Predictors and Outcome of Business Intelligence System Implementation: A Perspective of Manufacturers in Malaysia

As information technology advances from time to time, Business Intelligence (BI) is becoming a powerful tool in decision making process in enterprise environment. A good decision support instrument should assist decision makers in planning and arranging good strategy to achieve company goals in today's dynamic business environment. This purpose of this study is to identify the predictors and outcome of BI system implementation for manufacturers in a developing country, Malaysia. Data was collected via questionnaire from manufacturing companies in Malaysia and Partial Least Square (PLS) of Structured Equation Modeling (SEM) was used to analyze the data collected based on the hypotheses derived from the research framework. Interestingly, technology compatibility, top management support, BI related cost and vendor accessibility are crucial predictors affecting the BI system adoption for Malaysian manufacturers. In addition, the implementation of BI has significant impact on firm performance.

[1]  R. Kaplan,et al.  The balanced scorecard--measures that drive performance. , 2015, Harvard business review.

[2]  Binshan Lin,et al.  Internet-based ICT adoption: evidence from Malaysian SMEs , 2009, Ind. Manag. Data Syst..

[3]  Veda C. Storey,et al.  Business Intelligence and Analytics: From Big Data to Big Impact , 2012, MIS Q..

[4]  Antti Lönnqvist,et al.  Measurement of Business Intelligence in a Finnish Telecommunications Company , 2005, ECKM.

[5]  Wahidah Husain,et al.  A Study on Implication of Adopting E-Business Technology by SMEs , 2012 .

[6]  Marlei Pozzebon,et al.  Managing sustainability with the support of business intelligence: Integrating socio-environmental indicators and organisational context , 2009, J. Strateg. Inf. Syst..

[7]  Chieh-Yu Lin,et al.  RFID technology adoption and supply chain performance: an empirical study in China's logistics industry , 2009 .

[8]  Detlef D. Nauck,et al.  Real Time Business Intelligence for the Adaptive Enterprise , 2006, The 8th IEEE International Conference on E-Commerce Technology and The 3rd IEEE International Conference on Enterprise Computing, E-Commerce, and E-Services (CEC/EEE'06).

[10]  Alain Yee-Loong Chong,et al.  What drives Malaysian m-commerce adoption? An empirical analysis , 2009, Ind. Manag. Data Syst..

[11]  Detmar W. Straub,et al.  Structural Equation Modeling and Regression: Guidelines for Research Practice , 2000, Commun. Assoc. Inf. Syst..

[12]  James Y. L. Thong,et al.  An Integrated Model of Information Systems Adoption in Small Businesses , 1999, J. Manag. Inf. Syst..

[13]  Mark A. Fuller,et al.  Clarifying the Integration of Trust and TAM in E-Commerce Environments: Implications for Systems Design and Management , 2010, IEEE Transactions on Engineering Management.

[14]  Fred E. Fiedler,et al.  Reading 20 The Contingency Model: A Theory of Leadership Effectiveness , 2008 .

[15]  Robert Winter,et al.  Towards The Measurement Of Business Intelligence Maturity , 2013, ECIS.

[16]  Graham Hubbard,et al.  Measuring organizational performance: beyond the triple bottom line , 2009 .

[17]  J. P. Sánchez-Ballesta,et al.  A Meta-Analytic Vision of the Effect of Ownership Structure on Firm Performance , 2007 .

[18]  Celina M. Olszak,et al.  Approach to Building and Implementing Business Intelligence Systems , 2007 .

[19]  Frédéric Thiesse,et al.  The rise of the “next‐generation bar code”: an international RFID adoption study , 2011 .

[20]  Donald J. McCubbrey,et al.  Management Information Systems for the Information Age , 1997 .

[21]  J. Rho,et al.  Determinants of E-Government Assimilation in Indonesia: An Empirical Investigation Using a TOE Framework , 2011 .

[22]  S. Zailani,et al.  Determinants of RFID Adoption in Supply Chain among Manufacturing Companies in China: A Discriminant Analysis , 2009 .

[23]  Hans-Georg Kemper,et al.  Management Support with Structured and Unstructured Data—An Integrated Business Intelligence Framework , 2008, Inf. Syst. Manag..

[24]  Siew Fan Wong,et al.  Understanding business intelligence adoption and its values : some examples from Malaysian companies , 2011 .

[25]  Samina Azam,et al.  CAUSATIVE FACTORS PUSHED WOMEN INTO DAR-UL-AMAN: A CASE STUDY OF DAR-UL-AMAN DISTRICT GUJRAT, PAKISTAN , 2013 .

[26]  Aditya Sharma,et al.  Strategic and Institutional Perspectives in the Adoption and Early Integration of Radio Frequency Identification (RFID) , 2007, 2007 40th Annual Hawaii International Conference on System Sciences (HICSS'07).

[27]  Paul Hawking,et al.  Business Intelligence (BI) Critical Success Factors , 2010 .

[28]  Thurasamy Ramayah,et al.  Understanding Consumer Intention with Respect to Purchase and Use of Pirated Software , 2011, Inf. Manag. Comput. Secur..

[29]  O. A. Sawy,et al.  Digital business strategy: toward a next generation of insights , 2013 .

[30]  Mustafa C. Ungan.  Factors affecting the adoption of manufacturing best practices , 2004 .

[31]  N. Zulkifli,et al.  Information Technology Adoption in Small and Medium-sized Enterprises; An Appraisal of Two Decades Literature , 2011 .

[32]  D. Siegel,et al.  Assessing the Relationship between Human Capital and Firm Performance: Evidence from Technology–Based New Ventures , 2007 .

[33]  Intan Salwani Mohamed,et al.  E-Commerce And Value Creation: Empirical Evidence In Malaysia Tourism Sector , 2008 .

[34]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[35]  Thompson S. H. Teo,et al.  Adopters and non-adopters of e-procurement in Singapore: An empirical study , 2009 .

[36]  Antti Lönnqvist,et al.  The Measurement of Business Intelligence , 2005, Inf. Syst. Manag..

[37]  G. Prem Premkumar,et al.  A Meta-Analysis of Research on Information Technology Implementation in Small Business , 2003, J. Organ. Comput. Electron. Commer..

[38]  Tiago Oliveira,et al.  Literature Review of Information Technology Adoption Models at Firm Level , 2011 .

[39]  Surajit Chaudhuri,et al.  New frontiers in business intelligence , 2011, Proc. VLDB Endow..

[40]  William Yeoh,et al.  Critical Success Factors for Business Intelligence Systems , 2010, J. Comput. Inf. Syst..

[41]  Cheng-Wu Chen,et al.  Linking the balanced scorecard (BSC) to business management performance: A preliminary concept of fit theory for navigation science and management , 2010 .

[42]  Timothy M. Devinney,et al.  Measuring Organizational Performance as a Dependent Variable: Towards Methodological Best Practice , 2008 .

[43]  Jiann-Chyuan Wang,et al.  External technology acquisition and firm performance: A longitudinal study , 2008 .

[44]  David G. Sirmon,et al.  Contingencies within Dynamic Managerial Capabilities: Interdependent Effects of Resource Investment and Deployment on Firm Performance , 2009 .

[45]  Anna Sidorova,et al.  Business intelligence success: The roles of BI capabilities and decision environments , 2013, Inf. Manag..

[46]  Efraim Turban,et al.  Business Intelligence: Second European Summer School, eBISS 2012, Brussels, Belgium, July 15-21, 2012, Tutorial Lectures , 2013 .

[47]  C. Goldzweig,et al.  Costs and benefits of health information technology: new trends from the literature. , 2009, Health affairs.

[48]  Dara G. Schniederjans,et al.  Successful ERP implementation: an integrative model , 2013, Bus. Process. Manag. J..

[49]  Beverley Jackling,et al.  Board Structure and Firm Performance: Evidence from India's Top Companies , 2009 .

[50]  Celina M. Olszak,et al.  Interdisciplinary Journal of Information, Knowledge, and Management Approach to Building and Implementing Business Intelligence Systems , 2022 .

[51]  Agha Muhhamad Ali Khan,et al.  Drivers and barriers to business intelligence adoption: a case of Pakistan , 2010 .

[52]  M. Fleischer,et al.  processes of technological innovation , 1990 .

[53]  Kenneth L. Kraemer,et al.  The Process of Innovation Assimilation by Firms in Different Countries: A Technology Diffusion Perspective on E-Business , 2006, Manag. Sci..

[54]  Freddie Acosta,et al.  Impact of Adopting Enterprise Resource Planning Systems by Commercial Organizations in Kenya , 2011 .

[55]  Bunjong Piyatamrong,et al.  Business Intelligence in Thailand's Higher Educational Resources Management , 2010 .

[56]  M. R. Osman,et al.  ERP Systems Implementation in Malaysia: The Importance of Critical Success Factors , 2006 .

[57]  M. Goh,et al.  Performance measurement in supply chain entities: balanced scorecard perspective , 2009 .

[58]  Rosnah Idrus,et al.  Pre-considered Factors Affecting ERP System Adoption in Malaysian SMEs , 2010, 2010 12th International Conference on Computer Modelling and Simulation.

[59]  Robert M. Davison,et al.  SME adoption of IT: the case of electronic trading systems , 2006, IEEE Transactions on Engineering Management.

[60]  Nabeel A. Y. Al-Qirim,et al.  An Empirical Investigation of an e-commerce Adoption-Capability Model in Small Businesses in New Zealand , 2005, Electron. Mark..

[61]  Woan-Yuh Jang,et al.  Determinants of the Adoption of Enterprise Resource Planning within the Technology-Organization-Environment Framework: Taiwan's Communications Industry , 2008, J. Comput. Inf. Syst..

[62]  Li-Yen Shue,et al.  Business intelligence approach to supporting strategy-making of ISP service management , 2008, Expert Syst. Appl..

[63]  George Ioannou,et al.  Implementing the Balanced Scorecard in Greece: a Software Firm's Experience , 2004 .

[64]  Margaret A. Peteraf.  The cornerstones of competitive advantage: A resource‐based view , 1993 .

[65]  Ying-Feng Kuo,et al.  Towards an understanding of the behavioral intention to use 3G mobile value-added services , 2009, Comput. Hum. Behav..

[66]  Matteo Golfarelli,et al.  Beyond data warehousing: what's next in business intelligence? , 2004, DOLAP '04.

[67]  Frank Wiengarten,et al.  Exploring the Important Role of Organizational Factors in it Business Value: Taking a Contingency Perspective on the Resource‐Based View , 2013 .

[68]  Hsi-Peng Lu,et al.  Adoption of e-government services: an empirical study of the online tax filing system in Taiwan , 2013, Online Inf. Rev..