The Effects of Business Intelligence Features on Internal and Competitive Advantage: A Resource-Based View

• In Event: Short Paper Presentations

Abstract

With the growth of detailed operational and customer data and growing sophistication of data mining techniques, organizations are spending millions of dollars implementing business intelligence (BI) systems to capitalize on this data and, hopefully, improve their internal operations and understanding of the market. These BI systems provide management control systems (MCS) capabilities to organizations. However, the link between information technology implementation and organizational benefits may not be direct, and the impact of BI on internal and competitive benefits is not well understood. Consistent with the resource-based view of the firm, we propose that BI intelligence features and integration with other information technology influence internal benefits, which in turn influence competitive benefits. Furthermore, we argue that BI systems have capabilities that provide organizations with benchmarking capabilities that may directly influence competitive benefits. Our study also investigates the effect of corporate culture on benefits. We empirically test our model using PLS with survey data collected from 175 organizations around the world and find that our hypotheses are largely supported.

Authors

• Nicole Forsgren Velasquez, Utah State University

• Rajiv Sabherwal, University of Arkansas

• Alexandra Durcikova, The University of Oklahoma