BUSINESS INTELLIGENCE CAPABILITY, ORGANISATIONAL CAPABILITY, COMPLEMENTARY RESOURCES AND PERFORMANCE OF FIRMS LISTED AT THE NAIROBI SECURITIES EXCHANGE

ABSTRACT

While the Business intelligence (BI) initiative has been a top priority of Chief Information Officers around the world for several years and accounting for billions of dollars in capital expenditure, the academic research on the actual benefit derived from this investment remains sparse. Available literature on how insights triggered by BI are transformed into profitable business learning is vague and fragmented. Even when the benefits have been identified, it is difficult to measure because of their indirect and delayed effects on business performance. Hence, the main objective of this study was to determine the relationship between BI capability, organisational capability, complementary resources and performance of firms listed at the NSE. The study used interdisciplinary theories to achieve the research objective, namely; Information Systems Capability Theory, Organisational Learning Theory and Knowledge Management Theory. Furthermore, the study was performed using a mixed methods research methodology. Through a cross-sectional survey, the researcher collected data using a structured questionnaire for quantitative strand of the study. The study used structural equations modeling technique (Partial Least Squares approach- SEM-PLS) to analyse quantitative data and validate the developed research model. Thematic analysis aided by Atlas.ti version 8 software was applied to analyse qualitative data. Findings of quantitative and qualitative strands of the study were triangulated based on the convergent parallel design. The results indicated technical dimension related factors; quality of data sources, user access, interactive capability and vendor selection, human capital related factor; knowledge management, organization dimension related factors, service level agreement and risk management have positive and significant effect on performance. However, the relationship is moderated by organisational capability related factors; customer management capability, process management capability and performance management capability. The relationship is also mediated by complementary resources that comprise BI champions, culture, decision making process and organisation strategy. Findings from this study also demonstrated that the combined effect BI capability, organisational capability and complementary resources on firm performance is significantly greater than that of the individual effect. The study contributed to theory by building a framework for BI assessment, including factors that significantly lead to improved performance. The results of this study also provide new insights into the existing business intelligence literature researchers can employ to aggrandize knowledge. The study proposed the use of longitudinal study capture to delayed BI benefits. The importance of management to exploit value from unstructured data is highlighted. Furthermore, the study suggests directions for future research with implications for academia to validate emerged factors using quantitative approach.