Investigating the Effectiveness of Business Intelligence Systems A PLS-SEM Approach

Business Intelligence Systems (BIS) adoption is considered a top priority for many organizations and the promises of BIS are rapidly attracting many others. However, not all BIS initiatives have been successful and previous research address the BIS effectiveness have been somewhat scarce. As such, this study seeks to contribute to the developing body of research into BIS effectiveness. Based on a review of literature grounded on IS success theories, the study develops and empirically validated a comprehensive model of BIS effectiveness, the model suggests BIS effectiveness should be seen as a myriad of an actual benefits and achievements both organization and BIS users receive from using a particular BIS. Following this perspective, by integrating the TAM and The D&M success models, the study model consists of six constructs: information quality, system quality, decision quality, perceived usefulness, decision support satisfaction, and net benefit. The causal relationships among the constructs in the model tested with a field survey collected from 138 BIS users. Based on the PLS-SEM, the results indicate that seven out of eight hypotheses were supported. Our results suggest the degree to which using the BIS would enhance end-user performance is an important factor affecting decision support satisfaction. An increase in the information quality and system quality of the BIS leads to an increase in decision quality. Any net positive effect from BIS information and system characteristics will result in a positive significant impact on users’ perceived usefulness. An increase in decision support satisfaction leads to an increase in the perceived benefits organization and users get from using the BIS