Some determinants of business intelligence adoption using the technology- organisation -environment framework : a developing country perspective

Abstract

The competitive environment today dictates that organisations must utilise their resources effectively and efficiently and also aim to provide their employees with the right information tools. Business Intelligence (BI) systems are known for their ability to increase organisational efficiency and effectiveness. This is achieved by providing decision makers with useful information within the necessary time-frame to support effective decision making. This makes BI systems vital to any organisation. However, BI systems require millions of dollars to develop as well as significant hardware and personnel investment. This can be a major obstacle in developing countries that want to adopt BI successfully. Information System (IS) theories on technology adoption have predominantly focused on developed countries and hence a study is required to examine how emerging technologies such as BI can successfully be adopted in a developing county such as South Africa. This research aimed to determine and describe the factors that affect the adoption of BI in South Africa. The study also attempted to identify issues pertaining to BI adoption by South African organisations. The Technology-Organisation-Environment (TOE) Framework was used as the theoretical basis for studying BI adoption. The results of this study indicate that several factors, namely Information Technology (IT) Infrastructure, Competitive Pressure and Perceived Benefit are important determinants of BI adoption in South Africa. IT Expertise, Lack of Trading Partners and Company Size were found to be statistically insignificant in determining BI adoption decisions. From a practical standpoint, the results could provide useful pointers, both managerial and technological, to organisations in the developing world, for example South Africa, which aspires to adopt BI.