NAME: Mazahir Hussain ID: 20100

Assignment: Summary of Article, ‘Towards Business Intelligence systems success: Effects of

maturity and culture on analytical decision making’
(https://www.journals.elsevier.com/decision-support-systems)

This article is written by Ales Popovic, Ray Hackney, Pedro Simoes Coelho, Jurij Jaklic, from
Portugal, printed in The Journal Decision Support Systems in 2012. When organizations operate
in highly competitive environments, evaluating the effectiveness of BIS is vital to our
understanding of the value and efficacy of management actions and investments. They
conducted a quantitative survey-based study to examine the relationships between maturity,
information quality, analytical decision making culture, and the use of information for decision-
making as significant elements of the success of BIS. Statistical analysis of data collected from
181 medium and large organizations is combined with the use of descriptive statistics and
structural equation modeling.

The Sample was asked to answer a questionnaire based on previous theoretical basis, a
combination of seven point Likert scale and seven points’ semantic differentials. Measurement
items were developed based on the literature review and supported by expert opinions. The
proposed measurement model involved 31 manifest variables loading on to 7 latent constructs:
(1)Data integration;(2)Analytical capabilities;(3)BIS maturity;(4)Information content quality;
(5)Information access quality;(6)Use of information in business processes; and(7)Analytical
decision-making culture.

The data analysis was carried out using Structural Equation Modeling (SEM). Models were
estimated with Partial Least Squares (PLS) that has been widely selected as a tool in the IS/IT
field. A review of the literature suggests that empirical tests of BIS, BIS maturity, information
asymmetry, and use of information in business processes are still rare. Hence, PLS is the
appropriate technique for research purpose. They first examine the reliability and validity
measures for the model constructs, in the initial model not all the reliability and convergent
validity measures were satisfactory. After validating the measurement model, the hypothesized
relationships between the constructs were tested. A bootstrapping with 1000 samples was
conducted. The structural model was then assessed by examining the determination
coefficients, the path coefficients and their significance levels.

The findings provide some interesting insights into the interrelationships between BIS success
dimensions and the effects of BIS maturity and analytical decision-making culture on use of
information. Survey data linked Data integration and Analytical capabilities as two dimensions
of BIS maturity. Studies suggest that data integration is a starting point for implementing BIS. In
addition, only information content quality is relevant for the use of information while the
impact of the information access quality is non-significant. We find that an analytical decision-
making culture necessarily improves the use of information but it may suppress the direct
impact of the quality of the information content.