The Effect of Business Intelligence (BI) on Organizational Agility and Innovation Using SEM

Document Type : Original Article

Authors

Department of Management and Entrepreneurship, Faculty of Economics and Entrepreneurship, Razi University, Kermanshah, Iran

Abstract

Introduction: In recent years, Business Intelligence (BI) has become an obvious necessity
and an important element for the survival of any business. This study aimed to investigate the
effect of BI on organizational agility and innovation.
Methods: This research is quantitative in terms of paradigm and descriptive-correlational in terms
of the type of study. The population of this study was the IT experts in Kermanshah hospitals (375
people); they were selected using total number method, but after distributing the questionnaires
among all of them, only 97 complete questionnaires were collected and used for data analysis.
Data were collected by a researcher-made questionnaire. Data analysis was performed by Partial
Least Squares (PLS) structural equation modeling using Smart PLS software.
Results: There was a positive and significant relationship between BI and organizational
agility and innovation in hospitals. In other words, if BI is used in a hospital, it will lead to
organizational agility, which will increase the ability of hospitals to respond to environmental
changes and turn environmental threats into opportunities. Further, BI leads to more
organizational innovation, i.e. the hospital will be able to deliver innovative services to the
target community and gain more market share than its competitors.
Conclusion: Since hospitals are facing increasing pressure to find new ways to compete
and deal with increased operating overhead costs, they need to establish BI to cope with
these changes, which will reduce the costs, increase the speed and efficiency, enhance the
effectiveness, and gain competitive advantage by promoting organizational agility and
innovation.

Keywords