Analysing the Impact of a Business Intelligence System and New Conceptualizations of System Use

24 Pages Posted: 9 Dec 2019

See all articles by Rolando Gonzales

Rolando Gonzales

Esan Graduate School of Business

Jonathan Wareham

ESADE Business School

Date Written: December 5, 2019

Abstract

Purpose – In this study, three models were empirically compared, the DeLone and McLean model, the Seddon model and the Modified Seddon model, by measuring the impact of a business intelligence system (BIS) in companies in Peru. After that, the mediators and dependent constructs were analysed to determine if they were behaving properly (a good level of variance explanation and significant relations with others constructs). The study used a sample of 104 users of the BIS, from companies in several important economic sectors, in a quasi-voluntary context and with six constructs: information quality, system quality, service quality, system dependence (system use), user satisfaction and perceived usefulness (individual impact).

Design/methodology/approach – To interpret the results, the authors used structural equations. The idea was to look for the best fit and explanations for the outcomes. The main difference in these models is that the DeLone and McLean model considers system dependence (system use) as a part of information system success, but in the Seddonmodel, it is a consequence of it.

Findings – The Seddon model seems to show the best fit and explanation for the outcomes. After that, a review of the system use construct was realised, because of its limited variance explained and the few significant relations with other constructs, to improve its explanation power in future research.

Research limitations/implications – It is estimated that the sample includes more than 15 per cent of all the companies that use a BISs in Peru, so the size of the sample is adequate, but it is not entirely random and therefore limits the generalizability of outcomes. Besides that, a sample size that is bigger could be better for the sake of making a more detailed analysis, permitting the use of some items with less power, or the use of another statistical procedure for structural equations such as the Asymptotical Distribution Free, permitting a more detailed analysis (Hair et al., 2006).

Originality/value – Business intelligence (BI), one of the most important components of information systems (IS), is playing a very relevant role in business in this time of high competition, high amounts of data and new technology. Currently, companies feel pressured to respond quickly to change and complicated conditions in the market, needing to make the correct tactical, operational and strategic decisions (Chugh and Grandhi, 2013). BI is one of the most important drivers of the decade (Gartner, 2013). Big companies of IS are creating special units specialised in BI, helping companies become more efficient and effective in daily operations.

Keywords: DeLone and McLean model, Seddon model, System use construct, Impact of a business intelligence system

JEL Classification: C38, C39, C45, C88, F63, F69, L86, O32, O33

Suggested Citation

Gonzales, Rolando and Wareham, Jonathan, Analysing the Impact of a Business Intelligence System and New Conceptualizations of System Use (December 5, 2019). Journal of Economics, Finance & Administrative Science, Vol. 24, No. 48, 2019, Available at SSRN: https://ssrn.com/abstract=3499866

Rolando Gonzales (Contact Author)

Esan Graduate School of Business ( email )

Alonso de Molina 1652
Monterrico
Lima, Surco
Peru

Jonathan Wareham

ESADE Business School

Av. de Pedralbes, 60-62
Barcelona, 08034
Spain

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