A Study on BI System: A Moderating Role of Organizational Learning

Abstract

Organizational performance significantly depends on business intelligence. Business intelligence (BI) converts raw data into meaningful and useful information that managers use to make quick and improved assessments. Before implementing business intelligence in their firms, the manager must thoroughly evaluate it. Absorptive capacity (ACAP) and BI systems are closely related. We assessed the impact of the subdimensions of ACAP “acquisition, assimilation, transformation, and exploitation” on BI, Impact of BI on firm performance, and the moderating role of organizational learning. We adopted the quantitative method that comprises gathering secondary data from middle managers in Karachi’s banking industry and analyzing the data using partial least squares-structural equation modeling (PLS-SEM). The study found the dimensions of ACAP “acquisition, assimilation, transformation, and exploitation” positively affect the BI system. The BI system promotes firm performance. We also found organizational learning insignificantly moderates BI and firm performance. Managers can use the model to determine which areas of their company need more development before making the major financial commitment toward the BI system and to determine whether their company is ready to adopt it.

Keywords

• business intelligence system
• absorptive capacity
• acquisition
• assimilation
• transformation
• exploitation