The relationship of business intelligence systems to organizational performance benefits: A structural equation modeling of management decision making

Business Intelligence is a major expenditure in many organizations and necessary for competitive advantage. These expenditures do not result in maximum benefits for the organization if the information obtained from the Business Intelligence System (BIS) is not used in the management decision-making process. This quantitative research study used an exploratory model developed by Popovic, Hackney, Coelho, and Jaklic (2012) to examine the factors influencing use of information from the BIS in business processes for decision making and a model developed by Elbashir, Collier, and Davern (2008) for measuring organizational performance benefits from BISs. Survey responses were collected from 259 business and technology managers in the United States. Managers were asked to respond to survey items taken from Popovic et al.'s and Elbashir et al.'s surveys. Consistent with the DeLone and McLean's (2003) model for information system success, this research used partial least squares structural equation modeling (PLS-SEM) and found that use of information from BISs in business processes resulted in organizational performance benefits. The determinants responsible for explaining the variance in organizational performance benefits were business supplier/partner relationship benefits, internal process efficiency benefits, and customer intelligence benefits. Analytical decision-making culture and information content quality were the significant factors contributing to use of information from the BIS. Data integration and analytical capability were the factors contributing to BIS maturity. BIS maturity impacted information content quality and information access quality.