Socio-Technical Factors Influencing Business Intelligence Adoption in SMEs

Abstract

—This study explores the major challenges that Small and Medium-sized Enterprises (SMEs) encounter when adopting Business Intelligence Systems (BIS), particularly in complex sociopolitical environments, such as Libya. It aims to understand how internal constraints, like limited financial capacity, resistance to change among management, and weak knowledge-sharing practices, combined with external socio-political factors, influence BIS adoption in developing economies. A cross-sectional survey approach was employed, targeting 297 SME owners and managers in Libya. Data was collected using a structured questionnaire and analyzed with SmartPLS to examine the relationships among key variables: facilitating conditions, information quality, perceived ease of adoption, perceived usefulness, and social influence. The findings highlight that social influence, especially from peers and industry experts, plays a crucial role in shaping SMEs’ adoption behavior. Moreover, the quality of information emerged as a significant determinant in the successful adoption of BIS. The study offers both practical and policy-level insights, suggesting that with the right support, BIS adoption can significantly enhance SMEs’ competitiveness, decision-making capabilities, and operational efficiency.