IDEAS home Printed from https://ideas.repec.org/a/vrs/foeste/v23y2023i2p183-203n7.html
   My bibliography  Save this article

Impact of Business Intelligence on Company Performance: A System Dynamics Approach

Author

Listed:
  • Khare Ira

    (Manipal Institute of Technology, Manipal Academy of Higher Education, India)

  • Rodrigues Lewlyn L.R.

    (Manipal Institute of Technology, Manipal Academy of Higher Education, India)

  • Gulvady Samskrati

    (University of Technology and Applied Sciences, Sultanate of Oman)

  • Bhakta Sudheer S.

    (Manipal Institute of Technology, Manipal Academy of Higher Education, India)

  • Nair Girish K.

    (University of Derby, Al Rayyan International University College, Qatar)

  • Hussain Anisa

    (V-Soft Consulting Group, Inc., USA Jamal Mohammed College, India)

Abstract

Research background Businesses struggle with operational optimisation and seek a solution by implementing Business Intelligence (BI) to boost sales. But, due to the lack of research that use actual data from real-world situations; the impetus of this research is to exploit BI parameters to enhance company performance. Purpose This research aims to develop a System Dynamics (SD) based model to assess whether a Japanese company which manufactures Printed Circuit Boards (PCB) should invest in BI to improve its operations based on the rate of information processing, thereby leading to increased financial performance. Research methodology The authors requested financial statements for three years (2019 to 2021) from the management of the PCB company, followed by validation based on subject experts’ assessments. The model was developed and simulated step-by-step with consideration of the SD approach involving problem identification, model prototyping, trouble shooting and error analysis. Results If BI was used to process data at a rate of 40%, the endogenous factors considered in this study would increase the company’s net profit and accumulated earnings by 25.77% and 48.28%, respectively. Novelty The research is unique in the sense that the model was developed based on inter-relationships between the variables, and the data is based on a real-life situation. Furthermore, the methodology could be applied with the necessary modifications to industries such as service, media, and education.

Suggested Citation

  • Khare Ira & Rodrigues Lewlyn L.R. & Gulvady Samskrati & Bhakta Sudheer S. & Nair Girish K. & Hussain Anisa, 2023. "Impact of Business Intelligence on Company Performance: A System Dynamics Approach," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 183-203, December.
    • Handle: RePEc:vrs:foeste:v:23:y:2023:i:2:p:183-203:n:7
    DOI: 10.2478/foli-2023-0026
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/foli-2023-0026
    Download Restriction: no
    File URL: https://libkey.io/10.2478/foli-2023-0026?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Basile, Luigi Jesus & Carbonara, Nunzia & Pellegrino, Roberta & Panniello, Umberto, 2023. "Business intelligence in the healthcare industry: The utilization of a data-driven approach to support clinical decision making," Technovation, Elsevier, vol. 120(C).
    2. Mehdi Khazaei, 2021. "Relationship of profitability of world’s top companies with entrepreneurship, competitiveness, and business environment indicators," Applied Economics, Taylor & Francis Journals, vol. 53(23), pages 2584-2597, May.
    3. Cheng, Cong & Zhong, Huihui & Cao, Liebing, 2020. "Facilitating speed of internationalization: The roles of business intelligence and organizational agility," Journal of Business Research, Elsevier, vol. 110(C), pages 95-103.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adomako, Samuel & Amankwah-Amoah, Joseph & Donbesuur, Francis & Ahsan, Mujtaba & Danso, Albert & Uddin, Moshfique, 2022. "Strategic agility of SMEs in emerging economies: Antecedents, consequences and boundary conditions," International Business Review, Elsevier, vol. 31(6).
    2. Javeed, Sohail Ahmad & Akram, Umair, 2024. "The factors behind block-chain technology that boost the circular economy: An organizational perspective," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    3. Xie, Qunyong, 2023. "Firm size and Chinese firms' internationalization speed in advanced and developing countries: The moderating effects of marketization and inward FDI," Journal of Business Research, Elsevier, vol. 159(C).
    4. Basile, L.J. & Carbonara, N. & Panniello, U. & Pellegrino, R., 2024. "The role of big data analytics in improving the quality of healthcare services in the Italian context: The mediating role of risk management," Technovation, Elsevier, vol. 133(C).
    5. Pham Quang Huy & Vu Kien Phuc, 2023. "Big data in relation with business intelligence capabilities and e-commerce during COVID-19 pandemic in accountant’s perspective," Future Business Journal, Springer, vol. 9(1), pages 1-21, December.
    6. Osama Musa Ali Al-Darras & Cem Tanova, 2022. "From Big Data Analytics to Organizational Agility: What Is the Mechanism?," SAGE Open, , vol. 12(2), pages 21582440221, June.
    7. Giacosa, Elisa & Culasso, Francesca & Crocco, Edoardo, 2022. "Customer agility in the modern automotive sector: how lead management shapes agile digital companies," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    8. Pinho, Celso R.A. & Pinho, Maria Luiza C.A. & Deligonul, Seyda Z. & Tamer Cavusgil, S., 2022. "The agility construct in the literature: Conceptualization and bibliometric assessment," Journal of Business Research, Elsevier, vol. 153(C), pages 517-532.
    9. Jafari-Sadeghi, Vahid & Amoozad Mahdiraji, Hannan & Busso, Donatella & Yahiaoui, Dorra, 2022. "Towards agility in international high-tech SMEs: Exploring key drivers and main outcomes of dynamic capabilities," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    10. Qiao, Penghua & Chang, Ming & Zeng, Yuping, 2024. "The influence of digitalization on SMEs’ OFDI in emerging countries," Journal of Business Research, Elsevier, vol. 177(C).
    11. Mohammad Reza Seddigh & Sajjad Shokouhyar & Fatemeh Loghmani, 2023. "Approaching towards sustainable supply chain under the spotlight of business intelligence," Annals of Operations Research, Springer, vol. 324(1), pages 937-970, May.
    12. Yi, Changjun & Zhang, Jipeng & Zhan, Yun & Yan, Xiaojuan & Chen, Chusheng, 2021. "Internationalization speed and subsidiary survival of EMNCs: The moderating roles of CEO international experience and state ownership," Journal of Asian Economics, Elsevier, vol. 77(C).
    13. Li, Lixu & Ye, Fei & Zhan, Yuanzhu & Kumar, Ajay & Schiavone, Francesco & Li, Yina, 2022. "Unraveling the performance puzzle of digitalization: Evidence from manufacturing firms," Journal of Business Research, Elsevier, vol. 149(C), pages 54-64.
    14. Nadia Zahoor & Francis Donbesuur & Zaheer Khan & Shlomo Y. Tarba & Cary L. Cooper, 2023. "Revisiting the Accelerated Internationalization of Emerging Market SMEs: The Roles of Firms’ Collaborations and Environmental Management Practices," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    15. Li, Keyao & Griffin, Mark A., 2023. "Unpacking human systems in data science innovations: Key innovator perspectives," Technovation, Elsevier, vol. 128(C).
    16. Xie, Zaiyang & Wang, Jie & Miao, Ling, 2021. "Big data and emerging market firms’ innovation in an open economy: The diversification strategy perspective," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    17. Aghileh Marzieh & Lima Rui, 2024. "Investigating the relationship between knowledge management and organizational agility in an industrial company," Organization, Technology and Management in Construction, Sciendo, vol. 16(1), pages 186-203.
    18. Deng, Ziliang & Zhu, Ziyan & Johanson, Martin & Hilmersson, Mikael, 2022. "Rapid internationalization and exit of exporters: The role of digital platforms," International Business Review, Elsevier, vol. 31(1).
    19. Youssef, Mayada Abd El-Aziz & Eid, Riyad & Agag, Gomaa, 2022. "Cross-national differences in big data analytics adoption in the retail industry," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    20. Liu, Yang & Ying, Zhenzhou & Ying, Ying & Wang, Ding & Chen, Jin, 2024. "Artificial intelligence orientation and internationalization speed: A knowledge management perspective," Technological Forecasting and Social Change, Elsevier, vol. 205(C).

    More about this item

    Keywords

    Business Intelligence; accumulated earnings; net profit; production cost; number of goods produces; revenue;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M29 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:foeste:v:23:y:2023:i:2:p:183-203:n:7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.