Business Intelligence Costs And Firm Performance: Evidence From Selected Top Ecowas’ Banks

The impact of business Intelligence costs on the performance of selected top ECOWAS' banks that made Banker Magazine's 2017 list of 1000 Global banks was investigated using descriptive-quantitative research approach and based on economic theoretical framework. Purposeful sampling technique was adopted based on availability of data. Data were extracted from sampled banks' audited annual reports from 2012 to 2016. Six literature-backed hypotheses were developed and tested using OLS multiple regression analysis. The study revealed that: (i) computer hardware cost did not have significant effect on profitability; but, it had significant negative effects on value added and productivity of sampled banks; (ii) software cost had significant negative effect on profitability, and significant positive effects on value added and productivity of sampled banks; (iii) total equity had significant positive effects on profitability, value added, and productivity of sampled banks; (iv) bank age did not have significant effect on profitability; but, it had significant positive effects on value added and productivity of sampled banks; and (v) In cumulative terms, business intelligence cost had significant effect on profitability only; and it is negative. Practically, the study suggests that BI cost does not have significant positive effect on firms' financial performance as it decreased profitability by circa 40%. Theoretically, the importance of economic model in BI studies has being highlighted. Far reaching recommendations have being proposed.