Abstract:
All organizations face challenges, but small and medium-sized businesses that rely on outdated technology often face the most. To resolve problems, businesses implement and rely on business intelligence by managing information technology systems. The main objective of this study was to determine the factors that affect the adoption of Business Intelligence Systems (BIS) in Small and Medium Enterprises (SME) in Nairobi County.
The study employed a descriptive methodology to determine the factors that apply to the development of a model that leads to the adoption of BIS. This study proposes a conceptual framework that analyzes the potential determinants of BIS adoption in Kenya's SME sector. The three theories that served as the foundation for this study were the Technology Organization Environment, the Technology Acceptance Model, and the Unified Theory of Adopting and Using Technology.
This study advocated a conceptual framework with four factors: technological, organizational, environmental, and behavioral in line with previous studies as they have an impact on BIS adoption. Exploratory Factor Analysis, Confirmatory Factor Analysis, and Structural Equation Modelling were employed to develop a framework that will enhance BIS adoption in SMEs.
The proposed framework offers a thorough and organized evaluation of the variables influencing the adoption of BI systems over the preceding two decades. According to the review's findings, there has been a tremendous advancement in BI research over the past ten years that addresses the four primary aspects that influence adoption: technological, organizational, environmental, and behavioral. BI adoption success and success determinants, however, still have numerous gaps.
The study suggests that managers should acknowledge two ways in which employees can utilize implemented BIS: (1) repetitive and standardized use, and (2) innovative and novel use. While standard use improves firm performance, SMEs should encourage innovative use to fully unlock the potential of BIS and expand the business references of solution providers.
