Business intelligence adoption framework for small-medium enterprises: case study information technology small-medium enterprises in Kamwokya, Kampala Uganda

Abstract

The increasing complexities and competitiveness in today’s businesses calls onto the use of analysis, trends and forecasting to make effective and timely business decisions. Worldwide, adopting business intelligence (BI) technologies provides actionable insight for better decision making. Small and medium sized enterprises (SMEs) are still behind when it comes to using analysis technology for effective decision making. The big enterprises have, however, reached fully embraced BI for decision making. This study proposes a BI adoption framework for IT SMEs by incorporating BI maturity into four BI adoption theories of diffusion of innovation (DOI), Institutional, Technology Organization Environment (TOE) framework, IS integration model in addition to identifying factors that impact levels of adoption while being guided by the following objectives: To find out the drivers or factors for business intelligence, to investigate existing BI adoption frameworks/models and their loop holes and to design a BI adoption framework for IT SMEs in Kamwokya, Kampala Uganda. Case study was followed and cross sectional design because the researcher wanted to gather data once over a period of time in order to answer the research questions. The study population was 2015 and a sample size of 102 respondents was determined by the Soloven’s formula. The proposed BI adoption framework is empirically tested using survey data from 6 IT SMEs. Results indicate that BI adoption within IT SMEs in in Kamwokya, Kampala Uganda is still at an initial stage and classified at the lowest level of BI maturity. Relative advantage, complexity, organisational resource availability, competitive pressure, vendor selection and owner-managers’ innovativeness are the most important factors that impact BI adoption. Results from the study and the proposed BI adoption framework can be used by government agencies to develop strategies to increase the rate of BI adoption among SMEs. The issue of time was one of the challenges faced during the compilation of this report.