Quantitative Research Review 5 ✓ Solved
QUANTITATIVE RESEARCH REVIEW 5 Quantitative Research Review
The article by Tian et al. (2015) evaluates the ineffectiveness of business intelligence in organizations. Most studies on business intelligence evaluate the technological aspect without analyzing how it can be implemented to achieve success in an organization. The poor relationship between business intelligence and organization makes it essential to examine business intelligence from the organizational perspective by analyzing the relationship between business intelligence and organizational effectiveness.
Methodology
Data was collected using a quantitative survey on senior managers with business intelligence under implementation in their organizations. Organizations where business intelligence had been implemented for at least five years were selected. A total of 587 managers from 363 organizations were selected, with organizations that had more than one department represented by multiple managers to reduce bias (Tian et al., 2015). The study utilized structural equation modeling for data analysis and hypothesis testing, integrating both factor and path analysis.
Findings
The measurement was tested to see if each item was a significant indicator for each model. The model integrated six items such as organizational effectiveness, business intelligence systems' effectiveness, corporate strategy, organizational structure, organizational processes, and organizational culture. Cronbach’s alpha was used to test inconsistencies, indicating a high degree of reliability in the items used for research. The construct's validity was also tested by measuring the average variance extracted, which was greater than the minimum threshold of 0.5. Discriminant validity was evaluated to determine if any construct explained its indicator variance compared to the variance of other indicators (Tian et al., 2015). The discriminant validity test was approved and supported, while convergent validity was assessed using factor and cross-loading of indicators in relation to their construct, indicating that each item represents its distinct latent construct (Tian et al., 2015).
Limitations and Implications of the Study
The research shows that it was conducted from one aspect of implementing business intelligence—specifically from organizations that were already utilizing business intelligence—without considering the impact of different software systems. Additionally, there was potential bias since certain organizations were represented by a single manager, omitting significant aspects of implementing business intelligence. Organizations that had used business intelligence would have matured, making it challenging to assess success solely attributed to the intelligence system. Integration of business intelligence may vary across organizations due to differences in capabilities to integrate new technological innovations.
The research can be replicated to establish the relationship between other business intelligence software and different types of vendors. A better methodology could incorporate diverse organizations across different industries to ensure a balanced sampling technique. The study encourages further research that includes organizations from varied sectors and software versions to provide a comprehensive perspective on the topic. A study examining both organizational outputs would better assess the effectiveness of adopted technology in promoting performance rather than relying exclusively on individual observations, which might be biased. Implementing closed-ended questions would help mitigate divergence in individual perspectives, offering a more objective assessment based on collective data.
Conclusion
In conclusion, the quantitative analysis presented in this study underscores the complexity surrounding business intelligence's impact on organizational effectiveness. It highlights that while technological integration is crucial, the unique organizational contexts must also be considered to truly understand and leverage the benefits of business intelligence.
References
- Tian, X., Chiong, R., Martin, B., Stockdale, R., Arefin, M. S., Hoque, M. R., & Bao, Y. (2015). The impact of business intelligence on organization’s effectiveness: an empirical study. Journal of Systems and Information Technology.
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