Business Intelligence Success: An Empirical Evaluation of the Role of BI Capabilities and the Decision Environment

Abstract

Since the concept of business intelligence (BI) was introduced in the late 1980s, many organizations have implemented BI to improve performance but not all BI initiatives have been successful. Practitioners and academicians have discussed the reasons for success and failure, yet, a consistent picture about how to achieve BI success has not yet emerged. The purpose of this dissertation is to help fill the gap in research and provide a better understanding of BI success by examining the impact of BI capabilities on BI success, in the presence of different decision environments. The decision environment is a composition of the decision types and the way the required information is processed to aid in decision making. BI capabilities are defined as critical functionalities that help an organization improve its performance, and they are examined in terms of organizational and technological capabilities. An online survey is used to obtain the data and partial least squares path modeling (PLS) is used for analysis. The results of this dissertation suggest that all technological capabilities as well as one of the organizational capabilities, flexibility, significantly impact BI success. Results also indicate that the moderating effect of decision environment is significant for quantitative data quality. These findings provide richer insight in the role of the decision environment in BI success and a framework with which future research on the relationship between BI capabilities and BI success can be conducted. Findings may also contribute to practice by presenting information for managers and users of BI to consider about their decision environment in assessing BI success.

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