THE ADOPTION OF BUSINESS INTELLIGENCE PRACTICES IN SMALL TO MEDIUM-SIZE ENTERPRISES

Abstract

Background: The adoption of Business Intelligence (BI) practices has gained attention across enterprises as rapid advances in digital technologies enable the automation of business processes and enhance organisational competitiveness. BI tools offer SMEs the ability to generate insights that support informed decision-making. Despite these benefits, SMEs often encounter challenges in adopting and implementing BI, particularly in relation to financial constraints, limited staff skills, and organisational culture. Objectives: This study investigates the adoption of BI practices in small and medium-sized enterprises (SMEs) to examine the extent of BI integration and its impact on decision-making, competitiveness, and the critical success factors influencing effective BI implementation. Method: A qualitative research approach aligned with an interpretivist paradigm was employed. The Technology Acceptance Model (TAM) was adopted as the lens to guide the study. Data were collected through in-depth interviews with nine (9) participants, including owners, a director and co-founder, and employees from three purposively selected SMEs. Participants were chosen to reflect diverse organisational roles and experiences with BI tools. The interview data were analysed thematically to identify patterns related to BI adoption, utilisation, and effectiveness. Results: The findings indicate that BI adoption among South African SMEs remains limited, with many enterprises relying primarily on basic BI tools. Nevertheless, SMEs that have adopted BI reported improvements in decision-making speed and overall competitiveness. Key challenges identified include data integration issues, financial limitations, and a lack of technical skills. Successful BI adoption was found to depend on leadership support, appropriate training, strategic alignment, and the use of tailored, cloud-based BI solutions. Conclusion: The study concludes that while BI adoption offers notable performance benefits for South African SMEs, its success is contingent upon addressing financial, skills-related, and cultural barriers. Enhanced funding support, practical training initiatives, and effective change management are essential. The study contributes practical insights into the enablers and challenges of BI adoption in a developing economy context and extends the discourse on BI adoption in emerging economies, offering guidance for policymakers, SME owners, and technology providers seeking to enhance SME competitiveness through data-driven decision-making.