Understanding the behavioral intention to adopt business intelligence and analytics by Philippine MSMEs

• Main Author: Simon, Ronel B.
• Format: text
• Language: English
• Published: Animo Repository 2022
• Subjects: Small business—Technological innovations; Computer Sciences
• Online Access: https://animorepository.dlsu.edu.ph/etdd_infotech/4; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1003&context=etdd_infotech
• Institution: De La Salle University

Business intelligence and analytics (BI&A) systems have provided large organizations with the capability to make effective and timely decisions. In the same way, MSMEs can use this technological innovation for management, revenue-generating, and operating processes. For instance, MSMEs in the retail sector can use BI&A for sales forecasting to understand buying seasonality for supply optimization and stocking decisions. Using BI&A for market basket analysis is also a potential approach that would aid MSMEs with store layout strategies and marketing promotions. However, small enterprises lag behind large enterprises despite the availability of relevant BI&A technologies. This study aims to develop and test a framework of factors associated with BI&A adoption intention by MSMEs in the Philippines. The proposed research framework presented in this work is based on the concepts of the technology-organization-environment framework and personal innovation in the domain of IT. Data was gathered from 244 MSMEs in the manufacturing, wholesale and retail, accommodation, and food services sectors. A total of 202 valid responses from owners and managers were used for descriptive and multivariate data analysis. Analysis was carried out using partial least squares structural equation modeling in SmartPLS v3. The results show that relative advantage, complexity, top management support, competitive pressure, and innovativeness as the significant determinants of MSME’s intention to adopt BI&A. Of these significant factors, personal innovativeness and relative advantage exert the strongest influence on the intention of MSME owners and managers to adopt BI&A. The study contributes to the information systems and business literature by providing a validated framework for future studies focusing on emergent technology for small businesses. This work also provides further understanding of the differences between adopters and non-adopters of innovations. Moreover, this results of this study also provides valuable insights for strengthening the IT capability programs of the government for MSMEs in the country.