Adoption Of Business Intelligence Systems in Small and Medium Enterprises: An Integrated TAM-TOE Perspective
TL;DR
Perceived usefulness, organizational readiness, and competitive pressure are the strongest predictors of BI adoption intention among SMEs and perceived ease of use has a weaker effect than expected, suggesting that SME managers prioritize strategic value over usability when considering BI adoption.
Abstract
This study investigates the factors influencing the adoption of business intelligence (BI) systems among small and medium enterprises (SMEs). By integrating the Technology Acceptance Model (TAM) with the Technology-Organization-Environment (TOE) framework, this research proposes a comprehensive model that was empirically tested using data collected from 312 SME managers across multiple industries in Indonesia. A quantitative approach was employed using an online survey instrument, and the data were analyzed using Structural Equation Modeling with Partial Least Squares (PLS-SEM). The results indicate that perceived usefulness, organizational readiness, and competitive pressure are the strongest predictors of BI adoption intention among SMEs. Interestingly, perceived ease of use has a weaker effect than expected, suggesting that SME managers prioritize strategic value over usability when considering BI adoption. Furthermore, top management support positively moderates the relationship between organizational readiness and BI adoption intention. This study extends the theoretical understanding of technology adoption in resource-constrained settings and provides practical recommendations for BI vendors and policymakers targeting the SME market.