IDEAS home Printed from https://ideas.repec.org/a/tei/journl/v5y2012i3p7-32.html
   My bibliography  Save this article

The Impact of Business Intelligence Tools on Performance: A User Satisfaction Paradox?

Author

Listed:
  • Bernhard Wieder

    () (UTS Business School - Accounting, University of Technology, Sydney, Australia)

  • Maria-Luise Ossimitz

    () (UTS Business School - Accounting, University of Technology, Sydney, Australia)

  • Peter Chamoni

    () (Mercator School of Management, University Duisburg-Essen, Germany)

Abstract

While Business Intelligence (BI) initiatives have been a top-priority of CIOs around the world for several years, accounting for billions of USD of IT investments per annum (IDC), academic research on the actual benefits derived from BI tools and the drivers of these benefits remain sparse. This paper reports the findings of an exploratory, cross-sectional field study investigating the factors that define and drive benefits associated with the deployment of dedicated BI tools. BI is broadly defined as an analytical process which transforms fragmented data of enterprises and markets into action-oriented information or knowledge about objectives, opportunities and positions of an organization; BI tools are software products primarily designed and deployed to support this analytical process (e.g. data warehouse software, data mining software, digital dashboards applications). Building upon DeLoneand McLean’s (1992; 2002; 2003) information systems success model, we develop, test and refine a BI quality and performance model adapted for the specific purpose, application, user group and technology of BI tools. The ultimate performance predictors in this model are user satisfaction and the impact of BI tools on managerial decision quality, both of which are determined by data quality. Partial Least Square (PLS) modeling is used to analyze data collected in a survey administered to IT executives of large Australian Stock Exchange (ASX) listed companies. The results confirm some of the theoretical relationships established in – especially the original – DeLone-McLean model in the specific context of BI. More importantly, the results also confirm the important role of explicit BI management as antecedent of benefits derived from BI tools, and the key impact of data quality on managerial decision making and organizational performance. However, the results also reveal a ‘user satisfaction paradox’: In contrast to the predictions derived from the DeLone-McLean model, organizational performance is negatively associated with user satisfaction with BI tools. Financial performance data collected for ex-post verification of this unexpected result confirm this paradox. We discuss BI-specific interpretations of these unexpected findings and provide avenues for future research.

Suggested Citation

  • Bernhard Wieder & Maria-Luise Ossimitz & Peter Chamoni, 2012. "The Impact of Business Intelligence Tools on Performance: A User Satisfaction Paradox?," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 5(3), pages 7-32, December.
  • Handle: RePEc:tei:journl:v:5:y:2012:i:3:p:7-32
    as

    Download full text from publisher

    File URL: http://ijbesar.teiemt.gr/docs/volume5_issue3/business_intelligence_tools.pdf
    Download Restriction: no

    File URL: http://ijbesar.teiemt.gr/volume5_issue3.php
    Download Restriction: no

    References listed on IDEAS

    as
    1. repec:eee:ijoais:v:9:y:2008:i:3:p:135-153 is not listed on IDEAS
    2. Éric Foley & Manon G. Guillemette, 2010. "What is Business Intelligence?," International Journal of Business Intelligence Research (IJBIR), IGI Global, vol. 1(4), pages 1-28, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tunowski Remigiusz, 2015. "Organization Effectiveness and Business Intelligence Systems. Literature Review," Management and Business Administration. Central Europe, De Gruyter Open, vol. 23(4), pages 55-73, December.
    2. Benita M. Gullkvist, 2013. "Drivers of change in management accounting practices in an ERP environment," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 6(2), pages 149-174, September.

    More about this item

    Keywords

    Business Intelligence (BI); information systems success; data quality; user satisfaction; IT impact analysis;

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tei:journl:v:5:y:2012:i:3:p:7-32. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kostas Stergidis) or () or (). General contact details of provider: http://edirc.repec.org/data/dbikagr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.