An integrated model of business intelligence & analytics capabilities and organizational performance

Abstract

Organizations can leverage business intelligence and analytics (BI&A) to transform themselves through a holistic integration process. Contrary to this proposition, many organizations implement BI&A without aligning or integrating it with organizational strategies. Some implement BI&A in a very ad hoc manner without any plans to leverage it. From a research point of view, we lack an integrated framework that can inform both academics and practitioners about adroit applications with business intelligence and analytics capabilities in organizations. We examine what significant BI&A capabilities organizations need to create value from BI&A. We conceptualize second-order constructs that affect the BI&A value-creation process: innovation infrastructure capability, customer process capability, business-to-business (B2B) process capability, and integration capability. We propose that these higher-order BI&A capabilities influence organizational performance through BI&A effectiveness’s the mediation effect. We developed a questionnaire instrument and collected data from 154 firms in India. Partial least squares analysis provides broad support for our hypotheses. Our contributions include identifying and empirically assessing key BI&A capabilities that directly impact how effectively an organization implements BI&A.