelligence System Infrastructure Flexibility to Organizational Dynamic Capability.

Abstract

There is growing use of business intelligence (BI) for better decision-making in many organizations. However, there is a lack of empirical studies on BI in academic research. This research investigates BI from an organizational dynamic capability perspective. Organizational dynamic capability is the ability to sense and respond to market opportunities and threats with speed, and BI can be of great use in that sensing role of organizational dynamic capability. Drawing on the dynamic capabilities framework, and literature business intelligence, and IS infrastructure flexibility, we hypothesize that BI use and IS (BIS for the purposes of this paper) infrastructure flexibility are major sources of organizational dynamic capability. A research model was developed to define the relationship of BI and BIS infrastructure flexibility with organizational dynamic capability. Survey data were collected and used to assess the model. The hypotheseses that BI and BIS infrastructure flexibility are significant sources of organizational dynamic capability are supported by the results. This research also empirically examines the weight and significance of BI in the business context of an organization. The results of the research also demonstrate that information technology and systems are of have strategic value for organizations, as they are significant sources of organizational dynamic capabilities and competitive advantages.