Identification and classification of organizational level competencies for BI success

Maryam Khalilzadeh Salmasi, Alireza Talebpour, Elaheh Homayounvala


Business intelligence is a technology-oriented solution that businesses need to
survive in today’s competitive and constantly changing market. To gain the benefits of BI systems, it is important to evaluate, assess, and improve factors that have an influence on BI success. Organizational competencies can provide answers to the question of how companies could gain more benefits from BI systems. While investment in BI systems is increasingly growing, measures to evaluate effective organizational competencies leading to BI success are
gaining more importance. Therefore, this research identified a number of effective organizational competencies that contribute to BI success. Using the developed questionnaire for determining the effect of organizational level success on BI success, the research data was gathered for the study. A chi-square test confirmed the effectiveness of all nineteen identified
competencies. Then, an exploratory factor analysis (EFA) was carried out on the data in order to identify the underlying dimensions. In addition, competencies were grouped into six categories, namely data management, information system/information technology (IS/IT) development, financial resources, relationship management, IS strategy and human capital policies. As a result, these competencies can be used as a measure to evaluate an organization’s
status in holding some of the effective factors for BI success.


BI success, business intelligence, exploratory factor analysis, organizational level competencies

Full Text:



Abzaltynova, Z., & Williams, J. (2013).

Developments in Business Intelligence

Software. Journal of Intelligence Studies in

Business, 3(2), 40-54.

Adamala, S., & Cidrin, L. (2011). Key Success

Factors in Business Intelligence. Journal of

Intelligence Studies in Business, 1(1), 107-

Agostino, A., Solberg Søilen, K., & Gerritsen, B.

(2013). Cloud solution in Business Intelligence

for SMEs – vendor and customer perspectives.

Journal of Intelligence Studies in Business, 3,


Allan, G. (2003). A critique of using grounded

theory as a research method. Electronic

Journal of Business Research Methods, 2(1):


Alpar, P., Engler, T., & Schulz, M. (2015).

Influence of social software features on the

reuse of Business Intelligence reports.

Information Processing and Management, 51,


Amara, Y., Solberg Søilen, K., & Vriens, D.

(2012). Using the SSAV model to evaluate

Business Intelligence Software. Journal of

Intelligence Studies in Business, 3, 29-40.


mid, A., Moalagh, M., & Zare Ravasan, A.

(2012). Identification and classification of ERP

critical failure

Factors in Iranian industries. Information

Systems, 37: 227–237.


Anderson, M., & Sohal, A. S. (1999). A study of

the relationship between quality management

practices and

Performance in small businesses. International

Journal of Quality & Reliability Management,

(9): 859–877.

Aziza, A., Oubrich, M., & Solberg Søilen, K.

(2015). The impact of CRM on QoE : An

exploratory study from mobile phone industry

in Morocco. Journal of Intelligence Studies in

Business, 5(2), 22-35.

Bartlett, M. (1950). Test of significance in factor

analysis. British Journal of Psychology, 3: 77–

Banerjee, M., & Mishra, M. (2015). Retail supply

chain management practices in India: A

business intelligence perspective. Journal of

Retailing and Consumer Services, 2-12.

Beth, L. (2006). ‘BI Governance.


Bhamra, R., Dani, S., & Bhamra, T. (2010).

Competence understanding and use in SMEs:

an UK manufacturing perspective.

International Journal of Production Research,

-15.doi: 10.1080/00207541003738873

Boudreau, M., Gefen, D., & Straub, D. (2001).

Validation in information systems research: a

state-of-the-art assessment. MIS Quarterly,


Caldeira, M., & Dhillon, G. (2010). Are we really

competent? Assessing organizational ability in


IT benefits. Emerald group publishing limited: 1-

Chasalow, L. (2009). A model of organizational

competencies for business intelligence success.


Dissertation, Virginia Commonwealth


Chen, Y.-C., & Wu, J.-H. (2011). IT management

capability and its impact on the performance

of a CIO. Information & Management, 48:

–156. doi:10.1016/

Chuah, M.-H., & Wong, K.-L. (Eds.). (2013). the

Implementation of Enterprise Business

Intelligence: Case Study Approach. Journal of

Southeast Asian Research, 1-15.


Cochran, W. G. (1954). Some methods of

strengthening the common chi-square tests.

Biometrics, 10: 417451.

Cox, C. (2010). Balancing decision speed and

decision quality. ProQuest, Dissertation,

California: Faculty of the College of Business


Crawford, L., & Hassner Nahmias, A. (2010).

Competencies for managing change.

International Journal of

Project Management, 28: 405–412.


Danneels, E. (2002, September 19). The dynamics

of product innovation and firm competences.


Management Journal, 23: 1095–1121.


Doherty, N. F., & Terry, M. (2009). The role of IS

capabilities in delivering sustainable

improvements to competitive positioning.

Journal of Strategic Information Systems, 18:

–116. doi:10.1016/j.jsis.2009.05.002

EnEscrig-Tena, A. B., & Bou-Llusar, J. C. (2005).

A Model for Evaluating Organizational


An Application in the Context of a Quality

Management Initiative. Decision Sciences, 36

(2): 221-257.

Exploratory Factor Analysis - Statwiki. (2012).



Feeny, D., & Willcocks, L. (1998). Core IS

capabilities for exploiting information

technology. Sloan management review, 39(3):


Fourati-Jamoussi, F. and Niamba, C.N. (2016)

An evaluation of business intelligence tools: a

cluster analysis of users’ perceptions. Journal

of Intelligence Studies in Business. Vol 6, No

Pages 37-47.

Ghazanfari, M., Jafari, M., & Rouhani, S. (2011).

A tool to evaluate the business intelligence of

enterprise systems. Scientia Iranica E, 18(6):

–1590. doi:10.1016/j.scient.2011.11.011

Ghazanfari, M., Jafari, M., & Rouhani, S. (2011).

A tool to evaluate the business intelligence of

enterprise systems. Scientia Iranica E, 1579–

Green Jr., K., Inman, R., Birou, L., & Whitten, D.

(2014). Total JIT (T-JIT) and its impact on

supply chain competency and. Int. J.

Production Economics, 147, 125–135.


Hair, J., Black, W., Babin, B., & Anderson, R.

(2010). Multivariate data analysis (7thed.). NJ,


Prentice-Hall, Inc. Upper Saddle River.

Harzallah, M., & Vernadat, F. (2001). IT-based

competency modeling and management: from

theory to practice in enterprise engineering

and operations. Computers in Industry 48:


Hermosillo Worley, J., Chatha, K., Weston, R.,

Aguirre, O., & Grabot, B. (2005).

Implementation and optimization of ERP

systems: A better integration of processes,

roles. Computers in Industry, 56: 620–638.


Hollander, M., & Wolfe, D. (1973). Nonparametric

Statistical Methods. Wiley: 21–132.

Hoppe, M. (2013). The intelligence worker as a

knowledge activist – an alternative view on

intelligence by the use of Burke’s pentad.

Journal of Intelligence Studies in Business,


Huang, K.-F. (2011). Technology competencies in

competitive environment. Journal of Business

Research, 64: 172–179.


Isik, Ö. (2010). Business intelligence success: an

empirical evaluation of the role of bi.


Dissertation, Texas: University of North Texas.

Isik, O., Jones, M. C., & Sidorova, A. (2013).

Business intelligence success: The roles of BI

capabilities and decision environments.

Information & Management, 50: 13–23.


Miller, G. i., Bräutigam, D., & Stefani, G. (2006).

Business Intelligence Competency Centers a


Approach to Maximizing Competitive Advantage.

In Canada: SAS Institute.

Momeni , A., & Mehrafzoon, M. (2013). Critical

Factors of Competitive Intelligence in the

Power Plant Industry: The Case Study of

MAPNA Group. Journal of Intelligence

Studies in Business, 3(1), 31-43.

Muntean, M., Gabriel Cabău, L., & Rînciog, V.

(2014). Social Business Intelligence: A New

Perspective for Decision. 12th International

Symposium in Management. 124, pp. 562 –

Timisoara, Romania: Procedia - Social

and Behavioral Sciences.


Javanmard, H., Mashayekhi Nezamabadi, E., &

Larki, N. (2010). Surveying the


Competencies for Implementing the Knowledge

Management in Markazi Province's Gas

Company, Iran. IEEE

: 531-533. IEEE. doi: 978-1-4244-5540-9/10

Jayanthi, R. (2008). Business justification with

business intelligence. The journal of

information and knowledge management

systems, 38(4), 461-475. doi:


Kaiser, H. (1958). The Varimax criterion for

analytic rotation in factor analysis.

Psychometrika, 23(3): 187–200.

Kaiser, H. (1974). An index of factorial simplicity.

Psychometrika 39: 31–36.

Lee, Y.-T. (2010). Exploring high-performers’

required competencies. Expert Systems with

Applications, 37: 434–439.


Li, S., Shue, L.-Y., & Lee, S.-F. (2008). Business

intelligence approach to supporting strategymaking


ISP service management. Expert Systems with

Applications, 35: 739–754.

Lilliefors, H. W. (1967). On the Kolmogorov-

Smirnov tests for normality with mean and

variance unknown.

Journal of the American Statistical Association,

: 399-402.

Lin, Y.-H., Tsai, K.-M., Shiang, W.-J., Kuo, T.-C.,

& Tsai, C.-H. (2009). Research on using ANP

to establish a performance assessment model

for business intelligence systems. Expert

Systems with Applications 36: 4135–4146.

Montealegre, R. (2002). A process model of

capability development: lessons from the

electronic commerce strategy. Organization

Science, 13(5), 514-531.

Ngai, E. W., Chau, D. C., & Chan, T. (2010).

Information technology, operational, and

management competencies for supply chain

agility: Findings from case studies. Journal of

Strategic Information Systems: 118.


Nienabera, H., & Sewdassb, N. (2016). A

reflection and integration of workforce

conceptualisations and measurements for

competitive advantag. Journal of Intelligence

Studies in Business, 6(1), 5-20.

Nunnally, J. (1978). Psychometric Theory.

McGraw-Hill, NY.

Oubrich, M. (2011). Competitive Intelligence and

Knowledge Creation - Outward insights from

an empirical survey. Journal of Intelligence

Studies in Business, 1, 97-106.

Penrose, E. T. (1959). The theory of the growth of

the firm. Oxford, UK: Basil Blackwell,


Peppard, J., & Ward, J. (2004). Beyond strategic

information systems: toward an IS capability.

Journal of

Strategic Information Systems, 13: 167–194.

doi:10.1016/j.jsis.2004.02.002 (Peppard &

Ward, 2004)

Peppard, J., Lambert, R., & Edwards, C. (2000).

Whose job is it anyway? : Organizational

information competencies for value creation.

Information system journal, 10: 291-322.

(Peppard, Lambert, & Edwards, 2000)

Popovic, A., Hackney, R., Simoes Coelho, P., &

Jaklic, J. (2012). Towards business

intelligence systems success: Effects of

maturity and culture on analytical decision

making. Decision Support Systems, 54: 729–


Prahalad, C. K., & Hamel, G. (1994). Strategy as

a field of study: Why search for a new


Strategic Management Journal, 15(S2): 5–16.

doi:10.1002/smj.4250151002 (Prahalad, 1994)

Ravichandran, T. (2007). IT Competencies,

Innovation Capacity and Organizational

Agility: Performance

Impact and the Moderating Effects of

Environmental Characteristics. CIST,

INFORMS: 1-23.

Sabanovic, A., & Solberg Søilen, K. (2012).

Customers’ Expectations and Needs in the

Business Intelligence Software Market.

Journal of Intelligence Studies in Business, 2,


Schaarschmidt, M., Walsh, G., & Kortzfleisch, H.

(2015). How do firms influence open source

software communities? A framework and

empirical analysis of different governance

modes. Information and Organization, 25, 99–

Selznick, P. (1957). Leadership in administration:

A sociological perspective. New York: Harper

& Row.

Solberg Søilen, K., & Hasslinger, A. (2012).

Factors shaping vendor differentiation in the

Business Intelligence software industry.

Journal of Intelligence Studies in Business, 3,


Straub, D. (1989). Validating Instruments in MIS

Research. MIS Quarterly 13(2): 147-169.

Tarafdar, M., & Gordon, S. R. (2007).

Understanding the influence of information

systems competencies on process innovation.

Journal of Strategic Information Systems, 16:

–392. doi:10.1016/j.jsis.2007.09.001

Turban, E., Sharda, R., Delen, D., & King, D.

(2010). Business Intelligence: A Managerial

Approach, second edition. Pearson, New


Tyler, B. B. (2001). The complementarity of

cooperative and technological competencies: a

resource-based perspective. Journal of

engineering and technology management, 18:


Wade, M., & Hulland, J. (2004). The resourcebased

view and information systems research:

review, extension, and suggestions for future

research. MIS Quarterly 28(1): 107-142.

Wang, C.-H. (2015). A novel approach to conduct

the importance-satisfaction analysis for

acquiring typical user groups in businessintelligence

systems. Computers in Human

Behavior, 1-9.

Wang, Y., Lo, H.-P., & Yang, Y. (2004). The

constituents of core competencies and firm

performance: evidence from high-technology.

Journal of engineering and technology

management, 21: 249-


Wilcox Kingl, A., & Zeitham, C. P. (2001).

Competencies and firm performance:

examining the causal ambiguity paradox.

Strategic Management Journal, 22(1), 75–99.

Doi: 10.1002/10970266(200101)22:1

Willcocks, L., Feeny, D., & Olson, N. (2006).

Implementing Core IS Capabilities: Feeny-

Willcocks IT

Governance and Management Framework

Revisited. European Management Journal,

(1): 28–37. doi:10.1016/j.emj.2005.12.005

Worley, J., Chatha, K., Weston, R., Aguirre, O., &

Grabot, B. (2005). Implementation and

optimization of ERP systems: A better

integration of processes, roles, knowledge and

user competencies. Computers in Industry, 56,

–638. doi:10.1016/j.compind.2005.03.006

Zouine, A., & Fenies, P. (2015). A new evaluation

model of ERP system success. Journal of

Intelligence Studies in Business, 5(1), 18-39.


  • There are currently no refbacks.

JISIB is indexed by ESCI, SCOPUS, EBSCO, DOAJ, Google Scholar, EconBib and SCImago, and is ranked as a Level 1 publication by the Norwegian Social Science Data Services. JISIB has applied for admittance to Web of Science.