A Statistical Analysis of Business Intelligence Acceptance by SMEs in the city of Tshwane Republic of South Africa

Abstract

Business intelligence (BI) technologies have attracted attention from academics and entrepreneurs, enterprise mangers are starting to employ them to make informed decisions for proper management. While several studies have been conducted on the need for BI in small and medium enterprises (SMEs), they have concentrated on performance and adoption and give insights and approaches, suitable for large-scaled enterprises, but insufficient for SMEs. In this study, BI acceptance is examined within South Africa’s SMEs in the City of Tshwane (n= 161). Perceived benefits and challenges are analysed in their efforts to adopt BI. By classifying BI acceptance into three categories, multinomial logistic regression is used. We build a refined model on the considerations of the supported hypotheses within, technological, organizational, environmental and behavioural factors. Supported hypotheses are aligned to a respective BI characteristic. Application of the refined model will contribute towards providing guidance to SME owner-managers in acceptance of BI.

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