The effect of organisational absorptive capacity on business intelligence systems efficiency and organisational efficiency

Abstract

PurposeBusiness intelligence (BI) systems (i.e. technology and procedures that transform raw data into useful information for managers to enable them to make better and faster decisions) have enormous potential to improve organisational efficiency. However, given the high expenditure involved in the deployment of these systems, the factors that will enable their successful integration should be thoroughly considered and assessed before these systems are adopted. Absorptive capacity (ACAP) is the ability of organisations to gather, absorb and strategically influence new external information, and as such, there is a strong theoretical connection between ACAP and BI systems. This research aims to empirically investigate the relationship between the dimensions underpinning ACAP (i.e. acquisition, assimilation, transformation and exploitation) and whether and how they affect the efficiency of BI systems, which, in turn, can enhance organisational efficiency.Design/methodology/approachThis study formulates five hypotheses addressing the effect of ACAP dimensions on BI systems efficiency and the effect of BI systems efficiency on organisational efficiency. It synthesises previous qualitative work and current research to derive sets of measures for each of the key constructs of the study. It follows a quantitative methodology, which involves the collection of survey data from senior managers in the telecommunications industry and the analysis of the data using partial least squares – structural equation modelling (PLS-SEM).FindingsThe results of the analysis confirmed the validity of the constructs and proposed measures and supported all five hypotheses suggesting a strong positive relationship between the ACAP dimensions, acquisition, assimilation, transformation and exploitation and the efficiency of BI systems and a strong effect of BI systems efficiency on organisational efficiency.Practical implicationsThe study offers a comprehensive model of ACAP and BI systems efficiency. The set of measures that underpin these constructs could help researchers understand how ACAP dimensions are practically implemented and could contribute to their efforts to develop ACAP measurement instruments. At the same time, the model can help managers assess the readiness of their firms to adopt BI systems and identify which areas should be further developed, before committing to the substantial financial investment associated with BI systems. It also provides a set of practical solutions that could be implemented to enable a more robust ACAP and support a better integration of BI systems.Originality/valueFollowing an empirical approach, this study refines one’s theoretical and practical understanding of ACAP as an organisational dynamic capability and its dimensions; it provides an account on how each dimension affects different aspects of BI systems efficiency, which, in turn, may contribute to the improvement of organisational efficiency. Moreover, the study reframes ACAP measures as a set of requirements that can be practically assessed and followed before attempting to purchase BI systems.

A Design Framework for Novice Using Grounded Theory Methodology and Coding in Qualitative Research: Organisational Absorptive Capacity and Knowledge Management

“…The resulted number of categories appeared after conducting the process of open coding: (19) distinct categories; these were classified from a total of (57) as shown in Figure 8 below, codes also extracted from several lines and direct quotes from the lines of the transcript.

Figure 8.Open coding result diagram (Al-Eisawi, 2019).

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“…Next, configurations of categories in which will enable the researcher to gain a deeper understanding of core detailed divisions of data. Next, the categories were assigned to relevant themes, finally main theories were extracted to validate the understanding of categories and themes.

Figure 3.Diagram showing coding outcomes in GTM (Al-Eisawi, 2019).

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“…The research example explored in the current study is required to be an imprecise type of organizational control that requires further investigation. The grounded theory approach in the current research was used to guide the research questions extraction for the final stage of the research model building (Al-Eisawi et al, 2020). However, theory extraction was not the main aim of the analysis.…”

A New Contemporary Profession as Game Boosters: The Behavioural Emergence of Intellectual Opportunism

“…Social networks' performance, associated with game boosters' social behaviour, utilises OMSNs, even though they behave adversely or shirk their responsibilities [4,15,36,69]. Meanwhile, trustworthiness becomes crucial to building the relationship between the game booster and the users demanding higher- I had to play the games to boost others' scores illegally It is no big deal to enhance users' levels as no one gets hurt It is online gaming's fault that they were taken advantage of I was only playing games that others required me to do all the time I would have played to increase the game levels; the legitimate ones, anyway Efficiency; Al-Eisawi et al, [82]; Wei et al [30] Expert-level enhancer service quality Boosting organisation efficiency Boosting supply chain efficiency Seller and reseller reaction speed Trustworthiness; Gefen et al [70]; Sirdeshmukh et al [26] OMSNs for online games are honest OMSNs care about expert-level demands OMSNs are not opportunistic OMSNs provide good services OMSNs are predictable OMSNs are trustworthy OMSNs know their market OMSNs; Hsiao [49]; Lafuente et al [72] The number of contracted game cooperations and innovation agreements The time spent game networking compared to that established in the agreement…”

Is supplier involvement always beneficial for financial performance? The roles of ambidextrous innovations and product smartness

“…Knowledge application involves applying acquired knowledge into business processes (Rindfleisch and Moorman, 2001;Yli-Renko et al, 2001). The acquired knowledge can be applied to facilitate innovations and improve performance (Huo et al, 2019;Al-Eisawi et al, 2020). Furthermore, Grant (1996) distinguishes the speed and scope of knowledge application.…”